Digital Business Report: Evaluating Digital Business Models for Tesco

This report provides a comprehensive analysis of Tesco's digital business strategies, evaluating key trends, advantages of digital technology, and their implications for managing a virtual business in the global environment. The report delves into the evaluation of new and emerging digital business models, such as the "click and collect" model, within the context of key business issues like cyber security and ethical considerations. Furthermore, it examines the impact of new collaborative relationships and strategic alliances formed through digital technology, particularly focusing on how Tesco leverages these alliances. The report also explores e-commerce principles and their practical application within Tesco, highlighting the challenges and opportunities that arise from digital transformation. Through this analysis, the report offers insights into Tesco's adaptation to the evolving digital landscape and its strategic approach to maintaining a competitive edge in the retail industry. The report also highlights the importance of mobile-based purchase and payment options as well as business efficiency and intelligence gathering for Tesco.

Digital Business
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Key trends and advantages of digital technology...............................................................3
2. Evaluation of new and emerging digital business model in context of key business issue5
3. Impact of new collaborative relationship and strategic alliance related with digital
technology..............................................................................................................................6
4. E-commerce principles and their use by the organisation..................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
The term digital business is a process of engaging technology for formulate and add new value in
organisation operations and functions. The primary focus of digital business is to maximise the
internal capabilities of an organisation which support the core operations of business by using
digital channel. In simple terms, digital business is to include both digital brands and traditional
players for transforming the organisation with use of digital technologies (Zhuravlev and et. al.,
2019). This report is written from perspective of TESCO which is a multi-national retail
organisation. They operate supermarket, stores, etc. in the international market and the current
market conditions consider towards completion of task with more speed through using digital
method and technology. Therefore, TESCO management also focus on all those methods which
are related with digital business for performing business according to current E-commerce
trends. Key trends and advantages of digital technology and implications of digital business to
manage work in the global environment will be learned from this report. In the last, evaluation of
new collaborative relationship and strategic alliances is also highlight in the upcoming report.
MAIN BODY
1. Key trends and advantages of digital technology
Digital transformation in the industry provides methods and actions of accomplishing
opportunities to the organisation by providing knowledge related with digital business.
Digitalisation is a process of reinventing the business through inducing new business model that
are related with technology. Some of the advantage related with digital technology is mention as
follow:
 COMMUNICATION SPEED- Internet speed is one of the most crucial factors and this
defines that internet helps management of TESCO for better communication. The
communication speed is one of the most important aspects and this is managed by the
Internet (Wood, Wrigley and Coe, 2017). Better and effective communication helps
Tesco for completion of work through induce appropriate interaction methods.
Traditional communication method takes more time as compare to digital business so the
technology works more effective for Tesco.
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 INFORMATION STAGE- Digital technology enable the organisation for store more
information and this helps management to store massive amount of Data. Tesco perform
their business in the retail industry and they offer large variety of products. So the digital
method provide technology because this helps business for store all information and
simply this provide benefit to respective organisation such as inventory management is
properly done through the advantage of information storage.
TRENDS
The term digital technology performs an important role and this helps management for install of
appropriate methods and actions which helps management to complete work in a proper manner
as this helps them to complete task according to digital market scenario (Rashid, 2016). Some
digital trends that impacts on organisation are mention as follow:
 Mobile-based purchase and payment option- In the present scenario, mobile-based
retail payment is one of the most important factors and also, it is easily identify or view
by the Tesco and buyer. This helps organisations for collect the payment and also to place
the order. Therefore, use of mobile application by the consumers is one of the major retail
trend related with business.
 Business efficiency and intelligence gathering- The internet of things enable tracking
and collecting data from different sensors which are deployed by management. Retail
value chain includes various points related with sale, supply chain planning, analytical
solutions, etc. and all of these techniques are used by the management for manage work
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in a digital manner. This also helps organisation for complete the work in a simple and
organised method.
Implications for managing virtual business in the global environment
Virtual corporations provide the information related with temporary network of independent and
they are used by companies, suppliers, customers, etc. It helps management for complete work
according to shared skills, cost and providing access to persons in another market. This governs
that management induce, engage and complete all operations by digital technology (Rahimin and
et. al., 2020). Immersive technology catch and describe all methods and they are used for
perform work through the use of augmented reality and virtual reality. From the perspective of
TESCO, improvement and development are the major factors and this is used to engage all
devices in an appropriate manner. Individual which are related with retail industry consider that
there are different factors exists and it is used for New Level product prototyping. This helps in
completion of task with more efficiency. From perspective of TESCO, New level among product
prototyping considered towards use of VR techniques and this helps in completion of work in a
more organised manner. One of the quick method for detect the design problems and to deal with
them management use the Digital programs and reality for better decision-making. The current
scenario and most of its operations relates with technology factor and this helps in analyse of
successful methods. It results to conduct the virtual meetings for completion of work all over the
globe. In simple terms, to minimise the impact of virtual business organisation detect various
problems that work as barrier for business to perform work in a proper manner.
