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Title

E-Business Strategy Review Report for Tesco.com

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E-Business

Management Summary
The main purpose of this report is to review and analyse one of the worlds largest retail online
grocery in the UK, Tesco.com. The report would show the various E-business strategy used by
Tesco since the launching of their website in year 2000. It will show how Tesco has been using ebusiness to expand, to save and to increase customer service in the UK.
This report first shows a brief summary of the history of Tesco such as when Tesco was founded and
by whom, how Tesco got its name and when Tesco launched its website, Tesco.com. A SWOT
analysis was also conducted of to see their strength, which is their customer service, their weakness,
which is their high dependency of the UK and Europe countries, their opportunities which is the
growing demand for online shopping, music and video and lastly their threats which are their
competitors.
A PEST analysis was also done to access the market for Tesco.com, along with a competitor
analysis in which Porters Five Forces were used to analyse the treats that can take place with the
online grocery. It also, shows the e-business strategy that they have adopted and are planning to
adopt along with the legal and ethical issues that they must take into account when running an
online grocery site.
With their tagline Every Little Helps Tesco.com has proven to be the best when it comes to
customer service and has been very successful over the years, with extremely high profits that has
been increasing. Tesco.com needs to continue to striving for excellent service and good prices in
order to remain above their competitors.

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1.0 Introduction
1.1 Tescos History
Tesco was founded in year 1919 by Jack Cohen from a market stall in East London which made a
profit of 1 from the sales of 4 on his first day. Which in those day were considered to be a lot. In
1924 he created Tescos brand name from the initials of a tea supplier, Thomas Edward Stockwell
(TES) and the first two letters of his last name, Cohen (CO). He later opened of the first Tesco
named store in 1932. (Tesco PLC, 2012).
However, it was in year 2000 that Tesco launched its e-commerce business, Tesco.com, expanding
its range of products selling clothes, electrical and personal finance products, online. By September
2005 Tesco.com received 170,000 orders per week with sales of 401 million for the first half of the
year (Chaffey, 2009). Although Tescos primary dot-com operations are based in the U.K.,
particularly in the greater London area, Tesco has also successfully exported their dot-com strategy
to other countries including Poland, Czech Republic, Thailand and South Korea. (Wulfraat, 2014)
Tesco.com allows customers to place orders from any computer, tablet, smartphones and even
virtual shopping walls in subways. Customer has the option of click and collect or pick up later at
the local store drive thru or delivery at their door. (Wulfraat, 2014)

1.2 Products and Services offered by Tesco.com


Products
Grocery Items
Fresh Produce
Frozen Food
Tesco Direct
Books
DVDs
Electronics
Furniture
Wines

Services
Financial Services
Broadband Internet
Phone Services
Music downloads
Petrol
Electricity
Clothing
DVD rentals
Flight and Holidays
Club Card
Printing Services
Health Services
I.T Support
Beauty Consultation Services

Table 1.1 showing the products and services offered by Tesco.com (Tesco, 2014)

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Tesco
Direct
(2006)

Music
Download
(2004)

Grocery
(2000)

Phone
Services
(2003)

Clothing
(2005)

Beauty
Consultaion
Services
(2014)

