Ocado Versus Tesco.Com Harvard Case Solution & Analysis

IMD-6-0323 © 2010
Tsikriktsis, Nikos; Keller-Birrer, Valerie

In 2009 several businesses were competing in the United Kingdom for a share of the fast growing on-line grocery store market, using two distinct company strategies. Ocado, an only on-line grocer operated out of a distribution center that is dedicated. By 2009 Ocado had grown from its first three founders to over 3,000 workers and was just about to become profitable.
Ocado Versus Tesco.Com Case Study Solution

It faced competition from Tesco.com, the largest on-line grocer in the world. The UK's top supermarket chain, Tesco, had began an internet add-on to its routine company and used existing supermarkets to run its online operations. Learning objectives: This instance compares Ocado and Tesco.com business models from a consumer proposition, operational efficiency, profitability and sustainability perspective. Participants will be challenged to consider the challenges on-line grocers face to match with shoppers’ expectations, how operational choices impact the consumer proposition and what chances both firms need to further grow their company.

Subjects: Online grocery retailing; E-Commerce; E-Business; Supply chain; Customer orientation
Settings: U.K.; Online grocery retailing; 3,000 employees; 2009

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