This Artificial Intelligence for Competitive Advantage in Business: Tesco Plc Case Study presents a detailed analysis of AI applications, marketing strategies, and data-driven decision-making
In today’s rapidly evolving business environment, organisations are increasingly leveraging advanced technologies to gain a competitive edge. One such technology, Artificial Intelligence (AI), has transformed various business operations, particularly marketing.
Assignment samples are provided to help students understand coursework structure and key learning outcomes. With our assignment help in UK, guidance is shared while ensuring all work remains original. The Artificial Intelligence for Competitive Advantage in Business: Tesco Plc Case Study explores how Tesco implements AI across marketing, operations, and customer engagement. These materials are intended solely as study aids and reference guides.
Marketing implies for the Firm’s activity associated with advertising, selling and distributing particular product and services (Hatzius, 2023). It is the one of the most pivotal function of the organisation as firm’s overall sales and profitability is influences by marketing efficiency. AI refers to the file of sciences that is concerned over developing machines that could learn, act and work with human intelligences. Tesco is the leading multinational retail organisation of UK which involved in offering huge variety of products such as clothing, homeware, banking and electronics. An annual turnover of Tesco is 67.673 billion pound and has a market share of 28.5% in year 2024 (Description of Tesco, 2025). The current research project is based on determining the impact of AI on overall marketing strategies of the Tesco.
Aims:
The aim behind conducting current study is to analyse the impact of AI on the marketing strategies of Tesco Plc.
Objective:
Research question
Q1. What is the meaning of Artificial intelligences and its importance?
Q2. What are diverse theories and model of marketing?
Q3. What is the impact of AI on marketing efficiency of Tesco Plc?
The current project is based on exploring the impact on Tesco’s marketing strategies due to AI integration. In the current time, AI has been introduced in each area of business operation as to reduce error and boost efficiency. Further, customer’s perception is highly influenced by the information shared through marketing strategy which eventually impact on firm’s profitability (Ameen et al, 2021). Therefore, it is worth studying the impact on marketing due to AI as it is highly linked with entity’s overall profitability. In this context, thematic analysis will be used to explore and gaining nuanced understanding related to topic.
According to Oosthuizen et al, (2021) artificial intelligences refer to the technology that help machines to simulate problem solving, human learning, decision and human intelligences. This aligns with the focus of Exploring the Implementation of Artificial Intelligence to Develop Competitive Advantage in Business Operations: A Case Study of Tesco Plc, as AI enables firms like Tesco to enhance productivity and operational efficiency. This technology aids in enhancing overall efficiency of business entity by automate repetitive task leading to enhancing overall productivity. For example: Tesco has integrated AI in its operation which automated the entire routine task which provides employees with an opportunity to focus on crucial activities and thereby boosting overall productivity. Along with this, Moore, Bulmer and Elms (2022) stated that AI aids in taking data driven decision which aids in creating competitive edge. This technology focuses on analysing past trends and patterns based on which accurate suggestions are offered which ultimately aids in taking accurate decision. This data-driven decision aids in introducing right strategy at right time leading to sustaining competitive edge.
Further, Cao (2021) articulated that AI play significant role in resolving the entire problem and issue which ultimately up boosting overall productivity. This technology offer most valuable and innovative ideas for overcoming particular obstacles and barriers that support enhancing overall problem solving and foster creativity. AI is capable in understanding complex problems and issues which aids in suggesting moat accurate policies and thereby support in flawless working of organization. Sharma et al, (2022) explicated that AI aids in developing personalized and high quality content on larger scale which eventually support in adequate marketing and promotion. This technology focuses over developing customized content that influence overall perception of customer and eventually end up boosting their engagement.
Based on the view point of Mogaji and Nguyen (2022) It has identified that four P;s of marketing is one of the most significant theory. This theory stated that firm should offer product that could fulfil customer’s demand, establish prices so that larger section could afford, offers through multiple channels, and introduced integrated marketing which aids in boosting overall sales. According to promotional strategy all diverse challenges should be utilized by firm which help in creating awareness within target market and eventually support in boosting sales.