Figure 1.1 showing the timeline of Tesco.com products & services

2.0 Situation Analysis


2.1 PEST Analysis
The PEST analysis is a business measurement tool that is useful for understanding market growth or
decline, and as such the position, potential and direction for a business. PEST is an acronym for
Political, Economic, Social and Technological factors, which are used to assess the market for a
business. (Chapman, 2014)
Political
Because of the rise in obesity and other health problems the UK government is considering the
introduction of Fat Tax. This is a tax that would be added to certain food item that contains more
than a certain percentage of saturated fat. (Griffith, OConnell, 2011) This can affect Tesco.com
negatively, since a rise in food prices could mean a drop in sales for certain food items. Customers
may choose a healthier food option, which may also affect Tesco.com positively by increasing the
sale of their healthy range of food items.
Economic
Over past few years the UK has been experiencing a downfall in their economy which has only
recently became stable showing slight growth. With this level of uncertainty existing in an economy
and with the austerity programmes on customer spending, customers would be looking for ways to
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curb their spending were possible. (Peston, 2015) This may affect Tesco.com positively since goods
bought online are most times cheaper than in store goods, causing an increase in their online sales.
This can also affect Tesco negatively since some customers may choose not to spend at all or spend
very little on item that they do not really need.
Social
With the current age we live in, people are becoming busier than before with work and personal life
and do not always have that extra time to go store to store shopping. This can be a big advantage to
Tesco.com since people now prefer the convenience and comfort of shopping at home. (Rigby,
2011) Especially the elderly that are becoming more technologically advance but are less mobile
and cannot move around as usual. This beats, having to face the heavy traffic on the roadways and
lowers the chances of customers being affected by crime. Online shopping can be a huge benefit to
them because goods are now delivered at customers door steps, therefore increasing sales at
Tesco.com tremendously.
Technological
We live in an era where technology is the norm. Everyone is using it, from the youngest to the oldest
and it is making our lives a lot easier. With this rise of technology and digital capabilities,
consumers are changing the way they shop. Customers want to be able to shop however, whenever
and wherever they want. They want to shop across store formats, on smartphones and on tablets.
They are no longer choosing just a simple trip to a store, but are making much more dynamic and
complex journeys to purchase. (Tesco, 2014) Tesco now has their online shopping mobile app that
allow customers to purchase goods and services right in the palm of their hands. It also allows your
phone to act as an electronic membership card that allows customer to scan their phones at the tills
to get discounts and obtain their loyalty points. (Tesco. 2014)

2.2 Competitor Analysis


Porters Five Forces would be used to analyse the threats that can take place with Tesco.com. These
five forces include:

Bargaining power of buyers


Bargaining power of suppliers
Threat of substitute goods and services
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Barriers to entry
Rivalry amongst existing competitors

Figure 2.1 showing Porter Five Forces Diagram (Meek, 2012)

Bargaining power of buyers


The internet has increased the bargaining power of the customers on the whole. This is because
there are many options available for the customers to choose from. Hence, influencing the price of
goods offered by different supplier. The internet has allowed customers are ability to shop around
from the comforts of their homes and compare the different prices offered by different suppliers,
choosing the good that is at the cheaper price. This can cause suppliers like Tesco.com, to adjust
their prices to that of their competitors or even lower. (Chaffey, 2009).
Buying power of suppliers
The threats arising from the suppliers of Tesco.com are far less than that of its customers, but still
needs to be considered. Many factors influence the bargaining power of the supplier, some would
include having more buyers than sellers in the market. This can affect Tesco.com since the supplier
can choose who they would want to do business it and at what price they want to sell their products.
If for instance one of the suppliers decides to sell Tescos competitor at a cheaper price, then this
would be an issues for Tesco.com since they would now have to drop their prices in order to remain
competitive. (Chaffey, 2009)

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Threat of substitute goods and services


Having substitute products and services can pose problems to Tesco.com especially if they are
cheaper. Currently Tesco has its own brand of grocery items such as bake beans, juices, wines which
can all be easily be substituted by the customer for another brand of products, causing a decreasing
in the companys revenue. (Chaffey, 2009)
Barriers to entry
This force shows how easy or difficult it is for new businesses to enter into the industry. This may
not be much of a threat to Tesco, since it may not be so easy to do because of the high set up cost.
But can pose a huge threat to Tesco.com since it is much easier for businesses to set up a big
warehouse and start up business online, since it is a lot cheaper to run online that in stores. (Chaffey,
2009)
Rivalry amongst existing competitors
This force is the major determinant on how competitive and profitable an industry is. In competitive
industries, firms have to compete aggressively for a market share, and this may result in price wars.
Even though these price wars may seem good to customers because of the low prices, it results in
low profits for businesses such as Tesco.com. (Jurevicius, 2013)

