Overview of Company
Tesco Public Listed Company is an international supermarket chain where is located in United Kingdom and the founder of Tesco was Jack Cohen. It is not only the largest retailer in United Kingdom as well as international. Basically, Tesco is specialising in fast moving consumer good. It is selling food and non-food products. Besides that, Tesco started to make a breakthrough by opening more companies in 1994. Subsequently, in the year ending February 2005 its international operations contributed for more than 20% of sales or about 7 billion pounds. Tesco began its operation in more than 12 countries and Malaysia was one of them operated in 2002. In fact, Tesco was the first retailer started operating on the internet in the UK since 1994 as well as offering online shopping service in the world since 1996. Additionally, Tesco already started such high-technology operations in the Republic of Ireland and South Korea. Tesco disclosed its 2005 annual report had 300 stores within United Kingdom and managed to serve 98% of the population. Tesco received at least 120000 orders per week and 1000 local delivery vans were able to deliver for 1 million households. In the financial year ending 26 February 2005 it recorded online sales up 24.1% to 719 million pounds and profit up 51.8% to 36 million pounds. (solarnavigator.net, 2007) Until December 2010, the share price of Tesco rise till 433.40p.
New Product Service
Tesco Online Shopping has become popular in UK. Online shoppers are able to receive countless home deliveries of food, non-food, service and more. Grocery online shopping can be as simple as shopping at the supermarket. (news.idealo.co.uk) Therefore it is a must to implement online shopping in Malaysia since South Korea and Republic of Ireland already began. In 2010 there are already 39 Tesco stores in Malaysia. (solarnavigator.net, 2007) However, there is no Tesco Online Shopping in Malaysia. So it definitely will be a continuous innovative service for consumers in Malaysia. Customers can view the food and non-food products at Tesco Online Store website. After ordering the products, customers will receive them by being at home. As a result, it is entirely convenient and save time for Malaysians to access Tesco online shopping.
The first introduction of Internet Service Provider (ISP) JARING in Malaysia by 1990. Following by TMNET in 1996 and it show significantly rise of Internet usage in Malaysia. Initially, there were barely 90 internet users only. However, there was an uptrend till 50716 in 1996. After a couple of years, it achieved 2 million in March 2002 which meant 21 percent of Malaysia’s population of 22.2 million people. According to the research, at least 25% of the Malaysian population will have internet access by 2005. Furthermore, a research by International Data Corporation (IDC) Asia-Pacific shown that, the future online shopping in Malaysia is shining brightly and potential. Following by the estimated sales revenue triggered by Internet commerce in Malaysia is anticipated to rise from US$15 million in 1998 to US$46 million in 1999 to US$1.57 billion in 2003. This is because there is an enormous growth in the number of PCs in Malaysia. (Chua Phaik Harn.A, Khatibi.A, Ismail.H, 2006) In 2010, the population of Malaysia is estimated 28 million. So far, Malaysia are a developing country and the average of income per person is middle class. Tesco online shopping can be considered to begin in urban areas of Malaysia like Selangor and Kuala Lumpur. This is because both states have the most Tesco stores and 10 million population. Therefore, in order to attain successfully in Tesco Online Shopping Malaysia, Tesco should target their market between 21 to 45 years old people and those consumers are middle class.( aliran.com) This is because most of the Malaysians are looking for cheaper alternatives and value for money, so the products must be affordable and cheaper....
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