Problems Faced by Tesco to Attain Competitive Advantages - Essay Example

Research Proposal Topic: “Problems faced by Tesco plc to attain competitive advantages due to the advent of aggressive e-commerce trends in the global retail market” Table of Contents Introduction 3 Literature Review 3 Identification of the Problem 6 Data Collection 7 Conclusion 8 References 9 Bibliography 13 Appendix: Questionnaire 14 Introduction Ecommerce has been the third wave that has brought in massive revolution and has influenced huge developments into the business world. The improvement that has been brought into the system, with the implication of ecommerce, has in turn enhanced the ability of the business to trade better. Emergence of ecommerce has also developed the modes of transaction in the market, wherein it is observed that the different businesses has facilitated its development of ecommerce and enhanced its mode of operations (Gangeshwer, 2013; Molla & Licker, 2001). The different interventions of ecommerce over the traditional modes of business has further enhanced credibility of businesses and opened further ways into the international market. Moreover, it has opened windows for the organization to serve to the world class clients and develop their international client base (Ahmed & Ibrahim, 2011). In this context, the paper elaborates on the development that has been incorporated by Tesco Plc in order to attain the desired degree of competitive advantages, with the advent of aggressive e-commerce trends, introduced into the global market. Literature Review The introduction of ecommerce has inflicted challenges among the different modes of businesses. Contextually, Maniam & et. al. (2012) states ecommerce to have introduced a new phenomenon that involves the reduction of capital investment and in turn, developed abilities of the businesses to provide services to the international clients. Eid (2011) accordingly states that the explosion of technology and the incorporation of the virtual market have enhanced the need of ecommerce into the market. In agreement, Teece (2010) commented on the long-range business planning that ecommerce has been providing to the businesses. The traditional balance of global economy has changed and has created a separate balance between the traditional relationship of the suppliers and the consumers (Maniam & et. al., 2012; Teece, 2010). According to Hasan & Harris (2009), the different modes of incorporating of technology have in turn influenced the development of the market and have further, triggered changes within the economy. Creation of value has been a sole requirement of the present generation (Hasan & Harris, 2009). Murphy & Narkiewicz (2010), with the inclination of technology and different value creation will be possible and would enhance ability of the market to provide quality services. It is in this context that Ndyali (2013) stated about different steps that are taken by the ecommerce business, which have in turn, influenced the development of the global market and has effectively met the needs of the present day consumers (Ndyali, 2013). This is further noted that the different needs of the technology savvy generation could only be met with the development of ecommerce (Moghavvemi & et. al., 2012). According to Moghavvemi & et. al. (2012), increasing globalization and the rapid development of technology has imposed serious challenges to modern organizations in order to develop the organization and enhance its market potentials in a dynamic way. Emphasizing a similar aspect, Mohamad (2009) commented on the widespread use of the internet and development of different technologies to meet the elated demands of the consumers. Furthermore, the different strategic development that was integrated into the system is observed as having a huge impact on the healing of the different factors associated with the same. Halawani & et. al. (2013), ecommerce has been imposing huge impacts on the development of the different concepts of the business. However, Niranjanamurthy & Chahar (2013) argued that the different ecommerce systems need to be entailed with an amount of security. The need for security among the consumers is again observed to be having an impact on the development of the different attributes of services (Niranjanamurthy & Chahar, 2013). Drawing upon inferences from the same notion, Efendioglu & et. al. (n.d.) has elaborated on the development of socialization that has further enhanced the need of the business to diversify its products and enhance the credibility of the business thereafter. It is in this context that Jebur & et. al. (2012) states that the different information interchange taking place between the modern organizations today, are acting as a huge advantage over the other modes of businesses, functioning on traditional models, rather than being reliant on the contemporary model ecommerce. With substantial access to the global as well as the retail market, ecommerce has been acting as an effective base to develop credibility of the sector in the long-term (Jebur & et. al., 2012). In accordance, Zafar & et. al. (2014) commented that implementation of ecommerce has fundamentally changed the business and has enhanced the ability of the organizations to perform better, while Augusto & et. al. (2012) were of the view that the strategic changes incorporated by the market to develop a competitive advantage of ecommerce over the traditional market has a major role in developing the trading practices effectively. It is further noted that the different trading means practiced in the ecommerce helps in developing the business to a larger domain without