Individual Report: Customer Service as Competitive Advantage at TESCO

This report provides a comprehensive analysis of customer service as a source of competitive advantage, specifically focusing on the retail chain TESCO. It begins with an introduction outlining the importance of corporate governance, customer service, and competitive advantage. The report then delves into a literature review, exploring the role of effective customer service in achieving a competitive edge, the importance of enhancing customer services, and the impact of company service issues on competitive advantage. The research incorporates both primary and secondary data, leading to a critical review of the findings and the formulation of recommendations. The report concludes with a detailed action plan designed to improve customer service and enhance TESCO's overall competitive position. The report also discusses the importance of customer focus, strategies for improvement, and common operational issues that affect customer satisfaction, emphasizing the need for performance indicators and clear communication within the organization.

CW1: Report:
Individual report with
action plan

Table of Contents
INTRODUCTION.........................................................................................................................3
Literature review:..........................................................................................................................4
Discussion of the secondary and primary research undertaken.....................................................9
Critical review of the results of the research:..............................................................................11
Recommendation:........................................................................................................................19
Action Plan: ..............................................................................................................................20
REFERENCES ...........................................................................................................................24

INTRODUCTION
Corporate governance is the basic combination of processes,laws and riles that are part
of a organisation. It encompasses the external and internal factors affecting overall interest if
different associated stakeholders that are customers, suppliers, government regulators &
management. related to different aspects that includes associated stakeholder such as
shareholders, suppliers, government regulators, management (Cao, Ajjan and Hong, 2018).
Present report is based on the discussion of different sources of primary and secondary data that
can be used in order to evaluate the collected information based on laid down objectives of the
research. Based on the data that is collected from various identified primary and secondary
sources there is a critical review that is conducted and further recommendations are drawn that
can be used by the organisation.
Background of the issue
Customer service plays critical role in success of the company and is a tool used to
increase consumer satisfaction so as to enhance consumer revisits and gain loyal consumer.
Competitive advantage is defined as various factors that gives an organisation special favour
over their competitors in generating profits and continuing stable expansion (Marlius and
Putriani, 2020). Good customer service is gives a company competitive advantage as it
increases customer retention, consumer loyalty and overall profitability. This report examines
customer service as factor of competitive advantage for retail chain TESCO.
Aim: “Critical analysis of customers services to understand the it as a source of competitive
advantage”. A study on TESCO.
Objectives:
 To understand the role effective customer services in achievement of competitive
advantage
 To determine the importance of focusing on enhancement of customer services. To identify the impact of issue on company services.
RESEARCH QUESTIONS:

 What is the role played by effective customer services in achievement of higher
competitive advantage?
 What are some of the steps that can be used for enhancement of customer services? What is the major impact on issue related to company services on attainment of higher
competitive advantage?
RATIONAL OF THE STUDY:
There are some of the issues related to customer services that are part of every
organisation and are affecting the way the present customer base is provided with the quality
and Standards of services. There is a requirement by retail sector industry to focus on the
changing customer expectations os that they are able to cope yup with the changing customer
expectation. For this the present report deals with the literature review where there is use of
secondary sources of information to make a further detailed analysis of the way different
factors are posing a impact in the present marketing strategies of organisations (Xiao and
Kumar, 2019). The main aim of the report is to evaluate the role of customers services and its
direct relationship with the achievement of competitive advantage. Different steps that can be
understand by the organisation for the purpose of maximisation of customer value and some of
the commonly faced issues by organisations that are affecting their present functioning and
future strategy formulation & implementation.
Literature review:
Understand the role effective customer services in achievement of competitive advantage
As per views of John berrry, 2017 competitive advantage is the ability of a organisation
to sustain probability in order to exceed the average of a industry top develop some distinctive
competencies (Achieving competitive advantage through people, 2017). There are major two
sources of competitive advantage in context of TESCOP one that arises from a favourable cost
position and other is one that come when people are able to differentiate the products, people
can determine how productive a organisation based on the way it is providing services to their
customers. In context of TESCO there can be development of competitive advantage when
there is proper differentiation that is present according to the gross contribution that is
available and is the real measure of success for a trading form which is also a parameter to
maximize the sources of competitive advantage for a organisation.