In the views of Fu et al, (2023) it was ascertained that there are various factors which affects the marketing strategies of the companies. It is due to the reason that when the effective type of the marketing strategies and theories are implemented within the retail companies then it will be improving the overall efficiency of the business. Oosthuizen et al, (2021) states that technology is a major factor which affects the working of marketing efficiency to a great extent. It is due to the reason that when the companies are implementing the use of latest technology then it will motivate the consumers to buy the product of the company. On the other side, Gupta et al, (2024) argued that the attraction of the consumer also depends on the mode of advertisement as well. In case the mode of advertisement selected is not good then it will be impacting the efficacy of the company.
Hence, it is necessary for the retail companies that they must effectively select the strategies of marketing well. In case it will not be implemented well then it will be creating a major issue in the successful working of the company.
In the views of Cao (2021) there is a strong relation between the use of AI and the marketing efficiency of the companies. This is evident in studies such as Exploring the Implementation of Artificial Intelligence to Develop Competitive Advantage in Business Operations: A Case Study of Tesco Plc, which highlights how AI tools, such as predictive analytics, contribute to strategic decision-making and competitive advantage in retail marketing. It is due to the reason that currently, the use of digital technology is increasing and as a result of this the overall efficiency is improved. For example, Tesco makes use of AI-powered chatbots for improving the consumer experience. Thus, as a result of this the overall capability of the company will be improved and better engagement of consumer will be made. On the other side, Kundu, Mustafa and Chola (2023) argued that implementing the use of AI is costly and this can impact the working of the company. The reason underlying the fact is that when the effective type of technology is implemented then it includes a lot of cost for maintenance and also regular updates are analysed.
Further, Malikireddy, (2024) contemplated that the use of AI into the marketing strategies of the company assist in developing a good relation with the consumers. For example, Tesco implements the use of predictive analytics for storing and forecasting of the future data relating to the consumers. This is because of the reason that when the data will be used to predict the future demand with the help of AI then it will be more accurate and precise. Ultimately it will be improving the overall efficiency of company and better improvement can be made. On the other side, Anica-Popa et al, (2021) argued that selecting the best AI strategy needs a lot of time and research to be implemented. Thus, it is necessary for the company to effectively try to research a lot before using any of the AI strategy.
Moreover, Heins (2023) also states that the use of AI is also implemented for providing personalised recommendations to the consumers. This improves the marketing of the company and as a result of this the overall efficiency is improved. Further, when the personalised and customised services are provided to the consumers then it improves the capability of company and ultimately the market position is improved. On the contrary, Stanciu and Rîndaşu (2021) states that for providing the customised options to the consumers, the companies has to incur a lot of cost.
Prior studies have been initiated for identifying the influence of AI in enhancing efficiency and better productivity. However, concentration was not paid over identifying its impacting on boosting marketing efficiency (Ho and Chow, 2023). The current study will depict on all such impact that widen the understanding of other scholar.
Research philosophies imply to set of assumptions, principles and beliefs that underlines manner through which study could be conducted (Taherdoost, 2022). It has been divided into two parts that includes interpretivism and positive philosophies. In the context of present study, positivism philosophies have been utilised which emphasis over evaluating scientific evidence such as statistics for gaining accurate understanding. This method has been selected as it offers more reliable, accurate and trustworthy information which aids in making scientific assumptions. Moreover, this method follows set structures that reduce scope of variances and error and ultimately offer accurate information. Further, this method has been used as it is offer framework for objective knowledge and based on scientific evidences that support in easily identifying AI impact.
Research approach implies to the process selected by researcher for gathering, evaluating and interpreting data. There are two types of research approaches which includes inductive and deductive approach (Kamper, 2020). For identifying impact of AI on marketing efficiency, deductive approach will be utilized by researcher. Deductive approach is the logical and up to down approach which emphasis over specific conclusion from general ideas. This method has been selected as it offer evidence based result which aids in better understanding and knowledge. Moreover, this method aids in establishing cause and effect relationship which support in gaining better knowledge. Along with this, deductive approach aids in offering strong evidence of theories, support in prediction and facilitates hypotheses testing that enhances overall understanding regarding topic.
