Tesco Competitive Advantages

Tesco - a retail and general merchandising store chain from the UK succeeded to become the third largest retailer based on revenue after Wal-Mart and Carrefour. The company has a long history behind it, which did not compromise its constant development and reorganization. Some of the elements that helped Tesco to differentiate itself from the competitors include:

- Moving stores to the outskirts of the cities, allowing larger spaces and cheaper prices.
- Self-service model. Savings on human resources. Plus customers usually tend to buy more products when self-served.
- Introduction of the club card, increasing customer loyalty.
- Different types of stores in the store portfolio that may target different types of customers. For example, families may predominantly prefer to shop on the weekend, buying a lot of products at once, at cheaper prices. Whereas occasional buyers may go to Tesco Metro or One Stop, which are closer located but do not have the same variety of products.