M8-S1 - Case - Tesco.com

Tesco.com

• Service can be used any time any place on any device
• Partnered with microsoft for online access
• In store internet cafe
  • Facilitate online shopping access
  • Online prices = in store prices
  • Offered online discounts and promotions
• 5 pound delivery fee
• Creation of online communities
• First mover effect

Questions for the case study: 1. In what ways does Tesco.com expect to benefit from its online initiative?

• More customer segments
• Increase loyalty and introduce barrier to switching costs
• Information asset
• Optimized supply chain
• Tesco had already invested in a customer purchase channel before the internet

2. How could Tesco leverage the data it gets from its loyalty “Clubcard” program?

• Personalized offers

3. Which strategic decisions did Tesco make and how did these decisions contribute to the success of Tesco’s multi-channel retailing business? How about the business model they used for their multi-channel retailing?

• Printed catalog

4. What recommendations would you make to Tesco.com management in order to sustain the company’s competitive advantage?

• Main tesco assets:
  • Physical distribution network & stores
• Entries to barrier
  • Competitors needs big investments
• Do not cannibalize on the companies DNA: do not leave the bricks and mortage
• Keep supply chain
• Club card
• Keep bricks & mortar business
• Integrated customer database
  • Extrapolate data for targetting
  • Collect profile and connectivity data
  • Monitor browsing and links
  • Collect transaction data
  • Collect payment data
  • Combine with external data
  • Build and maintain integrated database

Market research:

• Can i borrow your van to help me move?
• Can you give me a lift?
• I need some help to change a tyre?
• Could you unblock by sink>
• Can you answer my phone and tell whoever it is that i am out?

Unusual requests:

• I need some marital advice?
• Can you drop the kids at school?
• Could you give us a lift to the wedding?
• Do you want to join me for a candelight dinner?