Webvan versus tesco-focus of our discussion on distribution

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ASSIGNMENT

Webvan versus Tesco We will use the grocery industry as the focus of our discussion on distribution, and in particular recent and ongoing attempts by companies to deliver groceries to the home. The Harvard Case, "Webvan" will provide us some background information on the industry. In 2001 Webvan went bankrupt, after spending $1.2 billion in startup costs. Peapod is still alive, but appears to be barely hanging on. In 2000, established grocery chain Tesco entered the online delivery market in Britain with a new e-grocer tesco.com, using a different business model. Whereas Webvan built huge automated warehouses in the suburbs to service customers in the city, tesco.com services customers from their already established grocery storefronts scattered throughout Britain. That is, when you order from tesco.com, a worker walks the aisles of an established Tesco storefront, the order is then assembled and sent via delivery truck to the homes of waiting customers. In the U.S., companies such as Albertson's and Safeway are testing the tesco.com model to see if it will be profitable.

Reference no: EM133671282

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