Diversify product portfolio- Tesco is aiming to diversify their product portfolio in order to reach and target more customers. By offering a better product range Tesco can attempt to make more income and more profits since customers will have more option to buy products and services with them.
Maintain number one supermarket position in the UK- This refers to uphold their position as the number one retailer company within the UK market. Despite all its competitors, Tesco is aiming to retain and increase their market share.
Growth of social media
Describe change- The internet and other technologies are developing at a very quick pace. Social media has been one of the new technologies that have contributed the most to connect the whole world together. The usage of website such as Youtube, Facebook and twitter has increased; this means that are more and more users using this social media networks in order to communicate and stay connected to the rest of the world.
Impact on business – The change in the social media can bring positive benefits to Tesco. Social media is often used by customers to express their feelings and needs regarding purchases and businesses they usually use i.e. customers who use social media to talk products or services Which Tesco does not provide. This enables Tesco to identify customer needs and demands by collecting this sort of feedback from social media. As a result Tesco can start providing these products and services to customers and widen their product range. Consequently, there will be more customers thus be able to do more and profits. This contributes for them to maintain their position as the number one supermarket in the UK.
E.g. A customer who tweets that Tesco does not sell swimming clothes. Tesco can identify these needs and start selling these sorts of products. This will help them to increase their product range and increase their sales. As a result it helps them to maintain their position as the number one supermarket in the UK.
Another way that Tesco can benefit from social media is that it allows them to communicate with customers i.e. if a customer tweets complaining about the lack of shopping carts within Tesco’s stores. Tesco can simply answer these customers using social media and explain the reason for such situation; this makes the whole process to be quicker and therefore save precious time to both company and customers. This way Tesco can improve their relation with customers and make them loyal to the business. As a result customers will spend more contributing to maintain Tesco the number one supermarket in the UK.
Costs/risks created- Tesco will have to assume small costs to create a social media account, since they represent an official organisation. Also, they will have to maintain those accounts regularly updated since the content within the page is visible at all the time. Social media can also oppose threats to Tesco. The reason for this is that it becomes easier or customers to make complaints and state their opinions to the world i.e. if a customer complaints about Tesco’s customer service on a social media network, it would be visible to the whole world. As a result other customer can have a negative impression of Tesco and therefore stop using their business. When customers stop shopping with Tesco it makes them loose market share since these will prefer to shop with other competitors. For example a number of customers who have not been satisfied with Tesco Mobile’s as its network is not reliable. These customers can eventually use social media to express their frustration and as a result impact other customers’ opinion about Tesco. This means that a retail company by expanding their product range, but not being able to satisfy its customers can impact all other sections of the business. This means that customer’s complaints through social media about Tesco Mobile can make other customers to stop shopping with Tesco supermarkets and other services,