My Top 5: Lessons from Tesco to Vodafone
Telco 2.0 have discussed this and as I read the article I thought Tesco has a lot of other things in its’ locker which could be used an example for Vodafone. Here are my personal thoughts on #2 to #6
2. Coverage & Availability
Tesco is forever working on improving its’ coverage, whether it is buying convenience stores and hoarding sites with planning permission. Tesco is also quite innovative, for instance investing in the Internet Based Home Delivery with a different business model when all around them were retreating. Even today, Tesco are in the news for lobbying to increase the Sunday Trading Hours.
I’m sure Vodafone have loads of road testing going on and they are continually improving the network, but the problem is that you never hear of them. Verizon Wireless, the US Joint Venture, is forever harping on about their coverage and the attempts to improve it - VZW have turned this into a real competitive advantage. This is not just a competitive advantage in Voice, they also promote their 3G Data Cards mocking the coverage and usability of WiFi Hotspots. I believe Vodafone could do a lot more in terms of improving coverage, especially indoor 3G and also should be promoting this as a competitive advantage.
3. Think Local
The products that Tesco sell in a
4. New Ventures
Tesco is never frightened to move into new areas to gain a larger slice of their customers spending. We saw it start in the
O2 have successfully diversified into Emergency Services communications which is proving to a nice earner and BT is doing the same partnering with local councils building metropolitan wireless networks. I feel Vodafone
5. Every little Helps
I love Tesco’s tagline and the fact that its’ been rammed home into most people’s mindset. To me, it creates a image of company continually improving itself: working for the customers by bring down prices and most importantly, continually working for its’ shareholders by continually improving market share, moving into new product areas and new geographic areas.
Vodafone would love a message like that which is believed to both customers and shareholders.
6. Stick to your Guns
Another thing that the Vodafone board should draw heart from is that despite being one of the UKs great business success stories, Tesco is probably loved and hated in equal measure. Tesco actually understand that people continually throw stones at the Goliaths of this world, but it doesn’t make them change direction or strategy. They just plough on and prove people wrong. However, Vodafone recently seem to vacillate with whatever the direction the wind is blowing on a particular day. They end up pleasing no-one and appearing to have no strategy. This may be a particulary harsh view, but all I hope is that Sir John Bond can turn this around before another great British company is ruined.