Research design refers to the framework of techniques and methods used for conducting particular study. There are two major type of research design that includes qualitative and quantitative method (Mulisa, 2022). In the context of present study, qualitative method has been chosen by the research that aids in collecting numerical and statistical information. This method has been selected the impact on marketing could be easily understood in numerical stance which aids in forming better conclusion. Further, this information could be easily verified which aids in gaining more reliable and accurate information.
Research strategy refers to the specific mythology and plans for addressing research questions, objectives and advances the field (Hasan et al, 2021). It has been classified into three types which include case study, focus group and ethnography. For identifying AI influences on marketing, Case study method has been used which aids in conducting detailed study of the specific study. This method supports in promoting flexibility which aid researcher in selecting most appropriate method for conducting study.
Time Horizon
In the current study, cross-sectional time horizon has been used which is cost and time effective method. Further, this method includes capturing specific point of time and support in analysing assumptions.
Data collection implies to process of taking decision on basis of evidences rather then assumption by gathering data from multiple sources. This process has been classified into two broad types which includes primary and secondary method (Suri, 2020). For exploring impact of AI on marketing efficiency, research has used both the methods. Primary method supports in collecting topic specific and original information leading to gaining in-depth information. In this regard, 25 manager of Tesco have been surveyed via questionnaires. Moreover, secondary data has been also collected as to support collected data and to gain large amount of data. In this regard, diverse blogs, websites, journals, website and journals has been analysed.
Sampling implies process of selecting the group and respondent from whom the required information will be gathered (Char, Abràmoff and Feudtner, 2020). Random and non random samplings are two distinct methods of samplings. In present study, for exploring impact of AI, random sampling method has been selected as it reduces bias and offer more representative information. In this regards, Random sampling method has been used to select 25 managers that has been surveyed.
Data analysis implies to method of cleansing, inspecting and modelling information for discovering useful information (Newman, Guta and Black, 2021). Thematic and SPSS are two broad categories of data analysis. In the present study, thematic data analysis method has been utilized that support in gaining in-depth information related to topic. Moreover, all the collected information has been arranged in table and represented through graphs that ease process of interpretation.
The entire participant should have experience of 2 years and above the age of 30. Moreover, all the books and journals after 2020 have been selected as to gain most accurate information.
Theme1 Tesco is utilising AI in its marketing
| Particular | No of respondent | % of respondent |
|---|---|---|
| Yes | 22 | 73 |
| No | 6 | 20 |
| Not sure | 2 | 7 |
| Total | 30 | 100 |
Interpretation: It has identified from above table that Tesco is utilising AI in their operation. In support of findings, Ameen et al, (2021) stated that AI aids in boosting efficiency, reduces errors and mistake and thereby enhance productivity.
Theme 2 It has believed that AI support in boosting overall firm’s efficiency
| Particular | No of respondent | % of respondent |
|---|---|---|
| Strongly agreed | 8 | 27 |
| Agreed | 9 | 30 |
| Neutral | 4 | 13 |
| Disagreed | 2 | 7 |
| Strongly Disagreed | 7 | 23 |
| Total | 30 | 100 |
Interpretation: The above table indicates that more than 50% of total population believed that AI support in boosting overall efficiency. In this context, Hatzius (2023) explicated that AI aids in automating task, predictive analytics that support in enhancing efficiency.
Theme 3 Technology factor has huge impact on overall marketing efficiency
| Particular | No of respondent | % of respondent |
|---|---|---|
| Technology factors | 17 | 57 |
| Employee’s skills | 3 | 10 |
| Mode of advertisement | 5 | 17 |
| None of the above | 5 | 17 |
| Total | 30 | 100 |
Interpretation: Majority of total resplendent believed that Technology change is major factor impacting on marketing efficiency. Kopalle et al, (2022) articulated that effective technology support in mitigate mundane takes which aids in boosting marketing.
Theme 4 Personalized recommendations is major advantage of AI in marketing
| Particular | No of respondent | % of respondent |
|---|---|---|
| Customer segmentation | 2 | 7 |
| Predictive analytics | 6 | 20 |
| Personalised recommendations | 19 | 63 |
| Chabots | 3 | 10 |
| Total | 30 | 100 |
Interpretation: It has been assessed that personalized recommendation is crucial marketing advantages. In support of this, Cartwright, Liu and Davies (2022) stated that AI provides personalized recommendations which aids in attracting larger target market.
