INTRODUCTION
 Tesco:A Major Retail
Grocery selling store
 Setup by Jack Cohen
 First to Introduce Self-
Service mode
 ...
TESCO.COM-
A RARE PROFITABLE.COM
 1996: Decided to tap the Internet for Business.
Accepted phone, fax, and Internet orde...
REASONS FOR PROFIT
GENERATION
Online customers tended to order costly
Merchandise in large quantities
Opportunities for ...
A UNIQUE BUSINESS
MODEL
“The Pick-In-The-Stores System”
Rejected warehousing Model : As demand
was low and it was a huge ...
 Divided Outlets into six Major zones – Bakery,
Groceries, Frozen Foods, Chilled-Foods, Liquor,
Produce.
 Electronic Sca...
FLOWCHART
THE INGREDIENTS OF
SUCCESS
Delivering Excellence:
 Problem: Complex
Delivery Procedure
What Tesco.com did?
 Optimal use ...
INVENTORY MANAGEMENT
 Inventory monitoring and
replenishment
How these conditions were
fulfilled?
 Used a wheel with lig...
CUSTOMER SERVICE
Differential pricing
Variety of merchandise
availability on
Tesco.com
Text to speech
conversion techni...
WEBSITE MAINTENANCE
 Tie up with knowledge
management consultants -
Intervowen
 Website updated on
regular basis
 CD ve...
Low fixed cost but high
variable cost
Intensifying
competition
Increasing Internet Traffic
Entry in U.S. Market
REASON...
Presented By:
Ashima
Pragyandipta Patnaik
Mayur Kansal
Neetika Panwar
Megha Yadav
Queries???
Sales increased from
$19.2Million to
$264 million
Online venture sustained due
to
Smart-small business
The Safeway alli...
Tesco.com
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Tesco.com

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Tesco.com - IT and online strategy and business model

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Tesco.com

  1. 1. INTRODUCTION  Tesco:A Major Retail Grocery selling store  Setup by Jack Cohen  First to Introduce Self- Service mode  Growth by Acquisitions  Introduced Trading Stamps  Businesses include financial services, online grocery retailing ,Petrol filling Stations
  2. 2. TESCO.COM- A RARE PROFITABLE.COM  1996: Decided to tap the Internet for Business. Accepted phone, fax, and Internet orders.  First retailing company that was an Internet Service Provider.  Proved Online Grocery selling as a viable Business.
  3. 3. REASONS FOR PROFIT GENERATION Online customers tended to order costly Merchandise in large quantities Opportunities for cross selling (Pop-up windows) Customers ordered in bulk to justify delivery charges of $ 5
  4. 4. A UNIQUE BUSINESS MODEL “The Pick-In-The-Stores System” Rejected warehousing Model : As demand was low and it was a huge investment. Opted for Positioning Information System in Existing Stores.  Used Shopping cart equipped with Online Displays.
  5. 5.  Divided Outlets into six Major zones – Bakery, Groceries, Frozen Foods, Chilled-Foods, Liquor, Produce.  Electronic Scanning of Ordered Items  Suggested Substitute Products for Out of Stock Items. Continued…
  6. 6. FLOWCHART
  7. 7. THE INGREDIENTS OF SUCCESS Delivering Excellence:  Problem: Complex Delivery Procedure What Tesco.com did?  Optimal use of Time and Resources  Predetermined route maps for Delivery  Generated $27 million through delivery Fees
  8. 8. INVENTORY MANAGEMENT  Inventory monitoring and replenishment How these conditions were fulfilled?  Used a wheel with light of various colors  Customer profile Database generated through loyalty card scheme
  9. 9. CUSTOMER SERVICE Differential pricing Variety of merchandise availability on Tesco.com Text to speech conversion technique was introduced for Blind people Timeliness of deliveries and accuracy with orders served
  10. 10. WEBSITE MAINTENANCE  Tie up with knowledge management consultants - Intervowen  Website updated on regular basis  CD version of website for dial up mode customers  System checks were carried out  MyWeb Software adopted
  11. 11. Low fixed cost but high variable cost Intensifying competition Increasing Internet Traffic Entry in U.S. Market REASONS TO WORRY
  12. 12. Presented By: Ashima Pragyandipta Patnaik Mayur Kansal Neetika Panwar Megha Yadav
  13. 13. Queries???
  14. 14. Sales increased from $19.2Million to $264 million Online venture sustained due to Smart-small business The Safeway alliance-The biggest testimony UNIQUE BUSINESS MODEL- THE OUTCOME
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