As per views of Johnny Matta in the year 2016 , intention of an organisation to provide
satisfactory customer service is not a selfless objective as it helps the company build good
customer relations and sustain loyal customer base. In this age of information good customer
service plays a vital role in helping the company gain competitive advantage and eliminate
possibilities of price wars (Abeyratne, 2016) . As little as 5 % gain in allegiant consumer base
increases net profits by 100 %. Thus, investment in quality customer service directly reflects at
profitability of the company and help the company reach maximum potential as the focus of the
company moves beyond increasing single transaction with customers to increasing and
sustaining stable customer acquisition rate. Presence of quality customer service at a company
enhances oral promotion through personnel experiences of existing customers. This type of
promotion is more valuable in the mind of the consumer as it comes from their close relatives
and gives the company a rare and valuable advantage over their rivals and it also reduces
marketing costs of the company (Nordheim, Følstad and Bjørkli, 2019).
Absence of good customer service increases costs of the company in the form of
dissatisfied employees, increase turnover rates and negative workplace environment due to lack
of customer handling knowledge. Financing training and development procedures which
improve customer service skills of employees is more bankable for an organisation in
comparison to handling various problems caused by discontent workforce (Bekk and et. al.,
2016) . McKinsey figures that up-to 70% of purchasing interactions are founded on the overall
treatment of the consumer, and the consumers revisit a company after getting respectful
treatment from the staff (Falter, and Hadwich, 2020). The main element of customer service is
presence of accessible ways which help consumers communicate with customer service
representatives easily and swiftly. As only small amount of disappointed consumers make an
effort to contact the company, it is necessary for the company to comprehend their complaints
and take effective measures to ensure maximum satisfaction of the consumer after their
interaction. Another equally significant part of customer service is the overall impression
formed by well spoken and educated staff interaction of the consumer (The competitive
advantage of good customer service [Opinion], 2016).
This improves the brand image of the company and highlights their corporation as
positive and caring enterprise. This helps the company establish an image of expertise in the
industry and not only increases sales of the company but also helps the company expand into

new markets or launch new products with positive brand affiliation. Enhanced brand image
formed due to effective customer service helps the company gain and sustain talented workers
as they feel pride in working for a well known and respected brand in the industry. This further
helps the company effectively accomplish their objectives and achieve a stable growth rate
while also giving tough competition to their opponents (Ives, Palese and Rodriguez, 2016).
Customer service also helps the company collect relevant information about consumer trends
with their products and their reaction after receiving dissatisfying product or service by
techniques such as NPS. This data helps the company efficiently improve their customer
acquisition and retention strategies along with customer service practices (Kumar and et. al.,
2016) . Satisfactory and effective customer service practices help the improve efficiency of
various aspects of their organisation and company gain competitive advantage in the industry.
Determine the importance of focusing on enhancement of customer services
As per the views of Hannah wren, 2020 Customer expectations are the criteria that is
when customers are scrutinizing the business in a more intense way. it is related to the way
there is comparison been a brand providing easy, fast, quality and personalized experience as
compared to other competitor that are part of the market & similar industry. Customer focussed
business can lead to reaping of benefits and development of loyalty towards a particular brand.
Approx 89 percent of companies are focussing on customer experience, customer focus has
been so important and there always remains a gap between way the companies are going they
are customer focussed and way they are actually agreeing to it (Goodman, 2019). Customer
focus can be improved by deepening of the understand of the way there can be effective
customer focus strategy that can be developed where there has to be fostering of company's
culture towards enhancing customer satisfaction and further building up of strong customer
relationships. Customer focus is the core vale that determines the organisation what they ant to
be and what are they expecting the values to be offered to their customers. It is basic foundation
of customer loyalty as there is a promise made to customers for building up of effective
customer relationship with them. It involves the learning from customers and getting the
valuable insights.

There are many strategies that can be used by organisations and in context of TESCO it
includes encouraging of collaboration (Iyer and Krsek, Adobe Inc, 2019). Making customers
that their views & feedbacks are regularly taken into consideration by the organisation, meeting
the customers with focus on single communication channel with a great experience. A effective
customer experience can be created by allowing customers to consider different channels such
as 360 degree view is very important for connecting with them across channels and ensure that
the context is moving along with customers (Alnawasand Hemsley-Brown, 2018). It will lead
to business having personal and faster response. Handling of customer feedback is also a
strategy to become a customer focussed company where the organisation has to focus on
dealing with customer complaints rather than being a customer focussed company.

Identify the impact of issues of company services on competitive advantage
There are many different business issues that are part of the external environment or the
internal environment and have to be identified early so that there can be evaluation based on
laid objectives. There are many different types of operational issues that can arise in a business
organisation that lead to a complete negative impact on the overall company services. It
includes the operational issues that lead to dissatisfaction of customers as they are not offered
with timely services. Apart from this there can be some of the internal issues that has a direct
impact on the satisfaction of customers. Such as managing of overheads, monitoring of
performance of employees working at different levels are some of the common issues that may
lead to a negative impact on the overall services of customers.
There are to be some measure that have to be set up so that there can be timely
monitoring of performance. For this there are some of the potential indicators that are taken by
consideration in organisations such as if a member of the staff is having poor performance then
it stars affecting the whole team and overall productivity is also getting impacted. There is
requirement to set some of the performance indicators according to expectations of respective
teams and then further identify how the results will be measures so that the progress cam be
monitored and predominance is evaluated (Christopher, Amazon Technologies Inc, 2017)..
Some of the common issues in context of TESCO includes the absence of clear direction for the
overall workforce and there is difficulty in blending of the multiple personalities in a unified
and cohesive team. Another issues is the develop key behaviours and competencies according
to expectations of customers. Poor communication techniques that are used by the customer
feedback department and the presence of lack of awareness are some of the common issues that
may arise in a organisation. All this has a direct impact on the overall quality of customer
services.
Hence, it is essentially required that organisation have to focus on developing customer
services so that there is no negative impact on the customer satisfaction level. When customers
are not satisfied then it leads to a directer negative impact in their willingness to switch to other
competitors in the market. There are some other business risks that may arise because a
company si facing exposure that may eventually lead to lowering of revenue, financial losses
and profitability. Companies are facing business losses and that are part of the overall segment

