Comprehensive Report: TESCO's E-Business Strategy and Analysis

This report provides a comprehensive analysis of TESCO's e-business strategy, examining its impact on the company's performance and service operations. It begins with an introduction to e-business strategies and their importance, followed by a detailed overview of TESCO's background, including its global presence and financial performance. The report then delves into TESCO's e-business strategy, focusing on its website and online platforms. The report also evaluates the company's current e-business strategy, highlighting the benefits of e-business and the differences between current and e-business applications. Furthermore, it discusses the needs and design of TESCO's online business model, along with its e-business architecture, and the challenges and risks faced by the company. The report concludes with the changes expected for TESCO, offering recommendations for security enhancement and other improvements. The report uses a research plan based on the effect of E-business strategy over the business of Tesco and its activities and uses the qualitative and quantitative approach for the business.

E BUSINESS STRATEGY
STUDENT NAME
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SUBMITTED TO
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Contents
Introduction...................................................................................................................3
Research Question.......................................................................................................3
Research Plan..............................................................................................................3
Research Methodology.................................................................................................3
Report to senior Manager.............................................................................................3
Introduction...................................................................................................................4
Company Background..................................................................................................4
E-business strategy......................................................................................................4
Evaluation and Analysis of Present E-business Strategy............................................4
Importance of E-business strategies............................................................................5
Analysis of E-Business strategy of TESCO..................................................................5
The difference in the current system & E-business application...................................6
Needs & Design of Online business model of TESCO................................................6
E-business architecture................................................................................................8
Challenges & Risks faced by the TESCO....................................................................8
Changes expected for TESCO.....................................................................................9
Conclusion..................................................................................................................10
References.................................................................................................................10
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Introduction
The E-business strategy has several positive and negative impacts on the business
of a company. It has a very big impact in every field irrespective of the nature of the
business. It provides a competitive analysis over the company using the strategy for
business performance.
Research Question
How the E-Business strategy increases the profit level of Tesco and innovates the
service operations of the company?
Research Plan
The research plan is based on the topic of the effect of E-business strategy over the
business of Tesco and its activities. This strategy needs to use the website or other
online sources for making an effect on the business. The research question is
chosen to evaluate the customer’s satisfaction from the e-business strategy of
Tesco. It also needs to make the security plans for providing secure services to the
customers using the E-business strategy. It will help to attract more customers if the
customers get satisfaction from the e-business strategy of the company. It needs to
use the technique of firewall or encryption for providing safety in business
transactions.
Research Methodology
The methodology requires making the business plan using the proper evaluation of
the question. It requires using the inductive approach for the research tool and
techniques of business. For this methodology, it requires using the qualitative and
quantitative approach for the business. In this methodology, the research
requirement is done using the various techniques for the company.
Report to Senior Manager
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Introduction
This assignment reflects the effect of E-business strategy. The strategy improves the
company growth by providing various factors of competitive growth. It helps
company to use new opportunities for the business. This report is based on the E-
business strategies of TESCO. The assignment will evaluate the effect of the E-
business strategy on company performance and one business strategy.
Company Background
TESCO is a world famous company dealing in grocery retailing. Headquarter of the
company is located in England. This company is the third largest company in earning
profits in the world. The vision of this company is to provide the best quality products
to the customers at reasonable prices. It has 6.243 stores in 13 countries across the
world. The companies earn $116 billion as the consolidated profit of the different
locations. The company earns almost 27% share of the grocery retail industry. It
uses the E-business strategies to expand the company business to other locations
and to increase the sales of the company. Tesco has also launched its website for
the E-business of company products (Tesco.com, 2019).
Strategy of E-Business
The term E-business strategy can be termed as the strategy used for online
businesses. It is the strategy used by the company with the help of internet. This is
the internet based techniques used to make sales of company products. This
strategy helps to determine the goals of company whether these are long term or
short term (Liu, 2015).
Evaluation and Analysis of Present E-business Strategy
Importance E-business strategies
The E-business strategy helps to make it easy to transfer the data as faster than the
traditional method of transfer of information. It helps to provide more accurate
information having higher efficiency of information. This strategy helps to transfer the
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complete information to the stakeholders and provide great efficiency of company
data to the customers. E-business strategy helps the customers to make the real-
time order. The order helps to place the order at the same time using the electronic
system. It makes the ordering of products more feasible and profitable for the
company (Eaton, 2013, 548-550). This strategy helps the customers to use the
computerization system of advance level. This strategy has made it easy to make
the purchase process. It reduces the errors and delays to a large extent. The
strategy helps to make the sharing of information in an easy way using the online
sources (Lapoule and Colla, 2016).