2.3 Demand Analysis


Demand analysis is the assessment of the demand for e-commerce services amongst existing and
potential customer segments. (Chaffey, 2009). As time goes by people are opting more for online
shopping because of it many benefits. Over the years Tesco.com has seen an increase in the amount
of customers shopping online.
Statistics shows that in the UK, there are currently 57,075,826 internet users, this makes up 89.9%
of the UKs population with internet access. (Internet live Stats, 2014). It also shows that 74% of
adults over the age of 34, 90% of young people between the ages 25 to 34 and 40% of people over
the age of 65 shops online in the UK. (Office of National Statistic, 2014). Tesco.com sells to
millions of customers weekly. The demand for online shopping has been increasing for Tesco.com.
This is seen by the increase in their online sales last year by 11% even though there was a decrease
in storefront sales. (BBC, 2014)
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Internet Usage in the UK

10.1

Internet Users
Non-internet Users

89.9

Figure 2.2 showing the percentage of the UK that uses the internet

Some of the barriers that would prevent Tescos in store customers from shopping online would be
that customers may not like the idea of waiting at home for an hour for goods that they did not
choose themselves, especially with fresh produce. (Ruddick, 2014)
In order to overcome this barrier, Tesco can encourage online customer by reassuring them that
quality goods would be delivered at their door steps.
De-Kare Silver ES Test
This is a test that is done to access the extent to which consumers are likely to purchase a retail
product using the internet. (Chaffey, 2009). The factors according to De-Kare Silver that are
involved in this test are:

Product Characteristics this access if the product need to be physically touch or tried on
before being bought.
Familiarity and confidence- this access the degree of confidence and familiarity the customer
has with the product.
Consumer Attributes- this access consumer behaviour with in terms of access to technology.

Out of a score of 50, products scoring over 20 is considered to have good potential. De Kare-Silver
states that any product scoring over 20 has good potential, since the score for consumer attributes is
likely to increase through time. Given this, he suggests companies such as Tesco will regularly need
to review the score for their products. (Chaffey, 2009)

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Products

Grocery Items
Fresh Produce
Frozen Food
Baby Items
Books
DVDs
Electronics
Wines
Furniture
Music downloads
Clothing
Health Services

Product
Characteristics
(10)
7
8
8
8
10
10
9
8
10
10
8
5

Familiarity and
confidence (10)
9
4
6
9
10
10
9
8
10
9
7
5

Consumer
Attributes
(30)
20
18
18
21
25
25
20
18
19
22
16
15

Total

36
30
32
38
45
45
38
34
39
41
31
25

Table 2.1 showing De Kare-Silver product scoring

2.4 SWOT Analysis


SWOT analysis is a relatively simple yet powerful tool that can help organizations such as Tesco, to
analyse their internal resources in terms of strengths and weaknesses and match them against the
external environment in terms of opportunities and threats. (Chaffey, 2009)

Internal

External

Strength

Weaknesses

Currently, Tesco is ranked the third

largest retail store in the world with a

UK and Europe, since shipping

market share of 27.28% which ranks

groceries from online purchases to

above all other stores in the UK.

another country may not be viable.

(Chaffey, 2009)
Tesco.com has
between

developed

themselves

and

trust

customer service.
Tesco.com offers

home

delivery,

within an hour to online customers

Online shopping may not be as


convenient for everyone, since it

their

means waiting at home, for goods that

customers by not compromising on

Tesco.com has a high dependant on the

you did not choose yourself. (Ruddick,


2014)

Fulfilling dot-com orders at retail


stores is highly inefficient and labourintensive. (Wilfraat, 2014)

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Opportunities

Threats

There is a growing online UK market


for music and video.
Increase opportunities in growing

competition.

markets such as India and other

Ocado. (Anderson, 2014)


Another threat that Tesco.com face is

international markets
There is an increase in the amount of

One of the major threats to Tesco is


Some

of

Tescos

competitors are ASDA, Sainsbury and

the takeover of the industry leader,

people that are buying online, this can

Walmart. Even though it is not likely

lead to great savings for Tesco,

to happen at this time it is always a

reducing overall cost.

looming treat for Tesco, since they


have all the necessary resources to put
Tesco out of business. (Edwards,
Steiner, 2012)