and the industry in which they are operating. Such as TESCO is part of the retail segment and
are
Discussion of the secondary and primary research undertaken
Secondary research: This type of research technique includes utilization and
evaluation of present data with the objective of getting a wider understanding of the research
subject. The substance used in secondary research includes data collection from various
publications, government bureau, online portals. educational channels, libraries and articles.
Secondary research is affordable technique and does not require huge amount of time for data
collection and evaluation (Bekk and et. al., 2016) . This type of research involves data
collection from easily accessible places and authenticity of collected data can be checked easily
and may include personnel prejudice of the original researcher. Such compromised data
negatively affects the findings of the research.
Primary research: This type of research is conducted through direct interaction with the
source and is carried out with aim to gather first-hand data from various sources. This type of
research involves sample group surveys, telephonic or in person interviews and making
observations. Primary research requires huge investment of financial and non financial
resources and provides the researcher specific results about the topic of their choice and
requires profound research and analysis. The data collected through primary research is owned
by the researcher.
Qualitative research: This type of research technique concentrates on assembling
descriptive information about relations of individuals with the given subject matter through
non-judgemental and direct communication with various members of a targeted group. This
type of research provides the researcher profound information about both emotional and
practical aspects of a particular content (Kumar and et. al., 2016) . This type of research
involves personnel interviews, group discussion with members of particular demographic, case
study and observations. Qualitative research is focused on gathering current and relevant data
from various sources which helps the researcher draw effective conclusion which is up to date
with latest developments on the subject matter.
Quantitative research: This type of research approach aims to assemble numerical
information from various sources to examine the subject matter in statistical and mathematical
terms. Quantitative research is conducted by utilising organised data and involves use of

surveys, probability and non probability sampling, observations and experiments. Quantitative
research focuses on data collection which helps the researcher form numerical, concrete
conclusion. This type of research presents data which is free from prejudice as it is completely
based on correlation and examination of numerical information. The results gained from this
type of research can be swiftly collected and easily re-evaluated for accuracy.
Presently there is use of both primary and the secondary sources of information for the
purpose of reaching to relevant conclusion and achievement of the aims that are laid in the
initial stages of this report. For this in case of secondary sources there is use of available
literature sources, online articles, books and journals so that the related information can be
readily available. Apart from this for the purpose of collecting primary sources of information
there is use of questionnaire as a means to collect the required information from the target
segment of respondents. The respondent consist of managers of TESCO where their view
points will be evaluated based on the information that is collected from this filling of
questionnaire. There is selection of 10 respondents whoa re the managers of TESCO.
Questionnaire:
1) According to you what is the major source of competitive advantage
for your organisation?
a) High quality of products and services 2
b) Cost leadership position 3
c) Global presence 4
d) All of the above 5
2) What can be some of the efforts that TESCO is making to attain
higher competitive advantage?
a) High quality products 5
b) Large variety of products & services 1
c) Easy availability of products 1
d) Both online and physical presence of products 3

e) Timely innovation 5
3) What are some of the factors that are affecting the present
competitive position of TESCO?
a) Presence of competitors 4
b) Easy Availability of substitutes 2
c) Changing customer expectations 4
4) What are some of suitable strategies that can lead to higher
competitive advantage for TESCO In coming time period?
a) Trained workforce
b) Effective promotion techniques
c) Timely launching of new products.
d) solving customer queries
e) Evaluating customer feedbacks
5) What are some of the techniques that is used by TESCO to
understand the present satisfaction level of their customers?
a) Online surveys
b) customer questionnaire forms
c) direct customer interviews
d) some other methods
6) Do you believe that competitors are a threat for the present
competitive positions of TESCO?
a) Yes
b) No
7) What is the main issues that are affecting the present company
services of TESCO?

a) COVID 19 impact
b) Changing customer requirements
c) Emergence of effective strategies on part of competitors
8) Do you believe that there is a relation between effective customer
services emerging as a source of competitive advantage in long run?
a) Yes definitely
b) No may be
c) Sometimes
Critical review of the results of the research:
Theme1: major source of competitive advantage for your organisation
1) According to you what is the major source of competitive
advantage for your organisation?
Frequency
a) High quality of products and services 2
b) Cost leadership position 2
c) Global presence 1
d) All of the above 5
Interpretation: It can be interpreted from the above mentioned aspects that when it was
questioned to employees regarding the major source of competitive advantage the 2 employees
responded in favour that high quality of products are leading to competitive advantage. 2 felt
that cost leadership position is leading to achievement of competitive advantage for TESCO,1
of the manager had a view that global presence of TESCO is the source and remaining 5 had a