Enhancing Customer Experience through Hybrid Model and Innovative Ways

Ocado, an online food retailer, is facing challenges with its traditional business model. To overcome these issues, the company needs to adopt a hybrid model that combines the benefits of online and offline shopping experiences. This new approach will help Ocado to increase its sales, improve customer satisfaction, and gain a competitive advantage over its competitors. The hybrid model can be achieved through innovative ways such as offering better after-sales services, high-quality products, and attractive discounts to regular customers.

Ocado

Table of Contents
Introduction......................................................................................................................................2
Objective..........................................................................................................................................2
Ocado Business Model....................................................................................................................3
Hybrid Model...................................................................................................................................3
Problems Ocado may face due to change its current business Model.............................................3
Soft System Methodology to solve existing problem......................................................................4
Business Operations Model.............................................................................................................4
Comparison of Soft System Models and Selection of Best model to solve above-mentioned
problem............................................................................................................................................5
Objective (Parcel Conundrum)........................................................................................................5
Issues................................................................................................................................................5
Solutions..........................................................................................................................................6
Analysis of customer’s Digital Experience.....................................................................................6
Innovative Ways of serving customers............................................................................................7
Target Market Sector with Hybrid Model.......................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
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Introduction
Ocado is considered as the famous UK based dedicated online grocery retailer. It has more than
580,000 active customers shopping on a daily basis. Its main objective is to provide the best
shopping experience to their customers and deliver huge satisfaction to them. In this paper, we
will study the Ocado, and it's changing business models to provide huge satisfaction to its
customers. Apart from this objective and business model adopts by the Ocado also studied under
the light of certain concepts and theories propounded by the different authors. Ocado offered
such facilities which never offered by its competitors. Some of among them are flexible, cost-
efficient, faster, and lower-risk solutions. Such offerings of the company make it popular than its
competitors like Morrison. There are a large number of components which make Ocado a
successful business organization and help it in an efficient operation management. These
elements are; flexible agreement terms with ongoing fees, low cost of entry, operational cost
benefits, or modular and scalable features. The combination of all these elements enforces it to
deliver the best shopping experience to its customers and gain a competitive advantage in
existing market.
Objective
The main operations specific objective of the Ocado Company is to align the interests of its
different customers, investors, and other stakeholders to deliver long-term shareholder value to
them. The main motive behind this objective is to drive growth by maximize efficiency and
utilize proprietary knowledge in right direction. Apart of all this, another objective of the Ocado
is to provide the quality worth and the cost-effective products and services to their customers.
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The main motive behind this objective of the Ocado is to earn sufficient profit and win the
confidence of the individuals. Moreover, customer satisfaction is its big criteria. For the
fulfillment of this objective, it comes up with smart solutions and efficient strategies. These
solutions help it to serve the demands of customers by satisfying them in greatest manner. The
combination of all these objectives helps it to satisfy the requirements of the customers at
reasonable market price. This ultimately enhances its image in the eyes of customers.
Ocado Business Model
Before adopting the Hybrid model, it follows the operating and virtuous cycle model to manage
its day to day operations and online platform. The main motive of the organization behind
adopting this model is to create a virtuous cycle of innovation, investment, efficiency, and
growth (Bocken, 2014). Operating and Virtuous cycle model helps it in deliver a best-in-class
service in the most operationally efficient way to drive long-term profitability and growth. But
due to the inefficiency and drawbacks of these business models, Ocado was not able to use them
further in its life cycle. Due to this, it decided to adopt Hybrid Business Model. In such situation,
instead of going with the Hybrid model, it needs to follow the soft system methodology follows
by its strong competitor Morrison. Morrison strategies and the business models are so efficient
that it can compete with the strong competition in an easy manner. Apart of this, Morrison
business structure is so flexible it can make changes anywhere and anytime as per the customer's
requirements.
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Hybrid Model
Ocado like to go with the Hybrid model by ignoring the operating and virtuous cycle model.
Generally, a hybrid model is the combination of impression based and performance based
models. This model plays an efficient role in splitting the risks and enhancing the popularity and
profit of the organization. Ocado needs to learn by the experience of the Morrison. It will instruct
it’s about the possible business solutions model that it can adopt for further improvements in its
structure.
Problems Ocado may face due to change its current business Model
The sudden change of Ocado business models from Operating to Hybrid will bring a lot of
challenges for the organization. The first problem associated with the sudden change of operating
model to hybrid model is that Ocado will have trouble in attracting and retaining top-notch talent
when it had to compete against a bunch of new organizations that could offer better products and
services to customers (Chang, 2015). Another problem that Ocado may face is the ethical issues
and reduction of market value. The presence of all these issues makes the environment more
challenging and competitive.
Soft System Methodology to solve existing problem
With the help of CATWOE system methodology, Ocado can significantly identify the problems
associated with the chosen hybrid model and can resolve them in an efficient manner. CATWOE
will solve the existing issues by identifying root causes and evaluate them in the presence of
certain facts and theories to resolve them (Sepehrirad, 2017). Apart of this, it allows Ocado
