Tesco -competitive advantage
Did Tesco enjoyed an IT – generated competitive advantage? let’s see…
In the early 1990, two players have emerged dominant in the UK grocery market Sainsbury’s and Tesco.
In 1995, Tesco launched the first ” Clubcard” and customer satisfaction rises because goods are readily available,services can become more personalised and shopping is more convenient.
The launch of the Efficient Consumer Response (ECR)initiative provided the shift that is now apparent in the managementof food supply chains (Datamonitor Report, 2003).
What technologies we can in Tesco stores:
- wireless devices
- intelligent scale
- electronic shelf labelling
- self check-out machine
- radio frequency identification (RFID)
This technologies became a necessity in the nowadays markets due to the increase in products and services. Also the need to apply advanced technologies became of most importance in the communication and cooperation with the suppliers.The adoption of Electronic Point of Sale (EPoS), Electronic FundsTransfer Systems (EFTPoS) and electronic scanners have greatly improved the efficiency of distribution and stocking activities, with needs being communicated almost in real time to the supplier.
The main power of Tesco lies in:
- superior performance in allocating resources to create competences (activities and process critically for competitive advantage)
- most customized and efficient service, based on good costumer relationship management
-makes a significant contribution to the perceived customer benefits of the outcome
- product differentiation (different approach to the service concept,providing good corporate reputation and introducing new premium quality products)
We can see clearly that at Tesco,the IT is the heart of the business process who focuses resources to convert distinctive competence into competitive advantage, and all of these cumulated makes the company one of the biggest player on the market.
