Uk Retail Grocery Case Study
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1. By referring to the case study, map out the strategic pathways adopted by ASDA, Sainsburys, Tesco and Waitrose and highlight the resources and competencies that helped each company to develop as an online grocery retailer.
The strategic pathways adopted by ASDA and their resources and competencies that helped them to develop as an online grocery retailer is:
Not pursuing internet retailing.
ASDA@home (an online shopping service) was launched selling a limited range of goods from only 32 stores.
Picking of goods was done in store
Built depots in key locations
Switched to supplying customers directly from their nearest participating store
Increase in online serviced provision
Improved customer service by increasing the number of delivery slots and product availability, as well as improving the sites usability
Geographically expand online retailing to more services and a larger market share
The strategic pathways adopted by Sainsburys and their resources and competencies that helped them to develop as an online grocery retailer is:
No online presence
Wine Direct mail order service
Online services were launched and tried from seven stores
Online services were expanded to over 30 stores
Offered their channel not just as a shopping channel but also an informational channel
Launched business-to-business initiative aimed to reduce cost
Streamlined systems and improved product availability
Re-launched website to improve business-to-consumer solutions
Opened highly automated picking centre to serve customers in the M25 area
Created a joint venture with Carlton TV for an interactive shopping experience
Expanded online shopping service to cover 50% national coverage
Combined warehouse and in-store picking systems to expand coverage
Expansion of store based picking streamlined logistical cost and reduced the cost of order fulfillment
The strategic pathways adopted by Tesco and their resources and competencies that helped them to develop as an online grocery retailer is:
No online presence
Set out with a goal to be the worlds biggest online grocery store
Launched online grocery store
Goal was met and Tesco offered a wide range of products to 90% of the UK
Online shopping service Tesco.com was launched to operate as an independent subsidiary and offer many non-food products
Developed a sophisticated semi-automated in-store picking service which was supported by local refrigerated delivery vans
Offered online shopping to 91% of the UK population using 300 of its stores to support operations
Developed specialized services for niche home markets
Continues focus on upgrading its technology in order to streamline services
Readjusted their service model to adjust for growth of Tesco.com by opening dedicated online warehouses in areas where only shopping was thriving
Diversified and expanded online portfolio
Developing Tesco Direct
The strategic pathways adopted by Waitrose and their resources and competencies that helped them to develop as an online grocery retailer is:
Office based ordering system
No online presence
Purchased an e-commerce grocery business to expand online services for consumer markets
Created new online brand Ocado a warehouse-based grocery shopping operation
Waitrose Deliver was introduced to offer online purchasing from 33 waitrose stores
Added more areas of service coverage
2. Discuss the extent to which Tesco has achieved a competitive advantage through superior IT resources.
Tesco achieved a competitive advantage through superior IT resources by:
Promoted services by creating more access points for consumers to access