How does Tesco maintain its lead in the online grocery market Assignment

How does Tesco maintain its pass on in the online market market - subsidisation ExampleAgainst this background, this essay seeks to critically evaluate the measures implemented by Tesco in order to maintain its lead in the online grocery market. The paper starts by outlining the historical background of the supermarket chain this is followed by a expand analysis of how it harnesses the use of the internet in its operations. Background information about Tesco According to Datamonitor (2004), Tesco PLC is the largest food retailer in the UK and it operates around 2,318 stores institutionwide where 1,878 stores atomic number 18 located in the UK. The supermarket chain also operates stores in the backup of Europe and Asia and it is headquartered in Hertfordshire, the UK. The compevery is comprised of 367,000 employees demesnewide (250,000 of them in the UK), sales of more than ?37billion and it has an estimated 30 % of the market constituent in the grocery industry in the UK. Ho wever, Paton (2005) suggests that Tesco now ranges far beyond food, given that it now offers run which include banking, flower delivery, online diets, legal advice, DVD rental and telecoms. Tesco prides itself in training and retaining talented workers despite criticisms by other sectors of the society. Technological factors Technological development in ICT has immensely contributed to the positive growth of the organisation, especially through and through the use of the internet. For instance, online shopping has significantly improved the operations of the organisation given that the bulk of its customers can draw their short letter in the comfort of their homes. The supermarket chain has fully harnessed the use of the internet in its online grocery market. The supermarket chain is comprised of Tesco.com, a wholly-owned subsidiary offering a complete online service, including tescodirect.com and tesco.net (Datamonitor, 2004). The company is also in a better position to maintain its lead in the online grocery market because it offers a range of online pecuniary services. According to information obtained from (http//www.essaycoursework.com/modelanswer/business/help/pestle/tescos.php, ND), Tesco.com is regarded as the worlds biggest online supermarket and it is believed that it generates sales expenditure over ?577 million every year. There are different factors that contribute to the success of Tescos online business. peculiarly designed website Through the use of a specially designed website, Tesco is able to appeal to the interests of many customers as possible regardless of their geographical location. It acts as a global store whereby people from all corners of the world can make purchases online which is a great advantage for the organisation. The other reason for its success in online business is that its website has a catalogue of every product offered, which makes it relatively easier for the customers to do online shopping in the comfort of the ir homes without any hassle. The website is user friendly given that it is easier to navigate in search of different products. Research has shown that there are more than one million households that use the companys online services across the whole world and this is seen as a competitive advantage to the company since it is better positioned to receive more revenue from its operations (Datamonitor,