More companies join the tablet industry as UK supermarket Tesco shifts its focus to developing a tablet. According the reports, the UK-based company will be launching a tablet device for the holidays. The move is part of the company's strategy to sustain its profitability taking a leaf out of the pages of competitors like Amazon and Apple.
Will the Tesco device be like Amazon's Kindle Fire?
The Sunday Times reported that Tesco will be using a similar model which inspired Amazon's Kindle Fire HD. This meant the tablet from Tesco will also have "high quality" components together with good or aggressive pricing. Amazon's Kindle competed excellently largely because it is affordable. The company used sales of digital content to boost their returns on the device instead of the price of the gadget itself.
Tesco will be including their Blinkbox movie streaming service as a central component of the device. Films, music and books would also be pre-loaded in the device, thus giving consumers more access to content and files. The additional content should increase the appeal of the tablet on the market.
The company considered the inclusion of the Blinkbox as the most essential component of their marketing approach. Tesco believed that adding a streaming function to help people have better access to their desired content can rival Spotify. This should also increase the market value of their tablet.
Depending on the functions and other utilities provided as part of the tablet, Tesco seemed to be planning subscriptions to Tesco Mobile as well. The tablet can be supported under the Mobile Virtual Network Operator (MVNO) of the company.
Apart from boosting profitability of the company, Tesco also wanted to establish a better relationship or rapport with younger consumers. The firm believed it can do so through the release of the tablet. Younger customers offer great sales potential, and engaging them can ensure better sales. Without proper engagement, these people can easily shift or transfer to the next store.
The Tesco tablet will also feature grocery service apps related to the company. Philip Clarke, Tesco's CEO, emphasised that they want to sustain their tradition of "millenials." This meant they want to retain their consumer market born between 1980 and 2000. These people are beginning to rent or purchase their own homes, making them an ideal market for the UK supermarket.
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