The Tesco.com Experience: Is Success at Hand?

Tesco currently lays claim to about one-fifth of the UK grocery market, and to take full advantage of the Internet as a sales channel, the retailing chain launched Tesco.com in the mid-1990s. What challenges did the “old economy” firm face as it added this “new economy” expansion? Albrecht Enders, Professor Tawfik Jelassi and Professor Charles Waldman illustrate its path, including the heated debate on implementation issues as it broke away from industry standards. This case presents significant issues for “old economy” firms who are opening Internet channels as part of a retailing strategy, and more specifically, the challenges in online grocery retailing. It raises key questions for logistics management, especially in electronic retail, and can be applied to a variety of e-related topics in marketing, business policy and/or strategic management.

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