Tesco set to take Amazon on head to head

Posted on March 8, 2013

 

The landscape for online shoppers looks set to become a tad more combative over coming months, as Tesco sharpens its horns and levels them squarely at Amazon.

The retail giant this week launched a catch-all digital entertainment service, under the blinkbox brand. Tesco acquired the video streaming service in 2011, and this is the first time it has really run with it in a big way.

The launch will see the creation of a number of channels, including blinkboxmusic and blinkboxbooks. No doubt Google and Amazon will both be on their toes to respond.

The intention to challenge the big two in their own domains is clear. Key positions in the new project are to be taken up by big-hitters Gavin Sathianathan from Facebook and Sainsbury’s Mark Bennett.

The entertainment service will also include the catchily titled (ramp-up) Clubcard TV, which has been in beta for sometime.

Perhaps one of the biggest challenges for the scheme is to deliver a successful search engine optimisation strategy.

In many ways, it is a tit-for-tat move. Amazon recently diversified into groceries and, whilst it has not been a huge success, the SEO results are positive.

The mobile market is seen as a key driver behind the project too, with a spokesman for the retailer saying:

“If you take the blinkbox strategy, it started on web but now it’s about being where people are.

“Our device strategy is tablets. Tablets will be very significant for blinkboxbooks for example.”

Whilst the UK market is the only one being targeted presently, the spokesman also suggested that a move into foreign markets will be forthcoming.

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