investing greater amount of capital (Jebur & et. al., 2012). Stating precisely, Ndyali (2013) reveals that the implementation of ecommerce has influenced the market to allow the local consumers to sell goods within the international domain attaining higher competitive advantages. According to Murphy & Narkiewicz (2010), with an integrated system, the organizations can cater services to the different consumers and enhance their ability to trade better. Conversely, Moghavvemi & et. al. (2012) argued this particular aspect to have presented a vital challenge for the large retail firms, as the smaller firms can effectively develop their markets and provide services to the international clients through ecommerce, in the current era. Identification of the Problem Tesco Plc was incorporated in the year 1919 in London. Since its inception, the company has been catering services to the masses in a consistent manner. The company has, in the present day, expanded its operations across 12 countries. The company has even emerged as a huge retail giant and has been enhancing its business through ecommerce. It has been observed that mostly all the companies are planning to develop their peripheral through online marketing strategies and have developed their businesses effectively in the current phenomenon, dealing with economic, geographic as well as social barriers (Tesco Plc, 2014). This is because the development of ecommerce has emerged as a huge challenge for overall market enrichment. The retail invention of ecommerce has also developed the different businesses and enhanced the ability of the firms to provide services with greater quality to the stakeholders. Tesco Plc has been successfully catering its services to the different consumers located in various nations through its online retail stores. This is observed that the company, to develop its competitive advantages, has been enhancing its sustainability through the adoption of different approaches of ecommerce (Tesco Plc, 2013). Its development into the market, incorporated by the ecommerce, is observed to be having a positive impact on the different consumers. This further reveals that the consumers are opting for online services owing to the fact that they can avail larger amounts of the goods at cheaper rates to select from a larger variety. This has further inflicted a threat on the retail service provider to meet with the needs of their consumers in an effective manner (Tesco Plc, 2011). Tesco Plc, like all other organizations, has been developing its effective ecommerce business to cater services to the online consumers. The company has been facing severe problems to meet with the challenges of different strategic changes that are being incorporated within the system to develop the global image. The new horizons opened up by the different organizations, are also observed to be imposing huge challenges on the company to maintain its desired competitive advantages (Tidd & et. al., 2005). Moreover, the changing trends of the global market and the diversity observed in the demand of the consumer are also having a huge impact on the different strategic developments incorporated within the organization. Furthermore, Tesco plc, in order to enhance competitive advantages, have been enhancing its adaptability with the inculcation of changing technologies to meet with the demands of the consumers (Tesco Plc, 2011). Data Collection To attain the determined objectives of this research, primary data will be collected through the use of a questionnaire survey. The data will be collected among the staff and the managers of Tesco Plc, as this would help in developing a better insight towards the issue. Moreover, to increase the authenticity of the data, a survey will be conducted among the staff and managers of Tesco. The sample has been accordingly selected from the population of the workers associated with the organization, as they those who will be well acquainted with the problem that the organization is facing at large. The questionnaire will contain around 20 close-ended questions. To be noted in this regard, the close-ended questions have been framed so that the data collected could be aligned with the objective of the research. Furthermore, the questionnaires would be framed in such a manner that it does not disclose the personal identity of the respondents and help in maintaining ethical considerations needed for the research (Fanning, 2005). Conclusion Tesco Plc has been managing its competitive advantages by effectively managing the different needs of the consumers. However, the changing needs of the society and the technical developments have been imposing significant impacts on the development of the different strategic implementation processes. The company is facing huge threats of the dynamic environment and the ever-changing technical development. Moreover, the diversified demand of the consumers and different challenges imposed by the other organization has been creating huge threats to the company. Moreover, the company, in order to develop its competitive advantages, has been much emphasized towards enriching the consumer base, by catering to greater services of the consumers. The changing tastes and preferences of the consumers are even creating a huge impact on the development of effective strategies. Nevertheless, considering the fact that the company has been effectively managing its consumer base by meeting with the different needs of the consumers and implementing strategic development, the various facets affecting its strategic abilities in retaining sustainability being in competition with ecommerce firms will be elaborated