customers to continue order goods online and have these delivered to their door. Furthermore, it
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can also solve the existing problems by following the BATWOVE model as follows by the
Morrison to solve its existing problems. BATWOVE methodology allows it to compare its
business models with the models of the real world. This will bring improvements in business
models by reducing the level of unstructured discussions. Apart of this, with the help of
BATWOVE system methodology, Morrison has made its business scenario and models dynamic.
On the basis of it, Morrison able to competes in its market. In a similar manner, Ocado needs to
learn something from the experience of Morrison and should move in that direction.
Business Operations Model
Ocado can resolve the problems related to the Hybrid model by using the four important business
operation models. These models are; Business strategy performance, four V’s profile, customer
value, and the customer service gap model. The business strategy performance model helps the
company in evaluating the available issues and resolving them by suggesting appropriate
corporate and management strategy. Furthermore, customer value model resolves the issues by
giving the customers proper understanding of driven values offered by the organization. Thus, it
can be said that all business models help Ocado in resolving its problems related to the Hybrid
model and make it more suitable and effective for future.
Comparison of Soft System Models and Selection of Best model to
solve above-mentioned problem
The customer value model mainly focuses on the value rather than business strategies and
performance. On the other hand, business strategy performance model mainly focuses on the
strategy rather than value (Zarei, 2014). Apart of this the customer service gap model mainly
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focuses on the gap identifies between the offerings made by the company and customer
expectations. In all of these four models, customer service gap model will prove more suitable
for Ocado. It is because this model gives a perfect understanding of the requirements of the
today's customers and fulfills them in an efficient manner.
Objective (Parcel Conundrum)
Ocado can deal with the problem of Parcel Conundrum by giving the delivery options of home
and the workplace. By doing this, Ocado can deliver the products at the right time in right hands.
This suggested step will not have any technological and environmental influence (Markham,
2013). But the only thing is that the company needs to pay more attention and efforts on
delivering time schedule.
Issues
Issues associated with the recommended action for Ocado is less? It is because the suggested
step will resolve the parcel conundrum problem in an efficient manner. Apart of this, some issues
which may arise in this step is; centralized inventory, delivery chain, customer value chain, cost
implications, and sustainability. The first and foremost issue is customer value chain. The
recommended step involves consumption of huge time period due to which customer confidence
in the brand highly influences. This hearts the customer value chain towards the organization. On
the other hand, the cost associated with this step is more than simple parcel conundrum. It is
because the organization needs to pay additional costs to staff for working additional hours.
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Solutions
All these issues can perfectly resolve with the efficient business strategies. The presence of the
efficient business strategies helps the Ocado in ignoring the present issues and performs its
business functions smoothly (McQuivey, 2013). This will brings more growth opportunity and
high customer satisfaction for the Ocado. Apart of this, Ocado may resolve the issues concerned
with the Parcel Conundrum by adopting the strategy of its perfect time schedule. This will allows
it to deliver the order on a timely basis in the right hand. Parcel Conundrum situation will
enhance the chances of theft which lost the confidence of the customer in the brand. Due to this,
Ocado needs to go with the recommended solution to avoid all issues arise through the Parcel
Conundrum. After applying the right solution, Ocado can gain the confidence of customers in its
delivering and quality services. This will ultimately enhance the target customers and profit.
Analysis of customer’s Digital Experience
The new chosen hybrid model helps the Ocado in delivering the better digital experience to its
customers. The hybrid model improves the customer experience by offering a large number of
benefits to Ocado. The first and the foremost benefit offer by the Hybrid model has shared the
mission. Shared mission benefit of the hybrid model improves the digital experience by
improving the working conditions and organization structure. Improvement in working
conditions will improve the digital experience by giving high satisfaction to customers. Another
benefit offered by the Hybrid model to Ocado is the hybrid organizational structure. This
organization structure operates on the massive scale that allows more security and high benefits.
Due to this, it can be said that hybrid model has a great capacity to improve the digital
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experience of Ocado customers. Improvement in the digital experience of customers will
enhance its brand image and help in achieving competitive advantage over its competitors.
Innovative Ways of serving customers
Ocado can adopt a large number of innovative ways to serve its customers in an effective
manner. The first one that it can adopt is the better after sales service. By offering better after
sales service, it can win the confidence of its customers in its products and services. The second
way that it can follow is high-quality products (Memon, 2014). Offering high-quality products
will enforce customers to use the product of the same brand again and again. This enhances the
brand loyalty. Another way that it can adopt is offering attractive discounts to regular customers.
It needs to offer attractive offers to its regular customers. With the help of this step, Ocado can
encourage the new customers to be the part of the organization and use its products and services.
With the help of all these ways, it can significantly improve the shopping experience of existing
and new customers can get more growth opportunities in its near future.
Target Market Sector with Hybrid Model
While shopping online, the customers mainly want to avail the best quality products and better
after sales services. Both of these are the important values of customers which they focus while
shopping online (Hahn, 2015). With the new hybrid business model, Ocado can chase and target
the young as well as middle age person. By targeting both of these, it can serve its customers in
an efficient manner and can earn loyalty. Thus, it can be said that youngsters and middle age
people will become the perfect target market for it to earn huge profit and get a competitive
advantage over its competitors.
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Conclusion
After studying all this, it can be concluded that Ocado is performing well with its efficient hybrid
model. This will promote the sale as well as profile. Apart from this, the recommended ways of
service the customer needs to follow by the organization to capture the large size of the market
and earn huge profit.
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References
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Sepehrirad, R., Rajabzadeh, A., Azar, A., & Zarei, B. (2017). A Soft Systems Methodology
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