An Analysis of Tesco's Competitive Strategies and Systems

This report examines Tesco's competitive strategies, including cost leadership, innovation, and product differentiation, within the context of its business information systems. It explores how Tesco leverages these strategies to maintain its market position, focusing on elements like transaction monitoring software, consumer communication, and supply chain management. The report delves into the frameworks of the 6Cs (Cost reduction, Capability, Communication, Consumer service, Control, and Competition) and their influence on Tesco's operational effectiveness. Furthermore, the report highlights the importance of information systems in managing supply chain elements, such as food product delivery, packing operations, and store-based production. The report provides a detailed overview of Tesco's approach to maintaining its competitive advantage through the strategic use of information systems.

Business Information
Systems

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Competitive strategies of Tesco.........................................................................................3
2. Information system different method for monitoring the Tesco business..........................4
3. Frameworks of 6C's in information system........................................................................5
4. Importance of information system......................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The Business information system relates to innovative techniques and tool which are
essentials for every business for stable in market area with effectiveness manner. Business
information system is refer to collection of data with proper manner which can be utilized when
it needed. Therefore, it is necessary as present commercial enterprise scenario because it assist to
effective operation for taking market advantages. Tesco is valuable brand name UK territories
which share around 45% of grocery market (Yeh, Lee and Pai, 2012). Therefore, this
organisation has being growth continuously as other competitor. In this report consist of detail
strategies of Tesco company which it used in market for making influence in market with
attractive manner.
1. Competitive strategies of Tesco
In the present period this company share large part in retail market. It operate in world
market where large number store has been opened with fair manner. Therefore, it is possible by it
some competitive strategies which are as follows: Cost leadership – Strategies for provides product in lower price is the main reason of its
success. It directs order to manufacture of product therefore, it gives product in less price
so that more consumer attract to this supermarket (Österle, 2013). On the other hand, it
also gives a special discount to regular patron by issuing electronic card which required
to swap when they buy item. Apart from this, Tesco is a cost leader of good on UK
market because it order received in large quantity then other competitor. Moreover, other
competitor not able to gives a same price as Tesco enterprise. On the other hand, its
operation are effective which based on proper method and techniques (Zikmund and et.
al., 2013). Therefore, it helps to reduce the cost of product which available in lower cost
to every consumer with best class quantity. Innovation – it gives priority to innovation further, it always trying gives something new
to their consumer. Therefore , it also accepts order on telephone and direct manner. On
the other hand, it launches its Owen website for sale item at direct home by clicking
option (Power, D. J., Sharda and Burstein, 2015). Along which, it does not levy any
delivery charges for order item. Apart from this , it gives online sales facilities to their
consumer before their competitor therefore, this strategies become more attractive for
company which gives at least 3.26% net profit which record in year 2015 that is much

higher than other smilier organisation. It also launches own website in year 2000 which
much earlier than other enterprise (Amit and Zott, 2012). Therefore, it offers to consumer
product and service at home delivery with proper manner. On the other hand, it also
delivers good and product via application mode. This service launches by enterprise for
smartphone user. Its main purpose is to offer
 Product differentiation strategies – Tesco offer various of item other than grocery
product like shoes, clothes, sport item etc. moreover, more product in one roof attract to
large number of consumer with effective manner (Ward III, Hancock and Macrae, 2014).
These strategies give new market and consumer to company. Therefore, this plan make
different to company than their competitor and create effective image in client mind.
Apart from this, it offers different range of product to their client at one roof. It directly
contracts with large concern for availabilities of product at store and online platform.
Therefore, these strategies of company gives more benefits to enterprise for connect large
number of patron. In pastime it was just deals in grocery product but it grows their scope
in present time because it deals in every product like electronic, cosmetic product, loan
facilities etc. hence, most of product cover by this company increasing the number of
consumer with large amount.
2. Information system different method for monitoring the Tesco business
In the present time period, management used various system for purpose of effective
operation. It monitoring all activities in business environment with proper manner. Some
software used for effective utilization by Tesco is as follows: Transaction monitoring software – Tesco install this type of software at every store for
purpose of maintained reliable and effective transaction (Demirkan and Delen, 2013).
Therefore, it consists whole record relates to whole activities like cash received, tax,
return etc. so this company can manage their operation properly with scientific method. Consumer communication – It maid a soft ware where Tesco consumer can
communicated to each other without paid any cost. These strategies attracting to more
patron and increasing brand value. Application – It launches application for smartphone user. In this, enterprise display all
its product with price and offer discount on whole product. Therefore, it directly connects

