Tesco, Plc: "From Mouse To House" In Online Grocery Retailing
Abstract:
The case deals with a detailed look at the nature of decisions made by a U.K. grocer in moving from its traditional bricks and mortar business into the world of online grocery shopping. Tesco Plc. has been acclaimed as one of the most successful grocery chains in the U.K one that is making significant inroads into Europe and parts of Asia as well. Its approach of leveraging brick and mortar assets to widen its coverage to included online shoppers has often been held up as an exemplar in terms of market entry strategy. The case focuses on a systematic appraisal of the grocery industry and competition in the U.K. and an evaluation of the strengths and weaknesses of Tesco and how it may migrate its competencies to the online marketplace.
The case can ideally be used in a master's level business strategy class as well as a specialized offering in e-Business models or "new economy" issues. When used in either of those settings, the case can be used to illustrate:
- an analysis of industry context and how to identify the key drivers of industry level competition
- to explore the value in making market entry decisions where the nature of the market and customers closely match the business models that the company develops
- to explore issues of timing of entry and the associated aspects of first mover advantage
- to identify ways in which bricks and mortar companies might be able to leverage their asset base to trump the pure play retailers