E-Business strategy Analysis of TESCO
The strategies of E-business help to handle the operation of the network digital
system. TESCO has used E business strategies for the marketing of company
products. The company uses the documentation of the network of E-business
strategy. It used the digital form of codification techniques in the business. In the
company, the electronic network helps the company to manage the information and
providing the best quality information for the customers of the company (Huang
&Benyoucef, 2013). TESCO adopted the technique of E-business to reduce the
product cost of the company. This strategy helps the company to reduce the
operational cost and transaction cost for the company products. It also helps to
increase the technical advancements of the company using the company services. It
helps the company to expand the market using the E-business strategy for the
company. The strategies provide the effective growth of the company (Chiejina and
Olamide, 2014,).
It helps to make direct associates with the customers by providing the online
services and products of the company. Relationship with the customers helps the
company to make effective production with the customer's demand. E-business
strategy helps to make it easy because it helps to take the feedback of the
customers for the company products. This helps the company to make the company
production in an easy way (Fang and Qureshi, 2014). It helps to collect the payment
on the time of making sales using the credit cards for the business. The primary
operations of the company are described in the following discussion:
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Production process: The process helps to make the procurement of the operations
and replenishment of the company products. TESCO uses the web software
development tool for the improvement in business production (Chen, Pan and
Ouyang, 2014).
Customer focused process: The process needs to make focus over the marketing
and promotional activities of business over the internet. TESCO uses the company
brands over the internet or social media to increase the company’s production and
sales (Fernie and Sparks, 2014).
Clubcard of TESCO
TESCO has launched business strategies over the E-commerce platform for
attracting the customers of the company. The club card was introduced in the year
1995. It helps to track the data of customers of the company using the E-business
strategy of the company. The club card helps to use the warehouse technology for
the company with the help of online services (Hirt and Willmott, 2014).
The difference in the current system & E-business application
The current business of TESCO is achieving an effective turnover. But implementing
E-business will help the company to attract more customers for the company. The
current system includes more cost than the E-business strategy. It requires high
advertising cost for the company. E-business helps to make easy advertising for the
company. E-Business attracts more customers than the current business strategies.
The present business requires more employees for business processes. E-Business
makes it easy for the company to complete the business processes with the limited
number of employees.
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Needs & Design of Online business model of TESCO
Key
partners
Key
activitie
s
Key
resources
Value
propositi
on
Customer
relationshi
ps
Channel
s
Cost
structure
Reven
ue
stream
s
Businesse
s at a
local and
regional
level
Suppliers
Associatio
ns
Local joint
ventures
Selling
and
buying
consume
r goods
Efficient
distributi
on
system
Collect
feedback
Analyzin
g
custome
rs’
demand
s
Website
Accounts
on digital
platform
Clubcard
IT
Infrastruct
ure
Logistics
and
warehousi
ng
24/7
shopping
experienc
e
Safe
online
shopping
Home
delivery
Personaliz
ed
shopping
for
cardholder
s
·
Clubcard
retains
customer
loyalty
Attract
more
customers
with
enhanced
quality
products
and
services
Stores
The
dedicate
d
website
of Tesco
Social
media
Mobile
applicati
on
Staff
IT
infrastruct
ure
Capital
expenditur
e
The model shows the analysis of the E-business strategy using the online business
model for the company. The analysis shows that the suppliers of the company can
provide real time data for the company using the E-business strategy. The supplies
help to achieve the business goals and meet the requirements for the company.
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TESCO uses the E-business strategies which help the suppliers for making access
to the company for the various supplies for the company sales (Afshar, Zhang and
Brem, 2013). Buyers of TESCO also get the benefits of the strategy. It helps the
buyers to view the different products of the company. They can compare the
products with the other companies also. It can help the customers to buy the best
quality product using the comparison analysis. TESCO reaches the customers at the
global level using the strategy of E-business (Mohapatra, 2013, 151-173 ).
The E-business strategy helps the customers to get the benefit of customized
products for the company. The TESCO can make access to the customer's feedback
and provide them the products as per their demands. It helps to create individual
products using the customized feature of the company products. It helps to solve the
queries of customers on a real-time basis (Colla and Lapoule, 2012).
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E-business architecture
Challenges & Risks faced by the TESCO
TESCO has faced many challenges in the E-business strategies for the company.
There are many barriers, some of which are discussed as follows:
Technical Issues: In using the E-business strategy for the company, TESCO faces
the issue of technical problems. The company needs to use various security levels
for company performance and transactions. It needs to use the firewall, encryption,
intrusion detection system, and other types of technical methods for providing safety
to the company. It needs to use the methods for identifying the hackers of the
business. SQL injection needs to be adopted by the TESCO for identifying the virus
by the company. It requires using the new technical methods for information security.
Technical problems included in the system are the use of credit cards or other
payment methods. Some hackers use various hacking tricks to get the passwords of
the cards. Customers are afraid to use the method of payment using online
payments (Shemi& Proctor, 2013).
