IT Generatied Competitive advantege at Tesco.

The most abvios competitive advantage Teco has its 70,000 orders per week through Tesco.com and its 8 million club card memers. Apart from that, the fact that Tesco did not over estimated the demand for on-line shopping, and decided to provide the e-costumers with the existing infrastrucre, gave Tesco a Huge advante. This advantage consist on reducing their initial investemt on aditional warehouses and continue to provide better prices, service and rewards for their costumers. On the other hand, Tesco has a unique advantage of having loyal cosutmers.  During the history of this company, the managers have always taken risks on order to provide the costumer a “better deal” than the competition. This strategy has clearly worked over the years and now they are the leaders on their industry. Said that, I really think that another comeptitive advante that brings to Tesco is the fact that they can do promotions to incentive the e-shopping. Having such network has a huge competitve advantage because you can reach them personally, you can inform them about the benefits of e-shopping, among other benefits.

Combining their 8 million club card members and the allready existing 280,000 orders each month through the web, Tesco has a huge advantage over its competitors. Their grand “asset” are their loyal costumers that recive information about your stores. Such information in a personalized way and very targeted on your likes and needs. That kind of advantage its very difficult to have! This advantage can be easily used by the IT depatment inorder to increase their monthly orders through the net. Once you explan to the costumer the advantages, and you communicate the posibility of buying through the web, some people will definitly have in mind  Tesco.com.  On the other hand, the web is an adittional service that Tesco is providing. Instead of thinking that the turnover of Tesco was ,through e- grocery, was only 1.5%, it should be though as a adittional revenue that people that were busy  would not have bought  if the sevice would not be available. On the other hand, the cost that the costumer has to pay to buy throgh the web is  a cost that some costumers are more than willing to pay in order to save time.

To conclude, the web has to be seen as an aditional service that Tesco offers to its clients. Also it has to exploit the posibility of letting the custumers know about the benefits on using the web. Also it will be necessary to include the member card costumer a kind of promotion for the custumer to try the sevice. Tesco will have to incentive people to use the service and to try out this efficent way of shopping. I rally think that promoting the e-comerce you do not canibalize you stores, but on the contrary. I really belive that the number of times the same costumer buys at your store increases because having the on line resource you can always order somethings that other wise you will definitly not go to the store.