Tesco And Sainsbury
What strategies did Tesco use to be more successful than Sainsbury?
Throughout the 1980's and the first half of the 1990's, Sainsburys was the market leader and the dominant force behind grocery retailing in Great Britain. However, in 1995 Tesco accelerated past them to become the number one in this country with 17% of the market share and the gap between these two major players has widened every year since as Tesco has continued to increase share and Sainsburys had drifted downwards.
With regards to customer bargining power Tesco was the first to introduce the club card. Sainsbury's dismissed the card as a gimmick but were soon to lose out on sales to Tesco and in the latter part of 1995. Offering points on purchases using the card and giving a small rebate to loyal shoppers. Dismissing the initiative as nothing new, Sainsbury did not realize that Tesco was capturing valuable information with every swipe of the card and building a powerful database of customers, which it......
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