Case – Ocado Harvard Case Solution & Analysis

Case - Ocado Case Solution 

Would you say that Ocado has been successful? Why or why not?

  • Ocado is a successful company as it has introduced new and innovative ways of retailing.
  • Ocado is a profitable organization and recently reported a profit of $7.2 million.
  • Although the company did not report profit last year however,the company has a good future prospect.
  • As the company is growing, therefore the marketing expenditure of the company is high and the company intends to achieve a better position in the retail industry.
  • The revenue of the company indicates a growing trend, which indicates that the customers base of the company and market share is growing.
  • The current market share of the company is almost 14%. The product wastage ratio of the company is also reducing, which indicates that the company’s efficiency is improving over time.

 What is your estimate of the share, as of 2025, of online grocery shopping in the U.K., in 
your home country, and in other countries you know?

  • The calculation indicates that the company’s market share will increase to 38% in the online retail industry of United Kingdom.
  • With 38% of market share, the company has the total value of revenue, which stands at around 10 billion in 2025.
  • For the calculation purposes, the average historic change is taken into consideration, which is a valid assumption for the forecast.
  • Itis also assumed that the small competitors’ growth in revenue will be 3% for the foreseeable future. Therefore, the estimates are indicative rather than conclusive.
  • These estimate shows that the company has commercially viable future prospects as the company provides better and innovative facility towards the customers.
  • The demand side also expects more from the online distributors, which indicates that in the developing economies the demand of better online retailers is high especially in China and India.(Cheng, 2015)
  • The company can provide online store to various countries of the world to become an international retailer like Amazon.
  • However, it is recommended that the company should start its operation indifferent countries gradually because sudden increases of customers’ orders will affectthe company’s operations and the quality of service can be affected through mass providence.

Do you think that the Ocado Smart Platform strategy will be successful? In which countries? With which retailers?

  • For better customer satisfaction, the company adopted a smart platform strategy, which provided the customers with better customized product.
  • It also provided the company with better workforce management, which helped in the bringing effectiveness to its operations.
  • Although the company is facing some challenges regarding its new strategy, which mainly includes the delivery timing of the product to the end users,however the company has remand stead fast to its initial plan and is considering improving the process which would lead towards more progress.
  • These factors indicate that the strategy of SMART platform is successful in the United Kingdom and it would be successful when the company expands its operations to other countries(Foley, 2002).
  • Major retailers of developing countries, where the consumers’ expenditure on food is high, can get many benefits through this platform as the Smart platform provides better delivery of the product to the end customers.
  • Some example of countries, where consumers’ spending on food is high, are such as: China, India, and Brazil.

Into which country or countries should Ocado expand first? Why? Should it consider entering your home country? Why or why not?

  • The company should expand its operation from Asia pacific as the online retail industry of Asia Pacific is growing significantly and almost 38% of the customers tend to order their food online.......................
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