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Compare Webvan Tesco Information System Strategy Essay

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1. IntroductionWebvan was an online delivery business which mainly delivery grocery products in USA that went bankrupt in 2001. However, Tesco is now a largest chain of supermarket in Britain. This report is to critically evaluate the reasons why Tesco succeed in their online delivery business but Webvan did not. Also, this report will suggest appropriate ways for Tesco to measure their online business performance that help Tesco to manage their online business and customer satisfaction levels. (source: wikipedia - webvan & Tesco)2. Comparison between Webvan and Tescoa. Percentage focus on on-line tradeWebvan is a popular retailer in US that provided 100% trade on the internet for the customers. In contrast, Tesco is the largest chain of supermarket in Britain that mainly provides traditional trade in store and internet trade only occupied about 10 % of their total profit. Tesco only regards these online businesses as a value-added service for their original customers and also attract some new customers from that channel.

b. Brand imageCompare to Tesco, Webvan is an unpopular online retailer that provides online trade service to customer in USA. Webvan does not have previous selling record or goodwill.

In contrast, Tesco has been principally a food retailer in the UK, in a mature market that has grown little in the last 20 years or so before start their online trade So, their brand are popular than Webvan.

c. Target CustomerWebvan target customer mainly including some new technologists (e.g. who job related to technology/computer); time starved shoppers (people who are very busy all the time); disable people (e.g. people who can't walk); price insensitive shoppers.

Tesco's target customers is generally family for all aged (e.g. Clubcard even for kid); someone who does not have much computer skills (e.g. housewives ad older people). This can be proved by Lynne Pullam, who is the housewives before employed by Tesco as internet consultant. Source: (Strategies for e-business: creating value through electronic and mobile commerce: concepts and cases)d. Management Strategy1. Operational StrategyWebvan delivery model:Webvan build vast infrastructure containing 330,000 square foot hi-tech automated warehouses to effectively store and deliver merchandise to customers. Webvan implement multiple warehouse models to close to market that reduce lack stock situation. Webvan used hub-and-spoke model, similar to FedEx and UPS for delivery. Customers ordered online and chose a 30 minute window for delivery. At one time featured 20,000 products and prepared meals for sale.

Webvan operation SystemSource:,1,Webvan.comTesco delivery model:Tesco has kept the operations of grocery delivery relatively simple by using existing assets rather than building hi-tech warehouses. Online orders are filled by Tesco employees at the nearest Tesco store or their single warehouse, then picked up and delivered via van. Usually, the product would delivery to customer within the range of 2 hour (e.g.11am-1pm) in the chosen delivery day. Tesco operation ...

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