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Essay / Research Paper Abstract
This 6 page paper looks at the way that the UK supermarket chain Tesco uses technology and manages information and the way it has helped the company gain and retain its' dominant position. The paper considers the history of technology and information management within the firm and discusses the current use of the loyalty card as well as technology in inventory management including EDI and RFID. The bibliography cites 6 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEtechtesco.rtf
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Unformatted sample text from the term paper:
in the early 1960s when Tesco, along with the then leader of the supermarket segment; Sainsbury were using basic accounting systems and early computing equipment such as the Emidec 1100
(Newman, 1975). Since that time technology has revolutionized the way that businesses operate and Tesco can be seen as a firm that has taken advantage of that technology in order
to increase efficiencies in operations, encourage loyalty and create marketing opportunities which have aided in the progress of Tesco becoming the dominant supermarket chain in the UK.
Looking at the way that technology is used today it may be seen as supporting the competitive advantages that the firm is leveraging in order to
maintain its leadership positioning. One of the most apparent used of technology is with the development and use of loyalty cards. Supermarkets have traditionally found it very difficult to retain
customer loyalty, switching costs are very low for the consumers and the goods sold are either the same or very similar. Early attempts to increase loyalty were seen with
Sainsbury and the use of Green Shield Stamps. This helped to increase loyalty, but when looking at the more modern version of a reward card it may be argued that
as well as customers benefiting from the rewards Tesco have found a way of making it very cost effective by using technology to extract more value than simply encouraging repeat
visits. When then cards were first trialed the model was different; initially customers paid for the cards. When receiving a card they would also give the company information regarding their
demographic group. The trial was a success the resulting long term loyalty scheme has become one of the most successful marketing tools seen in the UK (Kotler, 2003).
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