The IT-generated Competitive Advantage at Tesco

I would like to analysis the IT-generated competitive advantage at Tesco with the 4C module: Consumer, Cost, Convenience and Comunication.

Consumer
With its own web Tesco Direct service, Tesco could offer better consumer-centered services. Since 1996, more and more people began to use internet in their life, especially young people, they were used to buy things on internet as well. It is their way of life.

Cost
Except for the initial cost of Dell servers and Microsoft BlackOffice which were a modest investment, Tesco spent low fees on keeping this website working. No salesperson and no rental of stores. Therefore lower price for the same goods which would be welcomed by almost all the customers.

Convenience
Kinds of online services including prices comparision with competitors, trade shares, interact with the Clubcard Plus account, online ordering are very convenient for the customers and save them a lot of time and energy. Above all, most of the products sold in retail stores, such as books, milk, electronics, are products in fully competitive markets. That means, as long as you know the name of the book and its writer, the book wherever you get will be the same; as long as you know the producer and the type of the mobile, the mobile wherever you get will be the same too. It is also quite impressive that Tesco.com was made accessible to people with sight problems and hearing impaired, which not only greatly makes the life easier for the disable, but also enhances the respection to the company from normal people.

Communication
A website is the best place for the clubmembers of Tesco to discuss and for the ones who have any opinions or suggestions. Everyone needs to express, but few will go to complain in the retail stores directly while prefer to write something known by others. What's more, website is also a good promotion methods to tell the customer what new products and new incentives the retail stores are going on.

In conclusion, IT technologies do help a lot in increasing the competitive advantage at Tesco. Meanwhile, if other retail stores follow Tesco, they will have a more bloody battle since now the customer has more resources of information and comparision.