Tesco in the digital era

Essay by naodai2009lukyUniversity, Master'sB+, October 2014

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Company Overview

TESCO is one of the world's leading international retailers in the United Kingdom. It was founded in 1919. With more than 2,500 stores worldwide, its products include food and non-food products. The company operates in 13 markets outside the United Kingdom, specifically in Europe (Czech Republic, Hungary, Poland, Republic of Ireland, Slovakia and Turkey and Asia) and in Asia (China, Japan, Malaysia, South Korea, Taiwan and Thailand). In 2012, TESCO ranked 4 in the best retail brands.

Retail in the digital age

Ian Geddes noted that the retail industry is confronted with unprecedented change. Constant connectivity, contextual relevance, and a multi-screen world are changing both online and offline shopping. (Sridhar Ramaswamy, 2013).

1. Emergent Channels

Retail commerce is being reborn. Consumers decrease time with traditional touchpoints (Store, call centre and TV etc.) and increase engagement with newer, emerging ones (The web, mobile, social networks and LBSes, tablets etc.)

(See appendix #) The rapid expansion of sales and marketing channels-more social commerce, gaming commerce, and mobile-will continue.

Retailers have taken a multi-channel model and evolved into a cross-channel experience which let the customer use different channels to make decision and purchase. (ThoughtWorks, Inc., 2013)

Recognizing and leveraging the power of multiple channels while providing a seamless experience is critical for retailers. Rapid change requires retailers to balance channel implementation, capability implementation and technology refresh to achieve profit-sustaining returns.

Retailers struggled with constant pricing fluctuations by Amazon and other online retailers that were able to rapidly analyze sales data and adjust almost instantaneously to competitive conditions. (BrandZTM Top 100 Most Valuable Global Brands 2013)

2. E-CRM

Evolving technology and an ever increasing number of interactive devices is profoundly changing consumer shopping behaviour.(CBR)

Customers are seeking a true seamless omni-channel shopping experience. Customers prefer retailers with robust cross-channel mechanisms...