The case illustrates a story surrounding a U.K based grocer, who has recently thought about shifting his resources from the manufacturing of traditional bricks and mortar into online grocery experience. Tesco Plc.‘s remarkable performance in the industry has made it one of the leading grocery chains in the U.K and thus has allowed the organization to mark its presence into Europe and majors parts of Asia. In order to successfully enter the online grocery industry, Telco Plc leveraged the assets and earnings of the mortar business, ensuring a sound financial backup and thus setting itself as a recognized example for market entrance strategy. The case starts with a deep analysis of the grocery industry and the heightened competition in the market. Moreover it wonderfully compares the company’s strengths and weaknesses and how each will impact or can be put use by the company, when making an entrance in the online grocery venture. Teaching Direction: the case is extensively developed and thus is well suited for a master level business strategy class, it can be used when covering critical topics like E-Business Models and “New Economy Issues”. Irrespective of the topic being covered, the case can assist in understanding the following situations: 1) Analyzing an industry by identifying and accounting the key drivers of the industry level competition 2) Exploring the varying nature of the market entrance decision while consolidating the market and the customers in formal business models 3) developing an understanding of the issues pertaining to the timings of entrance and the impact of first mover advantage 4) identifying the key ways through which a mortar business assets can be leveraged for ensuring success in the retailing industry.
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