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Published by:
Stanford Business School (2001)
September 2001
11 pages
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In 2001, while on-line grocery services such as Webvan, Peapod, Streamline, and Homegrocer.com were suffering huge losses, merging to stay alive, and going out of business, Britain’s largest grocer, Tesco PLC was a notable exception. This case describes the development of Tesco, and the company’s on-line business. Of particular interest is the company’s method of distribution, by fulfilling on-line orders by picking goods from existing stores as opposed to building dedicated warehouses as done by Webvan. The case asks whether the on-line business model Tesco developed for the UK could be successful in the United States. The case was developed to be used together with 'Webvan: The New and Improved Milkman'.


Electronic commerce; Consumer goods; Internet marketing; Consumer products industry; Distribution; Food supply; Sales strategy
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