Tesco and the competitive advantage of using IT

Tesco looks to me a very smart company. Even before technology was available, they have showed a great capacity of thinking out of the box. This has allowed them to be the first in adopting new unexplored solutions (eg the Green Shield stamps trading scheme, the ancestor of loyalty programs, Tesco metro and Tesco superstores concept, Check out operation) which have allowed them to be closer to their customers, hence, to create a strong brand image. I have no hesitation in considering Tesco;s main characteristic that of being a first mover inside and outside their traditional markets. The advent of the technology has simply magnified their ability of listening to the voice of customer and identifying new business opportunities. One clear example is the Tesco Clubcard, the UK's first supermarket loyalty program, launched in 1995. Thanks to it the customers may collect points and redeem prizes but, most important, Tesco has now the opportunity to access to key data identifying purchasing patterns. This has allowed, in turn, to design ad hoc promotions, discounts and offers strengthening once more the relationship with their customers. From this moment on Tesco has kept on taking advantages of the power of new technologies: first the on-line shop Tesco.com, then the launch of a Tesco debit card in association with the Royal bank of Scotland, partnerships with strategic actors such as travel agencies which are included in the loyalty program, development of the online retail website to support blind and deaf people, development of a recruiting website with a highly specialised actor.

Tesco peculiarity is also its deep engagement within the community, be this customers, employees or society at large as proven by initiatives such as participation in charity programs, staff involment in the company future, support to their suppliers...

Ovreall Tesco knows that by involving and engaging people they will be able to stay ahead of changes, somehow anticipating them and being ready to continuously evolve. This is their competitive advantage and, at the same time, the secret of their success. The adoption and exploitation of the potential of the new technologies is consistent with this mindset and neverending search for new and unexplored opportunities.