Theme 5 it has believed that AI aids in taking data driven decision
| Particular | No of respondent | % of respondent |
|---|---|---|
| Strongly agreed | 13 | 43 |
| Agreed | 6 | 20 |
| Neutral | 2 | 7 |
| Disagreed | 5 | 17 |
| Strongly Disagreed | 4 | 13 |
| Total | 30 | 100 |
Interpretation: From the above table, It has been identified that AI support in data-driven decision which boost overall efficiency. In this, Zhou et al, (2021) explicated that AI is involved towards determining patterns in past data that help in taking accurate decision.
Theme 6 Lack of human touch is major AI challenge in Marketing
| Particular | No of respondent | % of respondent |
|---|---|---|
| Concern of data privacy | 5 | 17 |
| High resistance | 6 | 20 |
| Lack of human touch | 14 | 47 |
| All of the above | 5 | 17 |
| Total | 30 | 100 |
Interpretation: Majority of respondent believed that lack of human touch is major AI issues in marketing.
Theme 7 Algorithm Biasness should be reduced while using AI in Marketing
| Particular | No of respondent | % of respondent |
|---|---|---|
| Enhance AI transparency | 4 | 13 |
| Better integration in diverse channel | 6 | 20 |
| Improve personalization | 4 | 13 |
| Reduce algorithm bias | 16 | 53 |
| Total | 30 | 100 |
Interpretation: From the above analysing, it has been discovered that Algorithm biasness should be reduced for enhancing overall efficiency of marketing.
6 Years | PhD
Discussion
From the above findings, it has been identified that AI support in enhancing efficiency and aids in offering personalised content recommendations. The study Exploring the Implementation of Artificial Intelligence to Develop Competitive Advantage in Business Operations: A Case Study of Tesco Plc demonstrates that technologies like Roambee’s AI-driven platform allow Tesco to deliver hyper-personalised marketing, thereby improving customer engagement and overall market performance. Tesco has introduced Roambee’s AI driven platform which aids in offer hyper personalization in marketing and thereby boosting sales. This technology supports in offering personalized promotion to customer which aids in influencing their overall perception (AI-Driven marketing In Tesco, 2025). This could be supported form Literature review, where it has stated that AI consists of analytics capability that helps in offering personalization (Pradhan et al, 2023). Along with this, AI aids in data driven decision which support in providing accurate marketing strategies and thereby boosting overall profitability. Tesco utilized AI which is involved in regularly analysing data sets that support in providing dada driven suggestion and ultimately influences overall marketing. However, it has been determined that lack of human touch is major issue that is aced by organization (Hudders and Lou, 2023). Tesco observed that due to lack of human touch, marketing content lack emotional touch which creates issue in attracting large number of customers.
Insufficient cost and time was major obstacle that impact on overall efficiency of the research. To overcome cost issue, secondary method has been used that aids in gathering huge amount of data in fewer time and cost. Further, thematic approach has been utilized that aids arranging huge data in tables and support in better interpretation.
The current study enhances my understanding regarding the process of research which aids in conducting in-depth study in upcoming time. Further, I have also developed knowledge regarding AI impact on marketing which support in professional development. This knowledge supports me in effectively integrating AI in marketing strategies as to attract target market in upcoming time.
Instead of quantitative methodology, qualitative method could be used in future which aids in exploring perception and opinion of respondent and eventually result in better understanding. Moreover, interview could be conducted that aids understanding respondent’s perception and beliefs and thereby offering accurate outcome.
Conclusion
By summing up the report, it has identified that AI play crucial role in boosting overall marketing efficiency. In this context quantitative data has been collected through primary and secondary sources which aids in collecting all the relevant information. It has identified that AI support in boosting efficiency, reducing error, offers personalized recommendations and attract larger target market. However, algorithm biasness, data privacy issue and lack of human touch are major issue in AI within marketing.
Recommendation
Following strategies should be incorporated for enhancing overall marketing efficiency:
References
Ameen, N., Tarhini, A., Shah, M. and Madichie, N.O., 2021. Going with the flow: smart shopping malls and omnichannel retailing. Journal of Services Marketing, 35(3), pp.325-348.
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