“Will businesses use the new style "Tesco Law" or will they stick with their trusted advisers?"

 

Steve Carter
Baker Tilly LLP





Many corporate lawyers think the threat of Tesco law doesn’t apply to them.  However, history has shown that customer loyalty can be tested in any marketplace.  Clients’ businesses are made up of individuals and it is the individuals that will make the ultimate decision. 

Even without Tesco law, firms lose major clients or key individuals who take their clients with them all the time. Consider for a moment what actually threatens your business already and how you have lost clients in the past.  What, in the past, have the circumstances been where your clients moved to another firm? 

An organisation that does what you do better or cheaper might be the concern of some and rightly so, there will be new entrants over time with this objective.  However, for other firms the threat could be the new organisation that can pay their key staff more!  Protecting the client base in the future will not be about whether Tesco will have a two for one offer on dispute resolution but will be simply be whether a new entrant will target your clients or offer the talent in your firm better terms and conditions; taking your clients at the same time.