2. Evaluation of new and emerging digital business model in context of key business issue
TESCO is one of the leading organisations of the retail industry which perform business
in the global market. With understand of current market scenario, this is understood by TESCO
management that they have adopted digitally transformed techniques (Pousttchi and Hufenbach,
2014). So with the perspective of TESCO, business platform are going digital so with induce of
click-and-collect methods all functions are completed by the management in a digital manner.
Tesco use the technology and this help for develop of the business in different areas and also
product portfolio is also increased to manage work in a proper manner. CLICK AND COLLECT
is used as a digital model by the TESCO and this helps in completion of work through analyse of
different factors engage of digital technology to adopt the current techniques of grocery store.
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Further, this is important for management as this emergence digital model for Tesco
management to establish the online grocery store.
ISSUE OF CYBER SECURITY- In the context of UK retail market, this is identified that large
of individuals are engage in company operations and functions. The primary challenge faced by
management of TESCO is that a lot of information is stored by buyer in Tesco applications.
Therefore, this creates problems for Tesco as if the cyber security is not strong than management
lose confidential information. It create problems for business because customer not provide
essential data if their personal data is lost. Click and collect model perform an important role and
this helps to analyse all the information as this helps to improve the business knowledge in a
more efficient manner (Pantano and Vannucci, 2019). Heavy investments perform an important
role and according to this all task are completed with implement the current supply chain
management. Click and collect model is used for forecast and then only utilise the appropriate or
required information. This considered for operating the model according to security related issue
and this helps to track and use all those forecast methods which provide the channels to manage
work with forecast the collected information in a proper manner. POSITIVE FACTOR of Tesco
operating model is to use the model according to digital in-store initiatives. “Scan as you shop”
is a positive example of company digital model. The negative factor related with business is that
digital model are complex to learn and this create problem to manage work in a proper manner
(Nandamuri, Rao and Mishra, 2020).
ETHICAL ISSUE- From the perspective of TESCO, club board loyalty scheme is identified as a
method and this helps to perform work in a proper manner. The primary focus of click and
collect model is to maximise the ethical perspective between customers and organisation.
Therefore, this considered that BIG DATA and Algorithms perform an important role and this
helps management to perform work in a proper manner. Driving the customers personalised
discounts and this helps in forecast about all those about the demand. TESCO, need to leverage
about the completion of task with self-check models. There are many factors such as scanning,
analysing and operating with digital perspectives exists and it helps in completion of task with
technology factors. TESCO identify positive factor because digital model help to expand the
market and this is used to utilise the innovation perspectives for manage and complete task in a
more accurate manner. Positive factor perform an important role and it helps to analyse the
digital wallet for perform work in an innovative manner. TESCO management utilise technology
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factor because it allow customers for scan and pay about the factors that is used to manage work
with perform company operations and functions in a proper manner. Click and Collect model
also generate challenges because technology is difficult to enrol in company operations. In
simple terms, technology tools are used to communicate with the customers but this is not
possible that digital methods also able to deal with customers.
3. Impact of new collaborative relationship and strategic alliance related with digital technology
In the present scenario, this is identified alliance and relationships perform an important
role for individuals. The current strategic alliance and collaboration formed by Tesco is done
with engage of local authorities (Leischnig, Ivens and Kammerlander, 2017). Online tools
generate easy and simple factors as it lead them to complete work in a more competitive method.
According to the current conditions such as pandemic conditions generate challenges. This result
it is difficult for management to perform work on the basis of a single organisation. Therefore,
new collaborative relationship and strategic alliance perform an important role to improve the
decision-making and it helps in completion of task with more efficiency because more resources
are engaged in company operations. This also define Tesco management generate better relations
with their alliance to complete task with adopt of new digital methods to manage work according
to current methods. The marketing management also consider that technology is used as the tool
that assists to manage work in a proper manner. Moreover, with transform of business to engage
the collaboration and strategic alliance this is important to use the technology because it will help
to complete all work in a more advanced manner (Joglekar, Parker and Srai, 2020). Some major
impacts of the new collaboration and strategic alliances are mention as follow:
Selling of Commodities- E-commerce entail the overall process of selling and acquiring the
commodities related with business through use of digital transformation. In the present scenario,
management is focused for accomplish of all goals through use of digital technology. With
analyse of new collaboration method this is identified now this is complex to share all
confidential information with new partners because there is probability that Tesco lost their
important data to rivals. It generates challenges for management to perform work in an organised
manner. On the other side, by share of all information better and effective results is obtained and
it helps to integrate both organisation for complete work in a proper manner. This define that
both business face challenges to sale their products due to less digital interaction between
companies.