to organisation with patron (Vasconcelos, Sousa and Tribolet, 2015). Hence, whenever
company can communicated to consumer about every product and service. Website - It launches its own software in 2000 where all product and services has delivers
on one touch. Therefore, these strategies is effective for every organisation with proper
manner for find out new market with fair manner. Supply software – this software helps to manage whole chain of supply of good. It
monitoring good and service from manufacture to consumer (Ristov, Gusev and
Kostoska, 2012). Therefore, this also help full in control of quality with effective manner.
On this software enterprise ensure about quality product has received. Consumer feedback – company govern social team for solve out the problem relates
business operation. This software collected whole feedback in one place therefore, its
easy for company to known the common and priority problem for solved. Business communication software – Tesco launches business communication system for
maintain connectivities with supplier and consumer (Amit and Zott, 2012). This software
gives more benefits to enterprise with fair manner. Every successful operation is depends
on effective communicating with person who is essential for enterprise. Accounting software - In this Tesco enter transaction which emerge in daily operation.
This software is necessary for company because it shows position of company with fair
manner at the end of financial year (Jansen, Cusumano and Brinkkemper, 2013).
Therefore, in this system enterprise enter daily transaction which actual arisen during
business operation.
 Transportation software – This program assist to manage whole transportation operation.
Therefore, it gives information of cost of good during transit.
3. Frameworks of 6C's in information system
The Tesco used some strategies which necessary required for effective operation. 6 C's
area should be considerable for successful of organization. Cost reduction – Tesco mainly work on physiologic method for attract new consumer
from market. It orders large number of product directly from manufacturer that is why
they able to sell product by adopting lower price strategies (Bardhan, Krishnan and Lin,
2013). Therefore, lower attract to every group of customer's in large number for buy item
on commerce website as well.

 Capability – Tesco Hold influence position in UK market area therefore, e-commerce
strategies raise operational capacity of Tesco retail company with fair manner
(Wiengarten, Humphreys and Fynes, 2013). Therefore, in the e-commerce company
required to storages product in one place and sales all as consumer demand further, in this
strategies it save the cost which relates to store and shop. Communication – Tesco used various of techniques and method for maintained effective
communications. It issues loyalties card and club card where it collected personal dossier
about patron and maintained effective relationships with them (Tesco probe raises
concerns that retailers dominate supply chain, 2016). On the other hand, relation with
supplier is also essential for long term operation. Therefore, it used modern platform for
conversation like chat, social media etc. Consumer service – Tesco established special team for solve out the problem of patron
with effective manner. It adopted professional strategies for reduce the unsatisfactory of
client. Therefore, the team special focus on problem which actual suffer by consumer and
it gives proper solution to them (Tesco Business Strategy and Competitive Advantage,
2016). Apart from this, it works on strategies of 100% consume satisfaction which
provides the best class product and services. Apart from this, company also engraved the
consumer feedback option on website site for better satisfaction of patron. If consumer
faces any problem relates to product and service than they can enter complaints on this
section. It also gives benefits to enterprise with proper manner because it can also known
the actual conditions in operation. Control – The Tesco operate a quality chain for supply of product and service further,
proper process helps to supply the best class product and service to them. Therefore, it
uses safety, quality and legal tool in every product (Yeh, Lee and Pai, 2012). Therefore,
whole operation has monitored by itself with effective method and techniques with
proper manner. On the other hand, it conducts a quality program where it trains to each
person for monitor each activities from where good and service has supplied. Apart from
this, staff feedback is also necessary for proper operation. Apart from this, company also
manage their operation by using software program (Österle, 2013). In this enterprise
controlled whole activities in fair manner. It controlled whole activities with method and
techniques.

