IMAT5211 Coursework: E-commerce Strategy Analysis of Tesco Plc.

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IMAT5211 Coursework Ecommerce
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Table of Contents
Introduction.................................................................................................................................................3
Research Questions.....................................................................................................................................4
Requirement of proposing and justifying the E-commerce strategy in an organization...............................5
Research Methodology................................................................................................................................6
Critical Analysis..........................................................................................................................................7
Practical Relevance, Creativity, Insights...................................................................................................10
Factual Basis.............................................................................................................................................12
Recommendations:....................................................................................................................................15
Conclusion.................................................................................................................................................16
References.................................................................................................................................................17
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Introduction
The current business scenario is classified as cut-throat competition between competitors,
technology advancements, increasing customer demands, etc. it is becoming more significant for
an organization to look modes of business to protect their position and increasing profitability. E-
Commerce is a tool that helps an organization to enhance business and profits. It brought a
revolutionary change in operations of the organization. Business organizing on e-commerce is an
important feature to change the economy of the company with positive growth. E-business has
changed the technique of thinking and offers opportunities to attain competitive advantages.
Tesco has been preferred for this assignment to determine the impact of e-business strategies on
the corporate performance of it. The integration of e-commerce strategies not only improves
productivity but also enhances higher client’s satisfaction. Examination of e-commerce strategies
on Tesco to calculate whether the combination of e-strategies into a commercial platform is
effective or not.
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Research Questions
To gain higher customer satisfaction and attraction. This also helps the employees to reduce
customer troubles.
1. Justify the E-Business strategy and changes expected in an organization.
2. What will be the implementation plan for an organization to form E-Commerce business.
3. Discuss the changes expected in an organization.
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Requirement of proposing and justifying the E-commerce strategy in an organization
The primary cause behind the growing internet users besides social media is E-commerce. There
is a need for proposing and justifying the E-commerce business strategies to know the
implementation plan to form an E-commerce business. And how e-commerce platforms change
an organizations business and what more changes are required to attain in an organization (Akter
& Wamba, 2016). This study will also help in knowing the benefits of E-commerce business on
an organization. Some of the elements of E-commerce strategy include designing a website and
its functionality, selecting a suitable platform for website, security agreement, and Mobile
Functionality.
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Research Methodology
Research Methodology will help in solving the mentioned research questions with proper
estimation. The inductive method would be followed in order to attain that, this approach
includes analysis of quantitative data as well as secondary data collection method. This approach
facilitates to select suitable research tools and techniques in order to accumulate data from
reliable sources. Furthermore, this inductive research approach also assists in analysing data with
suitable techniques of data analysis i.e. quantitative technique.
The quantitative research approach used in recording data from a huge number of contributors to
add transparent and suitable descriptions related to the topic selected.
The quantitative data analysis method uses numeral data and Statistical facts to retrieve
beneficial information from analysing E-commerce strategies utilized in retail business
applications. This study will be accomplished with Tesco. 7 staff members and 48 customers of
Tesco Plc. are selected and structured questionaries’ will be circulated between those
respondents. Like Scale Analysis will be used in measuring these responses offering rank from
first to fifth. Where first signifies strongly agreed and fifth signifies strongly disagrees. The
validity of facts and contents can be checked by using test-retest method (Chaffey, 2015).
The complete data analysis will be explained in the following sector of a report which helps in
drawing an accurate result at the completion of the work.
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Critical Analysis
This research is entirely related to E-commerce .E-commerce is basically defined as purchasing
and selling products and services by using the internet but it includes a wholly online process of
marketing, developing, selling, servicing, delivering, and paying for products. E-commerce is
considered as an integral part for today’s business as it eases the business for consumers as well
as producer, E-commerce is accessible all over the world and comprises of vast varieties of
products from various vendors, reliable payment networks, less time-consuming. This type is
business facilitates to a consumer as well as business thus documentation will be accomplished
with more reliability and efficiency. Connectivity plays a vital role, and E-commerce offers
enhanced connectivity to all potential candidates across the world. E-commerce is a good
platform for trouble free shopping (Jimenez et. al., 2019).
Tesco Plc. is a grocery retailer as well as all-purpose merchandise has headquartered in England,
UK and considered as the third largest retailer all over the world. Tesco is considered in this
research work to study the implementation of e-commerce, benefits and the strategy involved as
this organization has heavily invested in E-commerce and offers a website and a mobile
application with service in 70 stores. Tesco is the major supermarket chain of the country.
Recently Tesco had launched Tesco Now that is offering one-hour delivery system.
E-commerce strategy of Tesco
Tesco is documented as the largest grocer and consists of an annual turnover of around 1 billion
pounds online in the country. Tesco.com depends on advertising in-store and further promoting it
in supermarkets club card customers persuades shop online. For current customers, email
marketing is done in order to provide special offers and promotions to their clients and also uses
automatic event generated messages to encourage regular purchases. Not only this, the Tesco
website offers an overall advantage of e-service and also responds to queries. (Clarke et. al.,
2015). Tesco achieved 150,000 orders a week but presenting more intangible presents such as e-
diets, downloading music, etc. this company provides a single source with a reliable way of
doing trade with a vast variety of e-service providers.
