ASSIGNMENT 3
Unit 1: Exploring Business
E.P7 Explore how innovation and enterprise contribute to the success of
business.
Innovation is when a business or organisation introduces a
new product or service, which they may use to improve the
existing one.
There are three types of innovation that businesses may
experience.
1. Product Innovation - Product Innovation is changing a
product that already exists. E.g. Own brand, Finest
2. Process Innovation - Process Innovation is changing the process of production
that already exists. E.g. Online shopping
3. Service Innovation - Service Innovation is changing the way a service is provided.
E.g. Home delivery
Innovation within Tesco
Within Tesco, they have an innovation process. Tesco has two sources of input which they
need to look at before introducing any new products or services. This includes the customer
needs and future forces. The future forces include “technical, societal, fashion and
demographic trends.” Then, as a business, they discuss and communicate what would be
the best ideas for Tesco. Before making the final decision, Tesco ensure it fits their
customer’s needs.
https://www.destination-innovation.com/the-innovation-process-at-tesco/
Tesco have made several changes to how the company is run and what they offer to their
customers. The company has put these changes into place to improve how the company is
run. By introducing new products and services, it has gained Tesco more customers. As a
result, this will ensure Tesco stay successful and it will generate profit. It is important that
Tesco do this because it helps maintain the customers satisfaction. The company has three
main competitors, including, Sainsburys, ASDA and Morrisons. Overtime, each supermarket
would have introduced new products and services to attract customers.
Due to new technology being introduced, out of the four supermarkets, Tesco was the first
to introduce online shopping and self-checkouts. This allowed customers to have different
experiences when shopping with Tesco. The company has put these strategies into place to
make shopping with them easier and more accessible. This may be for customers who may
struggle to get to one of Tesco’s stores or this may be good for customers who prefer to
shop online.
, Self-checkouts –
Self-checkouts first got introduced in 2003 by Tesco.
They help Tesco because it allows their customers to
have more of a quick and easier experience when
shopping. As well as it helps their customers, it helps
the staff as it saves time. The self-checkouts allow
customers to purchase their products independently,
without any staff. However, Tesco ensure that there is
always staff managing it, just in case customers need support. As a result, they will shop
more at Tesco. Due to this, they will gain more customers and profit.
Online shopping –
Tesco was the first supermarket to introduce online
shopping in 1996. This has helped Tesco maintain
their customers satisfaction because this has allowed
their customers to have easier access to Tesco.
Customers have more time to chose what they would
like to purchase when shopping online. This makes
shopping online much easier and customers will have
easier access to all of Tesco products instead of
having to find it within the store.
There are two other services which are related to shopping online. Tesco offer them to their
customers so that they have the best experience when shopping with Tesco. When Tesco’s
customers shop online, they are either going to have their shopping home delivered or they
may choose to pick it up from the store. This is good that Tesco have offered a few ways in
which their customers can choose which way suits them best.
Home delivery –
Tesco offers home delivery to their customers. They
introduced this service in 1996. This is an effective
way of shopping for the customers who may struggle
to get to a Tesco store, this could be due to a
disability or any of reason. This helps Tesco to gain
more customers. This allows Tesco to stay successful
due to the increase in profit. Furthermore, as Tesco
are offering a range of ways that customers can shop, the customers will like this and will
therefore shop at Tesco more often.
Unit 1: Exploring Business
E.P7 Explore how innovation and enterprise contribute to the success of
business.
Innovation is when a business or organisation introduces a
new product or service, which they may use to improve the
existing one.
There are three types of innovation that businesses may
experience.
1. Product Innovation - Product Innovation is changing a
product that already exists. E.g. Own brand, Finest
2. Process Innovation - Process Innovation is changing the process of production
that already exists. E.g. Online shopping
3. Service Innovation - Service Innovation is changing the way a service is provided.
E.g. Home delivery
Innovation within Tesco
Within Tesco, they have an innovation process. Tesco has two sources of input which they
need to look at before introducing any new products or services. This includes the customer
needs and future forces. The future forces include “technical, societal, fashion and
demographic trends.” Then, as a business, they discuss and communicate what would be
the best ideas for Tesco. Before making the final decision, Tesco ensure it fits their
customer’s needs.
https://www.destination-innovation.com/the-innovation-process-at-tesco/
Tesco have made several changes to how the company is run and what they offer to their
customers. The company has put these changes into place to improve how the company is
run. By introducing new products and services, it has gained Tesco more customers. As a
result, this will ensure Tesco stay successful and it will generate profit. It is important that
Tesco do this because it helps maintain the customers satisfaction. The company has three
main competitors, including, Sainsburys, ASDA and Morrisons. Overtime, each supermarket
would have introduced new products and services to attract customers.
Due to new technology being introduced, out of the four supermarkets, Tesco was the first
to introduce online shopping and self-checkouts. This allowed customers to have different
experiences when shopping with Tesco. The company has put these strategies into place to
make shopping with them easier and more accessible. This may be for customers who may
struggle to get to one of Tesco’s stores or this may be good for customers who prefer to
shop online.
, Self-checkouts –
Self-checkouts first got introduced in 2003 by Tesco.
They help Tesco because it allows their customers to
have more of a quick and easier experience when
shopping. As well as it helps their customers, it helps
the staff as it saves time. The self-checkouts allow
customers to purchase their products independently,
without any staff. However, Tesco ensure that there is
always staff managing it, just in case customers need support. As a result, they will shop
more at Tesco. Due to this, they will gain more customers and profit.
Online shopping –
Tesco was the first supermarket to introduce online
shopping in 1996. This has helped Tesco maintain
their customers satisfaction because this has allowed
their customers to have easier access to Tesco.
Customers have more time to chose what they would
like to purchase when shopping online. This makes
shopping online much easier and customers will have
easier access to all of Tesco products instead of
having to find it within the store.
There are two other services which are related to shopping online. Tesco offer them to their
customers so that they have the best experience when shopping with Tesco. When Tesco’s
customers shop online, they are either going to have their shopping home delivered or they
may choose to pick it up from the store. This is good that Tesco have offered a few ways in
which their customers can choose which way suits them best.
Home delivery –
Tesco offers home delivery to their customers. They
introduced this service in 1996. This is an effective
way of shopping for the customers who may struggle
to get to a Tesco store, this could be due to a
disability or any of reason. This helps Tesco to gain
more customers. This allows Tesco to stay successful
due to the increase in profit. Furthermore, as Tesco
are offering a range of ways that customers can shop, the customers will like this and will
therefore shop at Tesco more often.