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Social Issues: There are some social issues in the use of E-business strategy that
TESCO is facing in the present period. TESCO's IT infrastructure is not effective for
the use of E-commerce business. It requires using modern and advanced
technologies for the effective implementation of the E-commerce business. The
company requires skilled labor for handling the techniques in the company. The
existing employees may not have the appropriate skills to use the software required
for the E-business strategy. It affects the business strategy due to the resistance of
change by the employees of the company (Ghezzi and Mangiaracina, 2012).
Costly: E-business strategy has many positive effects on the business. But this
method seems costly somewhere. It needs the TESCO to provide the training to the
employees for updating with the use of software of the company. It needs to hire
technical experts for the security purpose of the online business. Thus, it affects the
cost of the company for hiring the technical experts in the company. The cost of
training also affects the company’s cost. Thus it seems as a costly process for the
company’s production process (Carrillo, Vakharia and Wang, 2014). It requires the
TESCO to arrange more finance for the business for using the E-business strategies
in the company.
Changes expected for TESCO
In the above information, we have evaluated different factors and challenges for the
E-business strategy on the TESCO. There are some recommendations for the
company to be followed:
Security Enhancement: TESCO must adopt the advanced techniques for security
purpose. It needs to make use of the firewall or encryption method for providing
security in the business transactions. It can help to attract customers to use the
online source for buying things with the effective security level. TESCO can make
the global level sales using the safe and secure method of information of the
company.
Training and education: TESCO must influence the employees to get more
knowledge of being educational for their position. It needs to provide the training to
the employees for the technical factors of the company. They must provide the
training for software use and using the online sources in an efficient way. The
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employees must get higher level of knowledge or education while continuing their
jobs.
Central Technology and system: It needs the company to use the central system
for the company information or available data. TESCO needs to make one place for
the tracking system, delivery system, or dispatch system of company products. It will
help to reduce the cost of making a connection over different locations.
Conclusion
In this project, we analyzed the E-business strategy used by the TESCO. It
concludes that a company needs to adopt the strategy for enhancing the business
operations in the company. It is required for making significant growth in the
company. It also concludes that E-business model provides many benefits to the
company. The project also concludes the challenges faced by TESCO while applying
the E-business strategy. It also provides some recommendations for the challenges
faced by the TESCO.
References
Afshar, A., X. Zhang, S. and Brem, A., (2013). E-commerce for SMEs: empirical
insights from three countries. Journal of Small Business and Enterprise
Development, 20(4), pp.849-865.
Carrillo, J.E., Vakharia, A.J. and Wang, R., 2014. Environmental implications for
online retailing. European Journal of Operational Research, 239(3), pp. 744-755.
Chen, J.E., Pan, S.L. and Ouyang, T.H., 2014. Routine reconfiguration in traditional
companies’ e-commerce strategy implementation: A trajectory
perspective. Information & Management, 51(2), pp. 270-282.
Chiejina, C. and Olamide, S.E., 2014. Investigating the Significance of the' Pay on
Delivery' Option in the Emerging Prosperity of the Nigerian e-commerce
sector. Journal of Marketing and Management, 5(1), p. 120.
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Colla, E. and Lapoule, P. (2012). E-commerce: exploring the critical success
factors. Journal of Retail & Distribution Management, 40(11), pp.842-864.
Eaton, S. (2013). The Oxford handbook of empirical legal research.International
Journal of Social Research Methodology, 16(6), pp.548-550.
Fang, Y., Qureshi I, 2014. Trust, Satisfaction, and Online Repurchase Intention: The
Moderating Role of Perceived Effectiveness of E-Commerce Institutional
Mechanisms. Mis Quarterly, 38(2), pp.407-427.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues
and new challenges in the retail supply chain. Kogan Page Publishers, p. 36-41
Ghezzi, A.,Mangiaracina, R., 2012. Shaping the e-commerce logistics strategy: a
decision framework. International Journal of Engineering Business Management, p.
42-49
Hirt, M. and Willmott, P., 2014.Strategic principles for competing in the digital
age. McKinsey Quarterly, p. 21-26.
Huang, Z. and Benyoucef, M., 2013. From e-commerce to social commerce: A close
look at design features, Electronic Commerce Research and Applications, 12(4),
pp.246-259.
Lapoule, P. and Colla, E., 2016. The multi-channel impact on the sales forces
management. InternationalJournal of Retail & Distribution Management, 44(3),
pp.248-265.
Liu, S.U.N., 2015. The Development and Countermeasures of Small and Medium-
Sized Enterprise’s B2B E-commerce, US-China Foreign Language, p.608.
Mohapatra, S., 2013, E-commerce Strategy, In E-Commerce Strategy (pp. 155-
171).Springer US.
Shemi, A. and Proctor, C.T., 2013. Challenges of E-Commerce Adoption in SMEs:
An Interpretive Case Study of Botswana. Botswana Journal of Business, 6(1), pp.17-
30.
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