Table 2.2 showing the SWOT analysis for Tesco

2.5 TOWS Matrix


Strengths
Largest retail store in
the UK
Has gain customer
trust
Pioneer of online
shopping

Opportunities
Growing online
market for music and
video
Increase in the
opportunities in
growing market
Decreased in overall
business expense

SO

Place more emphasis


on online shopping
Focus more on the
growing online
market for music and
video

Weaknesses
High dependency in
the UK and Europe
market
Online shopping is
not convenient to all
shoppers
Fulfilling dot-com
orders at retail stores
is highly inefficient
and labour-intensive.
(Wilfraat, 2014)
WO
Seek to expand
Tesco.com, beyond
the UK market
Ensure that new
markets are properly
analysed before
venturing out
Open more dedicated
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dot.com depots
Threats
Competition
Business Takeover

ST

Maintain a higher
value than
competitors
Maintain strong
relationship with
customers and
suppliers

WT

Offer more incentive


for online customers
Continue to offer high
value at low prices

Table 2.3 showing a TOW Analysis for Tesco

3.0 E-Business Strategy


Tesco uses a mixture of bricks and clicks E-Business strategy. This is a mix of storefront and
warehouse operation in conjunction with online sales (Chaffey, 2009). The four key e-business
strategies that will be looked at for Tesco will be:

3.1 Business Model


Tesco business model explains what they do and how they deliver their core purpose for customers.
It is built up around four core retail activities, insight, buy, move and sell. Their key enablers make
them unique and help them to continually do these things better. Using their unrivalled insight to
understand what customers want, Tesco.com buy products and services from suppliers, move them
through there distribution network and sell them to customers. (Tesco, 2014).

Figure 3.1 showing the business model for Tesco.com (Tesco, 2014)
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3.2 Revenue Model


Tescos main source of online revenue is through direct sales. Tesco.com sells their own branded
grocery items along with other non-Tesco branded items. They also sells music and video which has
a high demand and has been bringing in a high amount of profits for the company.

3.3 Getting the right mix brick and click


Tesco is not just the largest retailer of good and services in the UK but is also the largest online
retailer in the UK. For Tesco, going online was not a problem, since they had already establish trust
between their customers. When Tesco launched its website in 2000, sales sky rocketed and by year
2005 online sales for the first half of the year were 401 million (Chaffey, 2009). Tesco now allows
customers to shop, anywhere, anytime, in stores and online. With their mobile app, Tesco allows
customers the convenience of shopping online right in the palm of their hands, this means that
customer no longer has to be in front of a computer or even enter a store to place an order. (Tesco,
2012)

3.4 Target market and OVP-tagline


Every Little Helps. has been Tescos OVP tagline for quite some time and has been the driving
force for Tescos low prices and high quality service. Tesco.com segments its customer according to
wealth and age. They divide customers into rich and poor by using data to personalise its website to
display items geared towards ones wealth. (Steiner, 2012).

3.5 Overall Strategy


Porter discusses the threats that companies face due to competition in the e-commerce market.
However, from the analysis that was done, one can see that even though suppliers has little
influence on the market, customer still has the most influence, with high bargaining power. However
to achieve continuous growth, Tesco.com can use the following growth strategies mention by Ansoff
and these are:

Market penetration where an existing product is used to achieve growth and increase market

share.
Market development where and an existing product is exposed to a new market.
Product development where a new product or service is created for an already existing
market segment.

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Diversification where firm create new businesses offering new products and services for new
market segments

