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Internet of Things for Largest Retailer in the World


Discuss about the Internet of Things for Largest Retailer in the World.


Tesco plc is the largest retailer in the UK and the second largest retailer in the world after Wal-Mart in terms of revenues generated. Tesco has a wide variety of products portfolio which they are providing to their customers in the market and this includes clothing (both men’s and women’s) books, consumer durables, furniture, toys, petrol, software and financial services. The organisation had a market capitalisation of 18.1 billion (approx) in the year 2015 and it is listed among the FTSE 100 index on the London Stock Exchange.

The organisation generated revenues of £62.284 billion in the year 2015 and it is currently employing more than 500,000 employees in its 6,814 stores around the world. The Internet of Things is a recent technological development which has shown a lot of promise in revolutionizing the world of technology and the manner in which technology is applied at the workplace and in our daily lives. The Internet of Things has given rise to smart technologies which has a lot of practical application in our lives. This technology is widely believed to transform our lives in the near future and make it more organised. This report will evaluate and analyse the potential implications of Internet of Things on the business activities of
Tesco in the market (Tan & Wang, 2010).

Purpose of the Report

The present assignment will demystify the use of Internet of Things and its applicability in the business world. Internet of Things is a revolutionary concept and has helped the field of technology immensely and now it is important to see whether this technology could prosper in the field of business and how it would benefit the business. Tesco Plc is one of the leading companies and hence it is justified to use this company to see the applicability of the concept of IOT in business.

Application of IOT in Tesco plc

The Internet of Things (IOT) could act essential in helping Tesco to address their shortcomings and bottlenecks which are threatening to bring down the overall productivity levels of the organisation. By adopting IOT within their organisational domain, Tesco will be able to come up with an effective solution to all the different problems and issues which the company is facing in running the organisation effectively. The IOT will enable them to enhance the efficiency of their manufacturing and production department and this will help the organisation to develop their financial performance and hence overall profit. IOT can function really effectively to detect the low stock levels in their inventory and enable them to automatically reorder supplies according to their needs and requirements. This will enable the organisation to ensure an effective supply chain management within the organisation which will help them to create a balance between the customer demand and supply of the products in the market (Kopetz, 2011).

The IOT would also help to keep a tap on the overall condition of the machinery at their production department and indicate when the machines would need to be repaired or replaced with new machinery. This will help Tesco to ensure that all the machinery which are being utilised within their production department are of the best quality and this would help the company to improve its daily productivity levels in the market and is likely to manage an upper hand in the market against its immediate rivals (Atzori et al. 2010).

The IOT would help the organisation to undertake an effective risk analysis in the market which will help the company to understand the different market risks which they can face in the future in due course of their business. It will enable the organisation to develop an effective risk management strategy Tesco to handle the business threats effectively and stay ahead in the business by gaining upper hand.

The IOT would enable Tesco to analyse the future market trends properly and this will help the company to effectively comprehend the customer buying behavior and what kind of products and services are being expected by their customers. The organisation will be able to provide on-time delivery of the products by tracking the delivery process from the point of sale to the doorstep of the customers. This will help Tesco to provide their customers with appropriate products and services which will help in ensuring customer satisfaction for their clients (Ashton, 2009).


The IOT would play a vital role in helping Tesco to take care of their business successfully. The company is likely to optimize their business processes and align them with their business goals and objectives in the market successfully and this will help them to create loyalty for the consumers and also help to create a level of fulfillment. The IOT would enable the organisation to enhance their daily production levels and handle the business rivalry successfully. Finally this is going to contribute for the company’s growth and development in the market (Wortmann & Flüchter, 2015).


  • Tesco needs to adopt the IOT which will enable the organisation to replace their old existing machinery with new ones and this will help the company to augment the Overall it could be said that this is likely to contribute for gaining upper hand in the highly competitive market environment.
  • Tesco needs to overhaul their existing inventory management techniques and replace them with the IOT and this will enable the organisation to ensure a better inventory management. The organisation will be able to track down the availability of products in their stores and ensure timely supply of goods from their warehouses which will effectively supplement the customer demands for the goods and services in the market. Hence the company is likely to create an effective supply chain which will enable them to create a balance between the demand and supply of goods in the market (Gubbi et al. 2013).
  • Tesco needs to implement IOT in order to ensure an effective risk monitoring and risk management within the organisation. This will help the organisation to track the market uncertainties so, that Tesco can continue its good work as well as be in top always among its competitors.


Ashton, K. (2009). That ‘internet of things’ thing. RFiD Journal, 22(7), 97-114.

Atzori, L., Iera, A., & Morabito, G. (2010). The internet of things: A survey. Computer networks, 54(15), 2787-2805.

Gubbi, J., Buyya, R., Marusic, S., & Palaniswami, M. (2013). Internet of Things (IoT): A vision, architectural elements, and future directions. Future Generation Computer Systems, 29(7), 1645-1660.

Kopetz, H. (2011). Internet of things. In Real-time systems (pp. 307-323). Springer US.

Tan, L., & Wang, N. (2010, August). Future internet: The internet of things. In 2010 3rd International Conference on Advanced Computer Theory and Engineering (ICACTE) (Vol. 5, pp. V5-376). IEEE.

Weber, R. H., & Weber, R. (2010). Internet of Things (Vol. 12). New York, NY, USA:: Springer.

Wortmann, F., & Flüchter, K. (2015). Internet of things. Business & Information Systems Engineering, 57(3), 221-224.

Xia, F., Yang, L. T., Wang, L., & Vinel, A. (2012). Internet of things. International Journal of Communication Systems, 25(9), 1101.

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