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Administrative authority of Tesco uses the credentials and codification accomplishments in a
digital form. Further electronic network aids in managing the movement of information to offer
exclusive quality business services. It helps in adopting new tools and technologies that can
change the current business model in a distinctive manner. (Fernie et. al., 2018).
Analysis of e-business strategy
(Source : Author)
Implementation Plan
New development with strategic implementation is necessary for an extremely competitive
business such as Tesco with
The existing market situation External and internal factors are considered to set implementation.
There is a need for evaluating market strategies for product development, market development,
and integration. Another factor is advanced and diversified culture for implementation. Funds
required in Tesco and future profits can be demonstrated with the help of Feasibility analysis.
(Zhou, 2017).
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purchasing
server
content
server
customer
services
server
advertising
server payment server
account server administration
sdervices
shipping and
delievery
server

It is necessary for Tesco to assign the cost the resources properly because of cost strategy
implementation a large number of resources. These resources include human resources, financial,
material as well as time resources. It is also important for Tesco to monitor and evaluate the
growth of implementation procedures for recognizing gaps as well as an area of improvement
(Hiles & Hon, 2016).
Advantages of E-commerce business in Tesco
Globalization for product advertising and sales to reach a broader range of customers. E-
commerce assisted in well-organized inventory management as well as stock control to
maximize product availability. Just in Time JIT warehousing is established in order to remove
availability restrictions for saving expenses for the clients and the company. (Sin et. al., 2016) To
establish trust and identity, corporate image is essential in direct sales to confirm the brand
image. Computerized databases, computer-aided designs, emails, intranet, and internet equipped
Tesco with some essential tools for maximizing procedures and communications. From finding
and dealing with contractors of products via phone, fax, email to marketing to in-store and sales
and promotions with the help of television, internet sites, radio , electronic billboards and lastly
for customer support by email, phone etc. e-commerce has entirely transformed the working of
Tesco. E-commerce in Tesco can decrease transaction as well as an operational cost, improves
customer services as well as market expansion. (Sim et. al., 2016).
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Practical Relevance, Creativity, Insights
With an integrated computerized system in processes at stock control, check out level and
database, Tesco launched a ‘Tesco club card' which offers customers to make points from each
purchase. This involves registration of the name of customer, address details with contact
number and issuance of the personal card. Tesco could tell about the purchases to calculate
points but it also offers discounts and coupons indefinite goods and items to their customers.
This greatly permits customers who are having club card to Tesco for a personal shopping
experience (Bell, 2017).
Then in 1996, the organization has launched 24 hours trading, at that time a lot to do with
computerized application and electronic approaches of operation from warehouses to tills. This
includes the electronic way of stock control to help the continuous replenishment when vital time
management, television, use of barcodes, radio commercials, and printed flyers advertising the
organic range. In 1999, Tesco launched an online bookstore as well as online banking and also
published supermarket costs comparisons on the internet. The organization uses e-commerce is
growing at such an amount that competitors would have had to have seatbelts tight to catch up
with massive merchants (Bones & Hammersley, 2015).
Tesco launched tesco.com in the year 2000, which generally initiated the whole Tesco
transformation of online shopping with Tesco for nearly about every household product. To
advertise and selling product and services online, this organization has constructed a way to
deliver its goods and services to its customers in the comfort of their individual places and no
need to visit stores. It was considered maximum suitability for customers and now the customers
can shop anytime without having time constraints and have their products delivered at agreed
times. Now the company also reached a broader range of individuals both geographically and
socially and also deducing traffics at the same time in the stores (Taylor, 2018). There is such a
good range of elasticity for customers related to the whole shopping experience. Nowadays,
organizations can be gained access via the World Wide Web on computers or even on mobile
phones (Sridhar, 2017). The use of email, databases, fax, intranet, computer programs, and
internet internally enabled Tesco to enhance its operational capabilities and can be processed,
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accessed, and sent across specific divisions within a limited time period it includes purchasing
operations, supply, management, accounts, sales marketing, etc.
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Factual Basis
There are around 1.92 billion peoples who buy products online. The number is increasing
continuously and customers are looking for advance online shopping options. Market places
attracting customers because it offers the best prices, free shipping options. E-commerce
comprising of lots of big data. By 2021 the expected business expenditure will be $6 trillion with
a $15 trillion contribution to world GDP by 2030. (Schultz & Block, 2015).Here is a few facts
and figures about Tesco Plc.
 Founded in 1919 by Jack Cohen in London and now the largest retailer in the country and
fourth largest globally.
 It comprises 30% shares of Britain supermarket.
 Tesco first superstore is opened in 1956 in transformed cinema. Now it has comprises
6966 stores employing 472000 across the world.
 Tesco opened its first store in Hungary, outside Britain.
 Tesco presents 14 markets including Poland, Ireland, China, Japan, and United States.
 Tesco marketing issues a catchy phrase “every little help”.
 Tesco titles the most profitable and reliable online grocery retailer across the world.
 The supermarket launched a loyalty scheme in the year 1995.
 In the soccer world cup it expects to sell 800,000 flags, 300,00- televisions and 500,000
England footballs.
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