4.0 Electronic Customer Relationship Management (ECRM)


Customer Relationship Management is very important to Tesco.com. CRM, are strategies that
companies utilizes to win over or retain and get back its customers. (Chaffey, 2009). There are four
marketing activities that CRM incorporates and these are:
Customer selection- Tesco.com selects their new customers through in store marketing along with
advertising which lures their loyalty card customers to try their online shopping experience.
Tesco.com uses their email marketing strategy to send customers promotional emails about goods
and services they sell online. They use the information on loyalty cards to gain information about
their different customer groups and send these emails according to each group buying record.
Customer acquisition- Some of the strategies Tesco.com uses to forms relationship with new
customers is by in store promotion and advertising. Also, by sending personal magazines to their
customers with various coupons. This encourages new customers to try their online shopping.
Customer retention- Tesco uses a commitment-based segmentation or loyalty ladder to retain
their customers. (Humby and Hunt, 2003) They use loyalty cards as a means of promotion to the
customers that uses their website. From data collected from these loyalty cards, Tesco is able to send
customer emails encouraging them to purchase again and they do this by using automated event
triggered messaging.
Examples of event triggers used by Tesco.com are:
Trigger event 1: First registers on Tescos site (does not buy anything)
Auto-response (AR 1: 2 days after e-mail sent offering phone assistance and 5 discount off first
purchase to encourage trial.
Trigger event 2: Customer makes their first purchase online.
AR1: Order is immediately confirmed
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AR2: An e-mail is sent five days after customer makes purchase, with link to an online customer
satisfaction survey asking about quality of service.
AR3: A direct mail offering tips is sent two weeks after first purchase, on how to use the 5
discount on next purchase. This is intended to encourage re-use of website.
AR4: A Monthly e-newsletter is sent to customers with online exclusive offers encouraging crossselling.
AR5: Bi-weekly alert with personalised offers for customer.
AR6: After two months - 5 discount for next shop.
AR7: Quarterly mailing of coupons encouraging repeat sales and cross-sales.
Trigger event 3: Customer does not purchase for an extended period
AR1: Dormancy detected reactivation e-mail with survey of how the customer is finding the
service (to identify any problems) and a 5 incentive.
AR2: A further discount incentive is used in order to encourage continued usage to shop after the
first shop after a break. (Chaffey, 2009)
Customer extension- Tesco.com ensures that customers comes back to shop on their site by
offering them discounts on new goods and on goods already bought online, as a way to encourage
them to continue shopping at their website.

5.0 Legal and Ethical Issues


5.1 Information Gathered Online
This determines the method by which products can be promoted and sold online. Governments, on
behalf of society, seek to safeguard individuals rights to privacy. (Chaffy, 2009) Tesco collects
information from its customers from their club card and when they visit their website, register and
buy products or services, take part in promotions, customer surveys, competition or contact
customer service. (Tesco, 2014) Information that are frequently gathered online are:
Contact Number- this consist of customers name, address, telephone number, email address etc.
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Profile Information- this is information about a customers characteristics that would be used for
segmentation, such as age, date of birth and sex.
Platform Using Information- this is information collected from site users when browsing through
different site. This is information on type of computer, browser and screen resolution used by these
site users.
Behavioural Information (on a single site) - This type of information includes purchase history of
customers
Behavioural information (across multiple sites) - This shows information on how a user accesses
multiple ads across sites.

5.2 Mason and Fletcher Ethical Issues


(Mason, 1986) Summarizes the ethical issues that are concerned with personal information into four
categories and these are:

Privacy what information is held about the individual? Tesco holds personal information
such as, customers name, address, email address, credit card information etc. Tesco.com
reassures customers that they will never disclose information collected from them to anyone

outside the Tesco Group except where consent is given (Tesco, 2012)
Accuracy is the information that was collected accurate? In efforts to avoid fraudulent

activities, information collected by Tesco from their customers must be accurate.


Property who owns the information and how can ownership be transferred? Data that is

collected by Tesco from the customer belongs to the customer.


Accessibility who is allowed to access this information, and under which conditions?
Information that is collected from customers can only be accessed by authorized persons,
solely for the purpose in which it was collected.

Fletcher (2001), however, provides an alternative perspective by raising these issues of concern for
both the individual and the marketer. This includes:

Transparency who is collecting what information and how do they disclose the collection

of data and how it will be used? Data should only be disclosed on a need to know basis.
Security how is information protected once it has been collected by a company?

