Tesco to Take on Microsoft
According to today’s Guardian, Tesco is to take on Microsoft by producing its own brands of software.
Now obviously the same guys who roam the aisles and shrug when you ask them where something is, luckily won’t be programming the new software. They have partnered with a company called Formjet who will handle the software creation while Tesco will handle the branding and distribution. Formjet is known for making knockoffs of Microsoft products with varying levels of success.
This type of strategy by Tesco who already sells car insurance, offers financial services and petrol seems to really fly in the face of what most business advisers will tell you. The conventional way of thinking has always been to find your strengths and improve/innovate on them rather then spread yourself thin trying to be all things to all people.
Despite taking on some pretty ridiculous business ventures already (anyone have a Tesco computer?), it doesn’t seem to phase them. With the recent announcement of half year profits of £1b (they only crossed the £1b a year hurdle 3 years ago) it would seem to be oddly paying off.
I am probably one of the worst people to give business analysis on Tesco though as I stopped shopping there years ago. Compared to their competitors their stores are far dirtier, their produce bordering on the ridiculous at times in regard to freshness, and staff that are either non existent or incompetent. I suppose the staffing problem may just be indicative of full employment though as comprehension is the biggest issue.
Me: Can you tell me where the sprinkles are?Them: (Blank Stare)Me: Hundreds and Thousands - Ya know, the little candy pieces you put on Ice Cream?Them: ohhh (They walk me to another aisle and proceed to hand me some Bacon Bits)
It will be interesting to watch if these odd offerings pay off in the next few years. An Post, which is our Post Office, did a similar thing offering every service you could think of. In their case however it resulted in massive losses as they struggled with their identity. Their core service of mailing things suffered the most and instead of fixing their issues, they decided to offer extended financial services such as mortgages and advice. It has so far been a disaster.
I would still suggest for those with a small or online business, resist the temptation to try to add profit by taking on unrelated products and expanding your scope. There is way more profit to be had in better sourcing and streamlining. It is a more efficient profit which can be crucial to a business that may have few or no employees.
As far as Tesco is concerned, I look forward to Tesco Hospitals which I am sure aren’t far behind. Maybe they will put in an MRI scanner between aisle 6 and 7.
by jason :- the source is here
Now obviously the same guys who roam the aisles and shrug when you ask them where something is, luckily won’t be programming the new software. They have partnered with a company called Formjet who will handle the software creation while Tesco will handle the branding and distribution. Formjet is known for making knockoffs of Microsoft products with varying levels of success.
This type of strategy by Tesco who already sells car insurance, offers financial services and petrol seems to really fly in the face of what most business advisers will tell you. The conventional way of thinking has always been to find your strengths and improve/innovate on them rather then spread yourself thin trying to be all things to all people.
Despite taking on some pretty ridiculous business ventures already (anyone have a Tesco computer?), it doesn’t seem to phase them. With the recent announcement of half year profits of £1b (they only crossed the £1b a year hurdle 3 years ago) it would seem to be oddly paying off.
I am probably one of the worst people to give business analysis on Tesco though as I stopped shopping there years ago. Compared to their competitors their stores are far dirtier, their produce bordering on the ridiculous at times in regard to freshness, and staff that are either non existent or incompetent. I suppose the staffing problem may just be indicative of full employment though as comprehension is the biggest issue.
Me: Can you tell me where the sprinkles are?Them: (Blank Stare)Me: Hundreds and Thousands - Ya know, the little candy pieces you put on Ice Cream?Them: ohhh (They walk me to another aisle and proceed to hand me some Bacon Bits)
It will be interesting to watch if these odd offerings pay off in the next few years. An Post, which is our Post Office, did a similar thing offering every service you could think of. In their case however it resulted in massive losses as they struggled with their identity. Their core service of mailing things suffered the most and instead of fixing their issues, they decided to offer extended financial services such as mortgages and advice. It has so far been a disaster.
I would still suggest for those with a small or online business, resist the temptation to try to add profit by taking on unrelated products and expanding your scope. There is way more profit to be had in better sourcing and streamlining. It is a more efficient profit which can be crucial to a business that may have few or no employees.
As far as Tesco is concerned, I look forward to Tesco Hospitals which I am sure aren’t far behind. Maybe they will put in an MRI scanner between aisle 6 and 7.
by jason :- the source is here
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