Supermarket Tesco And Its Online Venture †MyAssignmenthelp.com

Question: Discuss about the Supermarket Tesco And Its Online Venture. Answer: Introduction Strategic Management often concentrates on the diversification strategy of the consumer whereby the diversification is based on both product as well as the international level. In the retail scenario, diversification goes a long way for the firm in to increase its market share and attract better customers who stay in the organization for a long time (Barney and Hesterly 2015). The internet is a storehouse of various activities which help the company to utilize diversification approaches and enables them to have access to those markets, which were previously unexplored by the given company (Chaffey 2015). This concept was utilized by Tesco.com and along with it they combined their strength of a strong distribution channel to conduct both online as well as offline services in order to cater to a larger crowd. The primary aim of the given case study is to analyze the various diversification strategies which were adopted by the online giant in order to become successful. In the first section brief information on the company will be provided which will be followed by the strategic approaches that were used by the company to make its online venture successful (Rothaermel 2015). The approach aims to reflect on a proper understanding of the given case study and show the implementation of the models of e-marketing. About the company: TESCO Tesco plc which popularly trades as Tesco is a multinational grocery and general product merchandize business retailer based in Britain with its headquarters located in Garden city, Herefordshire in the United Kingdom (Tesco.com 2018). It is one of the largest retailers in the globe in terms of both revenue and profits. The company was found by Jack Cohen and he expanded his business rapidly. The company has diversified technologically and geographically as well into various arenas like books, clothing, prepaid services, broadband, petrol, electronics, financial services and others. It has also made its presence online for wider consumer base. The strategic approaches that have helped tesco.com achieve online success Product range development Product development can be referred to as an important tool which can be utilized by any organization to attain success (Slack 2015). Through the introduction of products and development of the existing products, an organization can offer its customers what they are seeking. This opens new opportunities for the firm and gives rise to an atmosphere of innovation in the organization. Very often for the development, customer information is applied in order to see to it that customers get attracted easily. The products developed according to the demands of the consumers tend to strengthen the position of the company. The company-user approach has been used by the Tesco Company in the given scenario. Due to the advent of technology, a track can be kept with respect to the needs and requirements of the consumer. This information which is obtained is then converted into the system and a database is maintained for the future. Under Wade-Gery`s leadership, the company made use of the given approach to attract a larger crowd of customers (Hill, Jones and Schilling 2014). The supermarket brand engaged in various dummy test approaches in limited markets to observe the success of the program. Only when this was successful, it launched its online services to various other markets. In the year 2015 itself, the company had successfully engaged in delivering a rough estimate of around 150,000 orders. Tesco used the diversification of product strategy to penetrate into different markets and gained huge shares in the markets of Ireland and the United Kingdom. Unlike its competitors, Tesco had not restricted itself to providing just grocery to its consumers but also provided much more services so that the customer would not have to visit any other website than Tesco.com. The customers could engage in activities like reloading their phones, broadband services and rental movies. Along with this, they were often inclined to shop for groceries also (Lasserre 2017). Providing a sufficient amount of convenience to the consumers made them popular. Improved customer experience online It was during this time that the internet business an e-commerce had started to flourish; Tesco realized that they had to have a presence online. Internet often provides the firms with great opportunities to serve as a cheaper alternative for a business distribution channel. Tesco realized that if it had to have an online presence, then it would be required to have an interface which was user friendly. The original store method of shopping made the customer wait before serving them. This aspect has got totally changed in the online scenario, hereby the customers have become an important component of the service process and are made to do half of the activities like selection and check out themselves. Tesco saw to it that their online website was a place of convenience whereby the customers are easily entertained and enjoy the shopping experience. This tends to make the communication process faster and make the customers more interested in adopting the online way. Tesco understood the problem of time with respect to online shopping and developed a formula whereby the company converted a time period of 1 hour that would have been applied by the customer to shop the items to almost half the time (35 minutes). It offered the customers with easy billing facilities and smart buying options which already took into the customer choice as a factor and showed products which the customer actually purchases. This formula helped Tesco.com to increase their revenue and even improve the customer relationship management by providing value for money to the consumers. Making home delivery part of Tesco. Coms DNA Tesco.com realized that if they aim to develop a successful relationship with their customers, they would be required to bring the supermarket at their doorstep. Wade-Gery decided to offer the delivery of the products purchased to the door step of the customers and they core business functions in order to improve This integrated approach was adapted by Tesco.com as a business model through which they developed an effective customer relationship management (Toufaily, Ricard and Perrien 2013). Under the leadership of Wade-Gery, the delivery service begins at 4am in the morning and the company has set up various delivery points in order to ensure the effectiveness of the service which is being offered. Amidst this, the customer has an opportunity to speak to the delivery man in order to keep a track of it. Hence, it can be stated that these strategies have enabled Tesco.com to gain a competitive advantage and increase their business. Tesco.com online success an e-business model at work Comparison analysis of Tesco with respect to the given model. Stage 1: Product Innovation The given stage comprises of innovation in the business, differentiation of services, respecting customer value. After analyzing the strategies adopted by Tesco to improve the business, it could be stated that the business was successful in implementing all the aspects of the given model. It engaged in development of its product which was one of its key success factors (Wheelen et al. 2017). Tesco also ensured that they incorporate value in the services by offering much more than just groceries to the given consumers. Stage 2: Customer Relationship In the given stage, information gathered from the various sources is assembled and analyzed in order to provide benefit to the different consumers. The transaction time which was reduced for the customers served as an important tool (White et al. 2013). An improved relationship with the consumers helped the company to a great extent to become popular among the consumers. Stage 3: infrastructure management The given stage makes use of strategies and assets in order to create a large value network and redefine the consumer boundaries. Tesco utilized this model by acquiring a maximum number of outlets in Asia, America, England and Ireland (Wang and Zhang 2013). Through this aspect the company wanted to stay closer to its consumers in order to see to it that there is no chance of missing out on these consumers. Stage 4: Financial aspect Tesco. Com applied a model whereby it reduced the delivery costs and bymarketing its presence online, it was able to reduce infrastructure and personnel costs as well to a great extent. Hence, from the analysis, it could be stated that Tesco`s online success was based on a well tested model. The company was able to target its objective accurately and make its operations grow. Even now, the company continues to expand and diversify its offerings and is planning to penetrate into new markets. Conclusion Hence, from the given analysis it can be stated that the company under the guidance of Wed-Gery, the company reached to new heights. It made sure that the company had both online as well as offline presence in order to see to it that the brand name remains in the minds of the consumers. Tesco.com made use of various business models to improve their share in the market. They engaged in successful diversification strategy in order to acquire new customers and explore new markets. Hence, Tesco.com is a clear example of how to achieve success by diversification and engage in sustainability. References Barney, J.B. and Hesterly, W., 2015.Strategic management and competitive advantage concepts and cases. Pearson. Chaffey, D., 2015.Digital business and E-commerce management. Pearson Education Limited. Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. Lasserre, P., 2017.Global strategic management. Palgrave. Park, K. and Jang, S.S., 2013. Effects of within-industry diversification and related diversification strategies on firm performance.International Journal of Hospitality Management,34, pp.51-60. Rothaermel, F.T., 2015.Strategic marketing management. McGraw-Hill Education. Slack, N., 2015.Operations strategy. John Wiley Sons, Ltd. 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