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Liability who is responsible if data are abused? Tesco takes full responsibility for
customers personal information

5.3 Tescos Privacy and Cookies Policies


Data Protection and Privacy Law
Tesco collects a lot of personal information from their customers such as credit card and address
information. The information Tesco collects is securely store at a destination outside of the
European Economic Area. (Tesco, 2014) Failure of Tesco to protect any of the customers detail
could result in legal court matters, which would not be good for the companys reputation.
Intellectual property rights
All music, video that Tesco sells are protected by copyright, trademarks, database and other
intellectual property rights. Royalties are paid to the different owners by Tesco.com for the use of
their property.
Cookies
Tesco.com highly recommends the use of cookies when accessing their website. Cookies collect
information about your browsing and it helps for easier browsing of Tescos webpage. For all the
information collected by these cookies, Tesco.com reassures that none will be given to any third
party company for marketing. (Tesco, 2012)

6.0 Conclusion & Recommendation


6.1 Conclusion
In concluding one can say that Tescos E-business strategy is an effective one. Which is centred
mainly on customer service. Tesco has shown tremendously growth over the years, starting with just
a small market stall selling grocery items to hundreds of retail outlets and a dot.com store. Tesco
understands that customer service is most important and this as allowed them to work their way up
by gaining customers trust. They moved from selling grocery items to selling just about anything
online.

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6.2 Recommendation
Tesco.com has been doing extremely well. Even with the fall in Tescos profit for the last two years,
sales at Tesco.com has been on the raise. My recommendation for Tesco would be, to place higher
emphasis on their online service. They should continue to make their online shopping more
convenient to the all types of customers. We live in a world were technology is taking over and soon
enough in a few years times storefront might be extinct. So Tesco has to start putting things in place
to eventually run totally online.

References
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http://www.tescoplc.com/index.asp?pageid=11
Tesco PLC 2014, Privacy and Cookie Policy, Tesco, 9 October 2014, viewed 12 March 2015,
(website), http://www.tescoplc.com/index.asp?pageid=251
Wulfraat, M 2014, Case study: Tescos dot-com U.K. business model and lessons learned,
Canadian Grocer, October 03, 2014, viewed, 16 Feb 2015, (website)
http://www.canadiangrocer.com/blog/e-grocery-test-study-tesco%E2%80%99s-dot-com-u-kbusiness-model-and-lessons-learned-45135
Chaffey, D 2009. E-commerce and E-business Management, Strategy, implementation and Practice.
Financial Times Prentice Hall, England
Griffith, R & OConnell, M, 2011, A fat tax in the UK? Institute for Fiscal Studies, 14 October
2004, viewed 16 Feb 2015, (website) http://www.ifs.org.uk/publications/5712
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Feb 2015, (website) http://www.strategicmanagementinsight.com/tools/porters-five-forces.html
Internet live Stat, 2014, Internet Users by Country Internet live Stat, viewed 26 Feb 2015,
(website) http://www.internetlivestats.com/internet-users-by-country
Ruddick, G 2014, It's no good Tesco being the biggest if it doesn't know how to be the best, The
Telegraph 10 April 2014, viewed 1 March 2015, (website),
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Steiner, R 2012, Tesco to target customers according to their wealth by using their Club card data
to personalise its website, Mail Online, 25 June 2012, viewed 19 march 2015, (website)
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National Statistics 7 August 2014, viewed 10 March 2015, (website)
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http://www.bbc.com/news/business-31000413

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Rigby C, 2011, Tesco to extend compelling multichannel, Internet Retailing, 19 April 2011,
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Appendices

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Website Evaluation
Introduction
The purpose of this document is to evaluate five grocery related websites. One being Tesco.com
along with two other UK sites and two local sites. The four other sites that were evaluated besides
Tesco.com were:

www.Sainsbury.com
www.ASDA.com
www.Trinitrolley.com
www.Trinifood.com

These sites were evaluated depending on the following criteria and were scored out of 10, where 0 not available at all, 1 - extremely poorly represented, 10- extremely well represented
1.
2.
3.
4.