 Competition – It covers 30% of total grocery market and take perfect advantages from
market. Lower price, consumer satisfaction and quality program gives a competition
advantages to this enterprise with effectiveness (Zikmund, and et. al., 2013). It also
covers internet market for sales their product therefore, these strategies shows differently
in front of consumer.
4. Importance of information system
A. Upstream and downstream element in supply chain
The Tesco company offer product and service either physical mode or online more. So
that supply chain must be effective which must be based on scientific method. There are many
risks has emerged between transit of good therefore, proper operation of transaction must be
carried on (Power, Sharda and Burstein, 2015). ICT store all data relates to business operation
activities and used when it Is needed. Hence, its used different type of strategies for supply of
good and service to enterprise with fair manner.
 Food product – Tesco supplied food product with using different strategies like packing
product is different manner and delivered in short time period. Therefore, it is a large
supplied chain which used in company with proper manner. Along with, this type of
product generally supplied in local area with short time period (Stair and Reynolds,
2013). It considered some point while delivering product and service.
◦ Provides security to whole food product.
◦ Follows guideline for safe to food product.
◦ Grow private label penetration.
◦ It should mention label about guidelines.
Five model should be considerable for managing whole operational part relates to supply chain. Packing operational – Tesco used effective method for controlled whole operation with
fair manner (Amit and Zott, 2012). It ensures to retail organisation for quality product
availabilities. It reduces the possibilities of wrong product supply. Private label manufacturing – In this Tesco manufacturing their own product with
decides all standard contained. There is enterprise fixed contained quality of product and
applied on manufacturing operation (Ward III, Hancock and Macrae, 2014). Therefore, it
reduces the possibilities of defective good production.

 Store based production – Duration of some product is short further, that type of good
spoil after their time. Therefore, such product is only possible to produce in store. So that
this company should monitoring whole production operation in store with proper method
and technique (Demirkan and Delen, 2013). On the other hand, it should focus on whole
precess when it produces. Finally, it should be engraved label of goods when it produces.
Apart from this, consumer feedback is very essentials for known the quality relates to
produced product. Central kitchen – Tesco established their kitchen at centre area for purpose of easy
delivery at every place without facing any problem. In these strategies, company choose
centre place where every target place become near with every store (Vasconcelos, Sousa
and Tribolet, 2015). Therefore, product can be supplied easily to any person with fair
manner.
 Growing operation – Operation must be in growing condition for taking long term
benefits and taking benefits therefore, faster delivery option of product and service also
impact on supply chain (Ristov, Gusev and Kostoska, 2012). Hence, whenever Tesco
using growing business strategies than it should supply fast good to patron. On the other
hand, proper store should be operate for carrying on a business.
B. Three key flow of supply chain
Supply chain must be appropriate with proper method and techniques. There is consisted
of following flow which is essential in Tesco retail company. Information flow – it refers to transfer of information with appropriate method and
techniques. Therefore, Tesco using various communication method for transfer
information to each other (Amit and Zott, 2012). It is to be noted that not barrier should
be arisen during communication process. This company as food and retailer chain it
maintained relationship with consumer and supplier. Therefore, proper convey with this
person with this person is necessary. Hence, if it appropriates than they can transit food
product as demand. Therefore, there is no unnecessary cost can be emerged. Physical flow - Tesco mainly deals in retail item so there is item has conveyed by
transportation facilities (Ward III, Hancock and Macrae, 2014). Therefore, the product
must be transfer with appropriate method and techniques for maintained good qualities.
Along with, there is no extra cost may be emerged. It also attached with reputation of

Tesco because every product has transfer by using name of this enterprise. Hence, proper
method and techniques must be followed while they deliver good and service from
manufacture to end consumer. Lastly, it has chooses different type of strategies for
supply of good (Demirkan and Delen, 2013). Thus, good fist supply at store room from
manufacture concern. Then it delivers to store as demand and requirement than sales to
end consumer. On other hand, on online mode, it directly transfers to end consumer from
store room. It also chooses different method of packing and
 Finance flow – Appropriate transfer of finance is also necessary in supply chain because
it important in proper operation of business (Vasconcelos Sousa and Tribolet, 2015). In
the pastime, company using bank for transfer finance wit proper method, but in the
present time various of new method has introduced for transfer of product cost.
Therefore, company gives operation for transfer of product on website directly. On the
other hand, it has also engraved option of application where consumer directly paid for
item by using application method (Tesco probe raises concerns that retailers dominate
supply chain, 2016). Apart from this, patron can use “cash on delivery” option where
they can pay amount when good has received.
CONCLUSION
Summary of report state that Business information system is a essential component for
every organization because it made easy business strategies for operation of whole enterprise.
Tesco used various of software for monitoring whole area in business operation with proper
manner. It gives benefits in supply chain and quality controlled during transit. Therefore, role of
it is very essential for proper carrying on business. Hence, supply chain with proper method and
techniques also importance in every enterprise operation because it assists to mange whole
quality controlled ot any other unfair practice which is cover in illegal activities.

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