The Tesco.com Experience: Is Success at Hand?

Published 16 May 2002
Reference 5019
Topic Strategy
Industry E-Commerce
Region Europe
Summary

The case focuses on opportunities and challenges for a traditional, bricks-and-mortar retailer to use the Internet as an added channel. A major implementation issue, which raised a heated debate among retailers, concerns Tesco.com’s order fulfilment approach, based on in-store picked (rather than dedicated warehouses). It also insists on how can one make Internet retailing a profit-making story.

Teaching objectives

Better understand how to optimise the mix of bricks and clicks in a retailing strategy Be able to address Internet-based retailing as a business, not a technological issue Recognise the critical importance of operations and logistics in e-retailing Realise that in e-retailing, profit-making results from well-coordinated multi-functional implementation

Keywords
  • Internet
  • Retailing
  • Logistics
  • Business model
  • Business-to-consumer
  • Bricks and clicks
  • Customer service.