First Impressions
Navigation
Content
Making Contact

Findings and Analysis


First impressions- from the score sheet, Tesco ranked first with a score of 100, followed by ASDA
and Sainsbury, scoring 83 and 97 respectively. These scores were high because of its attractiveness
which was very inviting to users, their contact details were clearly visible and there is a feeling of
wanting more. Unlike Trinifood that score 54, the home screen layout did not look very inviting.
Navigation- ASDA scored the highest when it came to navigation by 75 points, followed by Tesco
and Sainsbury, both scoring 74. Unlike Trinifood, which ranked last on the evaluation sheet with a
score of 59, the size of their website it did not allow for easy navigation through web pages.
Content- For content, Sainsbury top the rank with a score of 78, followed by Tesco with 69.
Sainsbury had enough content, not too much to overwhelm visitors and not to little leaving them
with questions. Trinitrolley ranked second to last, followed by Trinifood which scored the least
amount when it came to content, because of the size of the site. Trinifood did not have a FAQ page
and unlike the other sites the level of interaction was very low.

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E-Business

Making contact- for this criteria, Tesco ranked first with a score of 48, followed by ASDA and
Sainsbury both gaining a score of 45 and 44 respectively. Tesco has an entire web page of contacts
numbers and forms for every department they had. This gave them the advantage over the other sites
that has contact numbers but very little. Trinifood ranked last again when it came to contact with a
score of 24 because there was one contact number available on the site and they were slow on
responding to messages sent via their form compared to the other sites.
Conclusion
From the total score of the evaluation sheet, Tesco ranked the highest with a score of 291, followed
by Sainsbury with 271, then ASDA with 282, Trinitrolley with 222 and lastly Trinifood with 172.
From the findings and analysis of both the local and the UK website, one can gather that the UK
sites are much better than the local. They are much larger, more user friendly and a lot livelier than
the local websites, when you visit those sites there is a feeling of wanting more. On the other hand,
visiting those local site makes you think twice before shopping, because it is boring, has little
content and because of the site has low popularity, it makes you question the security of the site and
its ability to conduct secure credit card transactions.

PEST Analysis Table


Political

Social

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E-Business

The introduction of Fat Tax


Increased prices on VAT and other
taxes

Economic
Falling economy can cause an increase
in the amount of goods customer buy
online since it is said to be cheaper

Customer now prefer the convenience


of shopping online and getting there
good delivered directly to their door.

Technological
More customers are choosing to
purchase online
Tesco is providing customers with
online mobile app

Table A1 showing an outline of PEST Analysis for Tesco

CC3003ST E-Business: Website


Evaluation
Score each website issue out of 10 where
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E-Business

0 is not available at all, 1 is extremely


poorly represented and 10 is extremely
well
Tesco

Sainsbury

ASDA

Trinitrolley

Trinifood

URL

10

10

10

10

Download time - size of home page

Look and feel readability

Need to download software

10

10

10

10

10

Home page on one screen (above the fold)

10

10

10

Unique Selling Point (USP) or Value


Proposition
Ability to take action (Key action point
KAP)
Feeling of wanting more - depth of site

10

10

10

Contact details

Credential validation - certifications,


associations etc.
Statement from management

10

10

10

100

83

97

74

54

Ease of use

Site map

10

10

10

Return to Home Page from any page

10

10

10

Internal search engine

Broken links

10

10

10

Text as well as graphic links (ALT tags)

10

10

10

Navigational links visible

10

10

10

Opens multiple windows

74

74

75

63

59

1. FIRST IMPRESSIONS

Total score for section


2. NAVIGATION

Internal links

Total score for section


3. CONTENT
Useful information

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E-Business

Level of interaction

Use of valuable graphics, animation, sound

Reviews, testimonials and certifications

Content in digestible quantity

10

10

Up-to-dateness

Available in multiple languages

Accessibility for the disabled

Terms and conditions

10

10

10

10

10

FAQs

10

10

10

10

Total score for section

69

70

65

48

35

10

10

10

10

Automatic email response

10

10

10

Personal email response

Use of online forms

10

10

10

Telephone contact number provided

10

Telephone call back offered

Total score for section

48

44

45

37

24

OVERALL TOTAL SCORE

291

271

282

222

172

4. MAKING CONTACT
Email and other details visible
Response time to enquiries

Table A2 showing the evaluation scores of 5 grocery sites

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E-Business

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