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Essay / Research Paper Abstract
This 6 page paper looks at how Tesco, the UK supermarket chain, and the way in which they have been able to use information technology in conjunction with a loyalty scheme to gather data concerning customers purchases in order to gain a competitive advantage. The bibliography cites 7 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEKMtesco.rtf
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Unformatted sample text from the term paper:
valuable. Levinson (2005) points out that information alone is not knowledge and not all information will have value, to add value information and intellectual resources, such as intellectual capital in
order to create knowledge that can be utilised. This is a fact that Tesco understand well. The development of an information collection system with the use of a loyalty card
to help them understand their customers ahs become the source of a major competitive advantage. Tesco is the largest supermarket in
the UK with the largest market share and turnover. The company started out with the sue of first mover advantages and differentiation as a way of competing. However, in the
post Second World War period Tesco changed its operations. The company had started out as the novel idea of a self service store following the US model. However, by
the 1950s and 1960s there was increasing competition with others also following the same self service model, and Tesco had found it was selling cheap goods constrained to mast sales
in the lower income groups. The next few decades are seen as strategising in order to increase the demand across al income groups and targeting the customers who would spend
the most. The current loyalty scheme may be seen as the latest strategy to increase loyalty and appeal to different markets all at the same, time. To undertake the company
knew they needed to understand their target markets, how they behaved their buying habits and the influences on those buying habits. For
Tesco developing the loyalty card scheme were very appropriate. The level of competition from the existing supermarkets was high, they sold the same or similar goods, often they would be
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