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ID : 52309353 Sep 2020 13 pages

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COMPANY PROFILE -Ocado

Business Sector :Retail, Online Food and Grocery

Operating Geography :Europe, United Kingdom

About Ocado :

Ocado Group Plc. is a United Kingdom-based online grocery retailer, headquartered in Hatfield, Hertfordshire, England. The corpus of this corporate, along with its subsidiaries, centres on retailing and distribution of high quality FMCG commodities within the United Kingdom. Ocado's product line boasts of own brand groceries from the Waitrose supermarket chain, a range of Carrefour's products and an array of name brand groceries and other items. The company got listed on the London Stock Exchange in July 2010 and is currently a member of the FTSE 250 Index. Ocado has about 12,000 employees as of November, 2016.
Ocado’s mission statement as per their annual report published in 2018 states that “Powered by fresh thinking, we strive for new and improved ways to deliver the world’s most advanced end-to-end online shopping and delivery solutions. We are built for this – nobody does it better.”

Ocado Revenue :


£1,463.8million – FY ending 03rdDecember 2017
£ 1,271.0 million – FY ending 27thNovember 2016

Competitive Analysis of Ocado

SWOT
The SWOT analysis for Ocado is presented below:
Strengths
Weaknesses
1. Strong technology platform and proprietary software
2. Ocado’s expansion of own brand range
3. Competitive pricing and wide range of grocery on offer
4. Partnerships with strong brands such as Morrisons, Waitrose and Carrefour
1. Operations dependent on revolving credit facilities and debt
2. Exposure to a single market and relatively small scale considering the overall UK grocery market
Opportunities
Threats
1. Expansion by replicating the business model in other lucrative European markets
2. Technology investments to enhance capabilities and competitive advantage
3. Licensing of robotics enabled automated warehouse platform
1. Brexit may cause economic slowdown reducing consumer spending
2. Competition from online retail giants such as Amazon Fresh
3. Intense price-wars across grocery retail sector eroding margins
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Detailed SWOT Analysis of Ocado

Strength

1. Strong technology platform and proprietary software: Ocado has unique end-to-end operating solution with its own proprietary technology, Ocado Smart Platformwhich supports its online retail operations as well as of its partners such as Morrisons. The platform provides customizable solutions depending on the retailer-partner’s specific requirements.Other features such as general merchandise, loyalty schemes orgrocery range extensions can also be integrated into the platform. Online is forecast to be the fastest growing channel in UK grocery segment and as the retail business grows the platform can be scaled whilst achieving cost efficiencies. Ocado is well positioned to ride the growth and the company is implementing continuous incremental innovations on the Ocado Smart Platform in a “live retail”environment to further drive efficiencies for its customers and partners.

2. Ocado’s expansion of own brand range: Over the last few years from 2013 to 2018, Ocado has majorly focused on developing and expanding its own in-house brand and private labels to strengthen its brand presence. Further according to the Rabobank, which is a food and agro focused organization, frozen food will be the next growth driver in online grocery. In line with trend, Ocado also launched its own frozen food range 2015.

3. Competitive pricing and wide range of grocery on offer: One of the Ocado’s major strength and success factor has been the competitive and transparent pricing policy. The grocery retailer price matches its products with Tesco, the market leader and if there are any variances, the customers get refunds in form of vouchers. Further Ocado provides a broad range of products on its Ocado.com webshop through its 48,000+ SKUs (Stock Keeping Units) and with no physical stores, the grocer does not need to worry about online/offlineSKU alignment. The products range from national brands, private-label products as well as niche and specialty brands

4. Partnerships with leading retail brands in UK and Europe: Ocado has entered into partnerships and alliances with leading European retailers such asMorrisons, Waitrose and Groupe Casino. With Waitrose, Ocado has a product souring partnership till 2020 while with Groupe Casino, Ocado has signed a deal in 2018 to develop the Ocado Smart Platform in France. In 2017, Ocdaoalso launched its Ocado Solutions store picking capabilitywith Morrisons.com. These partnerships and alliances are providing Ocado the requited leverage for expanding and strengthening its market presence.

Weakness

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Opportunity

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Threat

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Major Brands :

Ocado, Fetch, Sizzle and Fabled
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Ocado SWOT and PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). Ocado SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/ocado/ [Accessed 15 Dec, 2020].

In-text: (SWOT & PESTLE.com, 2020)

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Ocado SWOT and PESTLE Analysis
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