Tesco.com - A Rare Profitable Dotcom|IT and Systems|Case Study|Case Studies

Tesco.com - A Rare Profitable Dotcom

            
 
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Case Details:

Case Code : ITSY025
Case Length : 14 Pages
Period : 1990-2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Tesco plc
Retail ing
Countries : UK

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

A Unique Business Model - The Ingredients of Success

The 'Pick-in-The Stores' System

The online grocery selling industry (in the US in particular) had evolved around the concept of centralized, big warehouses, where the merchandise was stored...

Delivering Excellence

After filling the shopping carts, the orders were loaded into delivery vans. Commenting on the complexity of the delivery problems Tesco faced, an analyst said, "If you have a van going from a Tesco store to a dozen local customers, it is a logistical nightmare.

You have got to choose the route so that you can do the drop-offs in an efficient sequence, make sure you load the right food, picked in the correct order, and then, if customers are out, you have the problem of not being able to deliver the food." Tesco devised an elaborate mechanism for delivering orders....

IT and Systems Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

Inventory Management

Tesco knew that one of the keys to managing a successful online selling business was efficient inventory management...

Customer Service

Tesco's personalized approach had another advantage. Just as retail stores priced their products based on the area of operations (slightly higher prices in posh localities and vice versa), Tesco varied its prices based on the area to which a particular customer belonged.

However, the company took care to ensure that the prices still remained competitive as compared to other retail/online operations offering their services in any given area. Unlike many other online grocery sellers, Tesco believed that it stood to gain by offering as many items through the Internet as it did in its stores...

Excerpts Contd... >>






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