It is important to understand the nature of a service because then it will be clear that the customer is extremely important for a service to be managed efficiently and profitably. Tesco followed this stance and treated the customer as the king by providing them what they demanded. The service process matrix will show where Tesco stands and in retailing it has achieved a good reputation plus a broad customer base. Tesco is a retailer thus it falls under high degree of labor intensity and low degree of customization.
Tesco falls under the Mass Service where the degree of labor intensity is high which means a good amount of labor is required and for substantial work but the degree of interaction and customization is low in these services since the organizations involved provide standard services to the masses but customer satisfaction and loyalty is a priority because without loyal customers these organizations have a chance of losing customers to competitors. These firms compete on the basis of customer satisfaction only and they aim to provide all sorts of services in the best possible manner to the masses so customization and interaction is low. But consumer is still the king in the sense that the basis of competition is customer satisfaction. So these services aim to provide for the customers only and treat them as kings since their needs and wants are met even before they can anticipate for them. Thus Tesco is a successful plc and this is the major reason for focusing on this organization (Fallon, 1992).
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