1.2. Objective and Scope of the Report The main objective of this study is to examine the important and advantages for Tesco in using e-business strategy to compete with competitors. It also includes on how Tesco could satisfied their customer needs or demands adequately with their e-business strategy and how Tesco could improve their current model and make it even better. In this report, the writer will explain the background of Tesco, purpose, benefit, the shortcomings and the impact on its business by using e-business strategy, as well as the developments in the strategies and business models of online supermarket retailing. The preceding section on objective set the basic scope of this report.
1.2. Objective and Scope of the Report The main objective of this study is to examine the importance and advantages for Tesco in using e-business strategy to compete with competitors. It also includes on how Tesco could satisfy their customer needs or demands adequately with their e-business strategy and how Tesco could improve their current model and make it even better. In this report, the writer will explain the background of Tesco, purpose, benefit, the shortcomings and the impact on its business by using e-business strategy, as well as the developments in the strategies and business models of online supermarket retailing. The preceding section on an objective set the basic scope of this report.
Direct-to-consumer is a full opportunity for FMCG companies, particularly in the e-commerce channel. Recent research have proven that FMCG companies’ executives are underestimating the potential of e-commerce for their business and might be missing on opportunities to prosper on many levels. Manufacturers have started to explore the opportunity to become distributors, to offer a full branded experience to their consumers and go beyond their usual strategic business area. Nestlé launch of Nespresso products and owned stores is a clear example that manufacturers can become much more than just brands and suppliers to retailers : they can be excellent service providers, bring a true added-value to their consumers, a strong brand connection along with additional business and
This is to enable customers to recognize what the seller sells. For example, the company (Tesco) works hard in terms of packaging so it can attract users to buy it. Not only that, promotion also plays a role. When good quality, reliable items and strong brand image can lead to excellent value. Users will not hesitate to buy them.
Next, the stiff competition has caused other retailers to give a lot of incentives to their consumers, thus affecting Tesco as the prices frequently need to be driven down. Besides, bargaining power of consumers are high as there are availability of substitutes. If consumers are unsatisfied, they tend to switch to other brands as switching costs are
On the other hand, the clarity of Tesco’s vision of continuous growth via diversification supports the organizational effectiveness in the marketplace (Pitt&Koufopoulos,2012). Tesco ability to gather resources and adapt their capabilities to create value reminds me of Wal-Mart rise to the world’s #1 retailer. With strategic asset (land) and distinctive capability (Loyalty), companies will continue to manifest a creation of value. Exploitation leads to increase opportunities to create advantages and enhance its value-creating capabilities in the
1 Introduction Marketing Mix is the most famous part of marketing and plays a great role in every organization. The success in the business in many cases depends on the success of the marketing mix. The company Tesco is very much conscious about marketing mix. Tesco uses marketing mix in various ways to acquiring more customers in retail industry. Their innovative way of implementing marketing mix delivers this company a lucrative position which significantly effects on the buying behaviour of the customer.
A business employing B2B methods also has the ability to customise a sales process for each client, but using technology they can call up information on clients readily and with superior knowledge. Some very able B2B companies are able to plan accounts and profitability with great accuracy, using intelligence and even specific arrangements with clients allowing them to share greater depth of information, in order to create better partnerships and longer term business relationships. (cxm.co.uk, 2018) Primary Characteristics of B2C models As the most popular and well-known of all models of commerce in the modern world, the Business to Consumer (B2C) model is defined as commercial business where the customer is the end-consumer of any products and services that
The government has also made an impressive investment in improving the IT infrastructure and Relaxed EU along with flexible policies on E-retailing has proved another advantage for Amazon. Economic High interest rates in UK have restricted consumers on spending much. Despite this, the number of domestic buyers in UK is increasing which is a positive signal for the company to explore this sector of the market through its products.
They assume that that reason belongs to one of the two main groups: functionality or emotionality. For example, people will shop online if it is more comfortable and convenient (functionality). Besides, if it provides any kind of additional entertainment value (emotionality). Using this theory we can assume that to attract customers to online shopping in fashion industry the retailers must ensure at least one of those reasons. Another group of authors, for example, Prasad and Aryasree (2009), tried to explain the matter of customers’ trust and how it affects their willingness and strong desire to shop online.