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Unpredictability in customer behaviour and confidence- The key of success in competitive
market is the customer confidence on the organisation. With analyse the current market
conditions this is understand that all task is managed by the engage of digital technology in
company operations and functions. From the perspective of Tesco, this is considered that
organisation considered towards expansion of business. Carrefour Today and Tesco is the current
strategic alliance that is end approximately in the month of December, 2021. Both organisation
identified the impact related with customer behaviour and it refers that Tesco has high goodwill
as compare to the Carrefour so temporary alliance impact on brand image of organisation.
Channel Conflict- Tesco is performing their work in the retail industry from more than one
century and they also sale commodities through using traditional methods and approach such as
through store, supermarket, etc. But, the present market is based on modern techniques and it
refers that all most each individual complete their work through use of digital methods (Hartley
and Sawaya, 2019). Like, shopping, advertisement, communication, etc. all task are performed
by the individuals through use of digital technology. In the context of new strategic alliance this
is identified that management complete work with analyse and understand of new channel
systems because this helps them for mitigate the problems related with channels. So the impact
related with digital transformation is to focus on company factors and then agree them for
complete work by use of similar channel. Even though this is also understand that customer
channel helps for implement and induce the electronic sources so both strategic alliance
businesses are able to perform work in a proper manner.
4. E-commerce principles and their use by the organisation
The term E-commerce refers to the buy or purchase of products through use of On-line
services. Electronic data-interchange and computer query such as to buy or sale of product with
use of computer or any other electronic device. It starts from the order of purchase till payments
of the products. Most of the current organisation and industry are performing their work as the E-
commerce business and it define E-commerce is the process of carrying out business according
to the online and electronic medium. Some of the E-commerce principles and their use are
mention as follow:
Foster a Consistent Tone of Voice- At the point when a client is purchasing from the site this is
on the grounds that they need to purchase from the products. This is used for marking, ethos and
strategic approaches line up with theirs and they need to perform work according to client. This
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is the reason person have a reliable manner of speaking across the Tesco company site. Also,
make it applicable to the organisation for manage business. In case the management sell about
the analyses of different approaches that ought to be proficient and utilize exact language. In the
case of retail organisation the language ought to be basic and fun that helps to perform work with
more efficiency.
Assemble Trust with an About Section- Tesco management can assemble an enduring
relationship with understand of clients by giving them fair and straightforward data about the
analyses of image and business (Hänninen, Mitronen and Kwan, 2019). In the context of Tesco
market segment consist about the site, it can give data about how the item is made, who causes it
and whatever other data that helps to feel is significant. Building this relationship allows
company to achieve an opportunity to transform a client into a bringing customer back. From the
perspective of TESCO, E-commerce principle consists to generate and build trust among persons
to perform their work in a proper manner.
Make Paying Easy- Since the client needs to checkout, make this cycle as straightforward as
could be expected and not give them motivation to not finish their buy. This refers that by
minimising the time-period of pay and checkout it is easy that individual will more focus on
buying of products. TESCO hypermarket also, deals in electronic products and they are high in
prices. This refers there are different task performed by business and most of them require high
investment. So by providing Guarantee that buyer has a scope of instalment choices provide
accessible to an incredible method for maximise the sales (Fulgoni, 2014). It's anything but an
extraordinary thought to unmistakably express that make delivery expenses and brings strategy
back. This load of variables help in acquiring the client's trust and expands changes.
Further develop Page Loading Speed- Moderate page stacking speed is one of the biggest
contributing components in helpless site skip rates. The most important principle of the E-
commerce is to improve loading speed of page. This is because online customers these days have
almost no tolerance and will leave the company website in the event that they're compelled to
stand by. Enhance the organisation site by decreasing picture record sizes, utilizing program
storing and lessening diverts. These would all be able to assist with making Tesco site load
speedier. This defines about the task and introduction of applications and it helps to complete the
work through more efficiency by make the easy and simple online platforms for sale and
purchase of products.
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Use of principles- Tesco authorities consider that a lot of persons are engaged in the company
operations and functions. Therefore, this is important for management to utilise the task and it
helps to consists and utilise the principle according to analyses of task that helps in use of all
engaged principles in a proper manner (Flanding, Grabman and Cox, 2018). Also, strict
principles and guidelines are induced by Tesco because these support to perform work according
to decided principles.
CONCLUSION
According to the above report, this is concluded that digital business performs an
important role and this aid to complete work with introduce of new policies and practices
especially that match with digital technology. Trends and advantages related with business such
as use of company website and application, business efficiency, etc. helps for engage of all
information and benefits to improve productivity of Tesco. Business model considered that
current market techniques help for enhance or maximise the company position in the competitive
environment. Strategic alliance provides new market opportunities to the business and it helps to
use the organisation for manage work in an ethical manner. In the last, E-commerce principles
and there use to perform work is selected to improve company productivity.
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