Tesco e-business case

The method to create new opportunity, e-business
Electronic Commerce (EC) is new field, which every company finds new opportunity in. EC made the world to be one chained market, which can give opportunity for company to expand customer. EC is not a choice anymore but it’s mandatory.

Tesco in Electronic Commerce
- Frequent shopper program
- Customized DM, through combining point card and POS data system
- DM strategy make usage rate of coupon increase more than 60%

Club Card
Tesco is, as the biggest hypermarket in U.K., selling not only grocery but also CD, book, DVD, clothes, electronic goods and so forth. They use a club card as a marketing method. If customer register club card and use this card, they can compound the point that can be used any time and any store in Tesco branch and Tesco dot com.
This card can increase loyalty of customers as well as collect customers’ profile. That made huge data base of customer. It also enabled sending customized DMs.

Tesco.com (combining on-line & off-line)
In U.S.A., the biggest grocery internet store is England based Tesco.com and not American stores. How could they succeed in on-line business? That was a methodical electronic system. Base on their off-line store, they enabled to make delivery system. This delivery system enabled to deliver fresh groceries.
If customer clicked the goods they wanted, the goods are packed in logistic center. And then it is delivered by freezer truck. Their 760 chains and 16 logistic centers enabled that things which being delivered without any loss in their freshness.
In beginning of the Tesco.com (in 1998), they recorded a big loss. But due to high technology of electronic logistic system, they entered to positive profits record and their delivery system could cover 95% of U.K. area.

Digital cart
Tesco support digital cart system made it easier and faster for employees of logistic to find the goods, which customers ordered. Through this effort, they can carry out 7 orders at once. This system was developed for managing inventories. So they can manage to sell and to stock in real time.

E-business system became one of the core ability in Tesco. They still continue to make an effort to improve their system now. As mentioned above, E-system give many opportunities to us.