business news in context, analysis with attitude

• In the UK, the Sunday Times reports that Tesco plans to launch its own tablet computer, designed to help it compete more effectively with both Apple and Amazon.

According to the story, "The iPad-like device is expected to go on sale in time for Christmas, with pre-loaded books, films and music. It will also have apps for Tesco’s digital grocery and banking products and Blinkbox, its internet film and music service."
KC's View:
I was intrigued by two sentences from the story...

• "Tesco is set to ambush Apple and Amazon with the launch of its own tablet computer as it fights to win back shoppers in its British heartland."

• "The move is aimed at repelling the advances of Apple and Amazon, which have wreaked havoc with Tesco’s profitable books and DVDs business in recent years."

First of all, it isn't going to be much of an ambush if Apple and Amazon known about the product introduction three months in advance.

Second, I'm simply not sure that this is an effective use of resources. When companies wreak havoc on your business model, it does not necessarily make sense to introduce a "me, too" offering. Rather, a company has to find a way to either leap-frog the competition, or come up with something completely different.

Of course, I could be wrong about this. As long as Tesco doesn't promote its new tablet as being fresh and easy...