1. Based on the Case Study and Your Own Research on Competitors, Summarize the Strategic Approaches Which Have Helped Tesco.Com Achieve Success Online.

5953 Words Dec 1st, 2011 24 Pages
1. BASED ON THE CASE STUDY AND YOUR OWN RESEARCH ON COMPETITORS, SUMMARIZE THE STRATEGIC APPROACHES WHICH HAVE HELPED TESCO.COM ACHIEVE SUCCESS ONLINE.

Strategic decisions are ones that are aimed at differentiating an organization from its competitors in a way that is sustainable in the future. (Porter, 2002) Porter strongly advocates that decisions in business can be classified as strategic if they involve some innovation and difference that results in sustainable advantage. According to Porter, (2002) operational effectiveness and efficiency are the key elements of success in any organization. A company can outperform its rivals or competitors in the market only with superior management and efficient control creating a
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Drawing upon Keynote (2010), this dual strategy is exhibited through the development of self-service kiosks, financial services, focused direct marketing and promotions.

In order to put Tesco’s value chain analysis into perspective, despite its cost leadership strategy the company has been able to create a high degree of value in comparison with its key competitors. The relative analysis of the value created by the big four supermarket chains, i.e., Tesco, Asda, Sainsbury’s and Morrisons has been provided as follows:

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The following strategic approaches were adapted from the two generic strategies been used by Tesco.com which had made them successful online are as follows:

FIRST MOVER OR PIONEER STRATEGY

Tesco is seen as the most innovative food retailer in the UK retail market, enjoying the advantages of a first mover or pioneer of online retailer but also striving to avoid the disadvantages that become advantages to followers (Lieberman and Montgomery 1988), such as and continual innovative of products and services.

The most important advances were that Tesco was first to the first to introduce internet shopping, first to introduce cut-price products under its own brand name in 1993, first to introduce a customer loyalty programme with the Tesco Club card which was followed by the rival UK chains like Sainsbury and
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