Question

The Tesco case was discussed in the Week 2 Interactive Tutorial. Companies like Tesco gather a massive amount of data through different loyalty card programs. Typically, the shoppers fill out an application form in the shop and receive a plastic card and a key fob* in the mail that is scanned before they make a purchase. In this way, the companies gather massive amounts of data about their customers’ millions of purchases each week. From a company perspective, this is the sales data which plays an essential role in the accounting information system. Then, the data analysts of these companies analyse these sales data and turn it into useful information.

Required:

1. a) How can this information be used to get a competitive advantage? [3 Marks]

2. b) What else can these companies accomplish from this collected data? [2 Marks]

3. c) What are the risks associated with these types of loyalty cards? [2 Marks] No Plagiarism Please. write in 300 words thanks you

Answer 1

(a)

Exploiting the information Tesco can offer way better items, significant items, and superior administrations to clients. This will offer aid in pulling in more clients on a sustainable foundation and thus will allow Tesco a viable benefit.  

(b)

Companies too use the information for the purpose of implementation assessments of workers and articulating unexploited encouraging force plans for the workers. Companies furthermore exploit the information to rationalize their deals pipeline administration as well.        

(c)

Buys made at other stores cannot be followed and thus there's the chance of one-dimensional examination of behaviors of clients.    

Step-by-step explanation

(a)

This information can be exploited in a defined and unambiguous way to persuade a modest benefit. Tesco may be a plain need and common stock retailer and the sales information that it has can be scrutinized to pick up distant better; a much better; a higher; a stronger; an enhanced" a much better empathetic of its clients and their buying designs and their needs.

This will allow Tesco to stock those things and products that clients require and thus it'll be in a much better position to meet all wants and requirements of clients. It'll furthermore offer support Tesco to plan and perform its encouraging programs and occasions in distant better a much better; a higher; a stronger; an improved"a distant better way, hence authorizing it to reach its target clients in a more balanced and adjusted way.

Utilizing the information Tesco can offer way better items, significant items, and superior administrations to clients. This will offer assistance in drawing in more clients on a maintainable premise and thus will allow Tesco a competitive advantage.      

(b)

Companies like Tesco can fulfil a part of other things by using the collected information. The deals information can be utilized for the purpose of trouble as well as growth. Deals' information inspection will counsel companies almost the changes taking put and what should be changed inside the company in order to endure relevant.

This will allow companies to improve and disturb by recognizing market changes rapidly and after that adjusting to it. Deals' information is additionally utilized to persuade workers. Representatives particularly deal representatives, are given a measureable metric on the evidence of deals information and successively, they are able to work in a more skilful way.

Companies too use the information for the reason of implementation assessments of workers and articulating idle inspiring force plans for the workers. Companies moreover utilize the information to streamline their deals pipeline administration as well.        

(c)

The first chance connected to these sorts of reliability cards is that of a chance of personality burglary, information robbery, and extortion. Companies are required to have genuine control frameworks in arrange to guarantee that information of clients is secure and secure.

This, in any case, cannot be completely ensured and consequently may be an enormous hazard. Another chance is that a company will not be able to track in the general behavior of clients as the devotion cards will offer assistance to the company to track a client as it were for buys made at its store.

Buys made at other stores cannot be followed and thus there's the chance of one-dimensional examination of behaviors of clients.