in this study. References Augusto, R. H. & et. al. 2012. Competitive Advantages: the E-commerce as a Strategy for Competitiveness in the Retail Market. International Journal of Engineering Research and Development, Vol. 5, Iss. 1, pp. 60-66. Ahmed, A. A. & Ibrahim, D. S., 2011. Potential E-Commerce Adoption Strategies For Libyan Organization. International Journal of Information and Communication Technology Research, Vol. 1, No. 7, pp. 321-328. Eid, M. I., 2011. Determinants of E-Commerce Customer Satisfaction, Trust, And Loyalty In Saudi Arabia. Journal of Electronic Commerce Research, Vol. 12, No. 1, pp. 78-93. Fanning, E., 2005. Questionnaire Design. Practical Assessment, Research & Evaluation, Vol. 10, No. 12, pp. 1-14. Gangeshwer, D. K., 2013. E-Commerce or Internet Marketing: A Business Review from Indian Context. International Journal of u- and e- Service, Science and Technology, Vol. 6, No. 6, pp. 187-194. Hasan, M. & Harris, E., 2009. Entrepreneurship and Innovation in E-Commerce. Journal of Achievement in Materials and Manufacturing Engineering, Vol. 1, Iss. 9, pp. 92-97. Jebur, H. & et. al., 2012. E-Commerce Reality and Controversial Issue. International Journal Of Fundamental Psychology And Social Sciences, Vol. 2, No. 4, pp. 74-79. Maniam, B. & et. al., 2012. E-Commerce Best Practices: How to Achieve an Environment of Trust and Security. International Journal of Innovation, Management and Technology, Vol. 3, No. 4, pp. 396-401. Moghavvemi, S. & et. al., 2012. Competitive Advantages through IT Innovation Adoption by SMES. Social Technologies, Vol. 2, No. 1, pp. 24-39. Mohamad, R., 2009. Electronic Commerce Adoption in SME: The Trend of Prior Studies. Journal of Internet Banking and Commerce, Vol. 14, No.2, pp. 1-16. Ndyali, L., 2013. Adaptation and Barriers of E-commerce in Tanzania Small and Medium Enterprises. Developing Country Studies, Vol. 3, No. 4, pp. 100-105. Niranjanamurthy M. & Chahar, D., 2013. The study of E-Commerce Security Issues and Solutions. International Journal of Advanced Research in Computer and Communication Engineering, Vol. 2, Iss. 7, pp. 2885-2895. Molla, A. & Licker, S., 2001. E-Commerce Systems Success: An Attempt to Extend and Respecify the Delone and Maclean Model of its Success. Journal of Electronic Commerce Research, Vol. 2, No.4, pp. 131-141. Murphy, R. & Narkiewicz, V., 2010. Electronic Commerce and the Value Proposition. The Journal of Human Resource and Adult Learning Vol. 6, No. 1, pp. 99-105. Teece, D. J., 2010. Business Models, Business Strategy and Innovation. Long Range Planning, Vol. 43, pp. 172-194. Tesco Plc, 2014. Annual Report and Financial Statements. Tesco At A Glance. [Online] Available at: http://www.tescoplc.com/files/pdf/reports/ar14/download_annual_report.pdf [Accessed November 28, 2014]. Tesco Plc, 2013. Annual Report. Working To Make What Matters Better, Together. [Online] Available at: https://files.the-group.net/library/tesco/annualreport2013/pdfs/tesco_annual_report_2013.pdf [Accessed November 28, 2014]. Tesco Plc, 2011. Corporate Responsibility Report. Media [Online] Available at: http://www.tescoplc.com/media/60113/tesco_cr_report_2011_final.pdf [Accessed November 28, 2014]. Tidd, J. & et. al., 2005. Challenges in Retail Innovation Aspects of Innovation in Tesco plc’s Market Entry into the USA. Tesco PLC Press Release. Online] Available at: http://www.iande.info/wp-content/uploads/2011/03/Tesco.pdf [Accessed November 28, 2014]. Zafar, F. & et. al., 2014. Use of ICT and E-Commerce towards Achieving Competitive Advantages. European Journal of Research and Reflection in Management Sciences, Vol. 2, No. 1, pp. 1-10. Bibliography Botha, J. & et. al., 2008. Managing E-commerce in Business. Juta and Company Ltd. Funabashi, N. & Grzech, A., 2005. Challenges of Expanding Internet: E-Commerce, E-Business, and E-Government. Springer Science & Business Media. Karake-Shalhoub, Z. & Qasimi, L. A., 2007. The Diffusion of E-commerce in Developing Economies: A Resource-based Approach. Edward Elgar Publishing. Lehaney, B. & et. al., 2011. Business Information Systems and Technology: A Primer. Routledge. Manzoor, A., 2010. E-Commerce. Lambert Academic Publishing. Shaw, M., 2006. E-commerce and the Digital Economy. M.E. Sharpe. Appendix: Questionnaire 1. How long have you been working with Tesco? Below 1 years 1-2 years 2-4 years Above 4 years 2. Are you aware of the concept of ecommerce? Yes No 3. How do you think ecommerce can yield greater benefits for companies? ____________________________________________________________________________________________________________________________________________________________ 4. Can you relate the ecommerce concept with Tesco’s operational strategies? Yes No 5. Do you believe that Tesco’s strategies have been influenced by ecommerce initiatives taken by its rival firms? Yes No 6. How will you rate the influence of ecommerce initiatives taken by Tesco’s rivals, affecting its strategies? No effect Moderate effect Significant effect Most prominent effect 7. What has been Tesco’s standpoint to deal with such issues and obtain competitive advantages? It has been unresponsive It has taken aggressive measures It has been playing defensive 8. Do you think that the standpoint taken is justified? Yes No 9. Do you think Tesco should also get involved in ecommerce, as aggressively as its competitors have? Yes No 10. What will be your recommendations for Tesco to obtain competitive advantages, when facing challenges from ecommerce retailers? _________________________________________________________________________________________________________________________________________________________ Read More