Tesco is the perfect case of use of Information Technology as a tool for a well defined Business Model which Adheres to its core purpose and values of customer loyalty and creating competitive advantage in the market.
Tesco had a clear Customer Relationship Management Strategy (CRM). It not only focused on competitive prices but also on the shopping as an experience as whole for the customer. The step towards the CRM was the Launch of Tesco Club card which was an innovation in the UK market for supermarkets which attracted millions of customers. When clients use the club card points get accumulated for every dollar the customer and can be redeemed at any Tesco Store. The vouchers can be used as payments when the client shops at the store. Another advantage for using this card is that the holders get free access to various clubs. But the area of concern for many people using such kind of cards might be the confidentiality of data.
Tesco made use of information technology to create tools to efficiently manage its supply chain. A program for farmers and growers and continuous update of codes for new research results shows its commitment to the supplier relations.
Tesco created an employee portal to manage its staffs and also a career portal to centralize its recruitment. It not only served as well defined approach by having centralised recruit plans but also cost effective. Here again it used IT management tools such as creation of website and management of database for its objectives.
On reading of the case, it appears that the Company used the IT system to build finance and inventory management similar to ERP modules. Further, these modules which required continuous online updates were also well managed by the Company.
Another successful strategy adopted by the Company to attract customers was “Clubcard Plus telephone Account” which also offered an overdraft facility. Club card which offered double point of purchases. It appears Tesco could really manage the growing number of saving accounts and cards. All credit to the Information Technology, utilising which the Company could really manage the strategy to attract customers, provide them point of sale services and maintain those customers for longer time period. Further, where the Strategy of entering into new stream of Business is concerned it appears they were again able to utilise IT as an important tool because 80% of the customers from TPF (Tesco Personal Finance) made their transactions through the stores. This again proves the ability of the Company to utilise the database maintained by it to its optimum levels.
Emerging in the latest era of Internet Tesco has emerged as one of the biggest Internet retailers which are tapping into the willingness of some customers to pay higher prices for a better experience. Internet-savvy consumers who value their time or are working class and want competitive prices, find shopping online to be a perfectly acceptable substitute. Shoppers can get groceries and more at competitive prices, just at the click of a mouse. The goods are delivered within an agreed-upon time and unloaded into the house at a nominal fee. No driving. No parking. No crowds. Here also, they are generating by not attracting customers to the stores.
In terms of International Expansion, the front end integration of its website and standalone working of the geographies /countries is the perfect example of managing IT in the way the company thinks to earn revenue and smoothen its operations.
To sum up, Tesco has proven its ability to utilise Information technology and its core values in a structured manner to generate the desired results - Profit maximisation and Customer satisfaction.
Tesco had a clear Customer Relationship Management Strategy (CRM). It not only focused on competitive prices but also on the shopping as an experience as whole for the customer. The step towards the CRM was the Launch of Tesco Club card which was an innovation in the UK market for supermarkets which attracted millions of customers. When clients use the club card points get accumulated for every dollar the customer and can be redeemed at any Tesco Store. The vouchers can be used as payments when the client shops at the store. Another advantage for using this card is that the holders get free access to various clubs. But the area of concern for many people using such kind of cards might be the confidentiality of data.
Tesco made use of information technology to create tools to efficiently manage its supply chain. A program for farmers and growers and continuous update of codes for new research results shows its commitment to the supplier relations.
Tesco created an employee portal to manage its staffs and also a career portal to centralize its recruitment. It not only served as well defined approach by having centralised recruit plans but also cost effective. Here again it used IT management tools such as creation of website and management of database for its objectives.
On reading of the case, it appears that the Company used the IT system to build finance and inventory management similar to ERP modules. Further, these modules which required continuous online updates were also well managed by the Company.
Another successful strategy adopted by the Company to attract customers was “Clubcard Plus telephone Account” which also offered an overdraft facility. Club card which offered double point of purchases. It appears Tesco could really manage the growing number of saving accounts and cards. All credit to the Information Technology, utilising which the Company could really manage the strategy to attract customers, provide them point of sale services and maintain those customers for longer time period. Further, where the Strategy of entering into new stream of Business is concerned it appears they were again able to utilise IT as an important tool because 80% of the customers from TPF (Tesco Personal Finance) made their transactions through the stores. This again proves the ability of the Company to utilise the database maintained by it to its optimum levels.
Emerging in the latest era of Internet Tesco has emerged as one of the biggest Internet retailers which are tapping into the willingness of some customers to pay higher prices for a better experience. Internet-savvy consumers who value their time or are working class and want competitive prices, find shopping online to be a perfectly acceptable substitute. Shoppers can get groceries and more at competitive prices, just at the click of a mouse. The goods are delivered within an agreed-upon time and unloaded into the house at a nominal fee. No driving. No parking. No crowds. Here also, they are generating by not attracting customers to the stores.
In terms of International Expansion, the front end integration of its website and standalone working of the geographies /countries is the perfect example of managing IT in the way the company thinks to earn revenue and smoothen its operations.
To sum up, Tesco has proven its ability to utilise Information technology and its core values in a structured manner to generate the desired results - Profit maximisation and Customer satisfaction.
