Ocado Business Model UK: Assignment

Added on - 16 Sep 2019

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Ocado
Table of ContentsIntroduction......................................................................................................................................2Objective..........................................................................................................................................2Ocado Business Model....................................................................................................................3Hybrid Model...................................................................................................................................3Problems Ocado may face due to change its current business Model.............................................3Soft System Methodology to solve existing problem......................................................................4Business Operations Model.............................................................................................................4Comparison of Soft System Models and Selection of Best model to solve above-mentionedproblem............................................................................................................................................5Objective (Parcel Conundrum)........................................................................................................5Issues................................................................................................................................................5Solutions..........................................................................................................................................6Analysis of customer’s Digital Experience.....................................................................................6Innovative Ways of serving customers............................................................................................7Target Market Sector with Hybrid Model.......................................................................................7Conclusion.......................................................................................................................................8References........................................................................................................................................92
IntroductionOcado is considered as the famous UK based dedicated online grocery retailer. It has more than580,000 active customers shopping on a daily basis. Its main objective is to provide the bestshopping experience to their customers and deliver huge satisfaction to them. In this paper, wewill study the Ocado, and it's changing business models to provide huge satisfaction to itscustomers. Apart from this objective and business model adopts by the Ocado also studied underthe light of certain concepts and theories propounded by the different authors. Ocado offeredsuch 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 itscompetitors like Morrison. There are a large number of components which make Ocado asuccessful business organization and help it in an efficient operation management. Theseelements are; flexible agreement terms with ongoing fees, low cost of entry, operational costbenefits, or modular and scalable features. The combination of all these elements enforces it todeliver the best shopping experience to its customers and gain a competitive advantage inexisting market.ObjectiveThe main operations specific objective of the Ocado Company is to align the interests of itsdifferent customers, investors, and other stakeholders to deliver long-term shareholder value tothem. The main motive behind this objective is to drive growth by maximize efficiency andutilize proprietary knowledge in right direction. Apart of all this, another objective of the Ocadois to provide the quality worth and the cost-effective products and services to their customers.3
The main motive behind this objective of the Ocado is to earn sufficient profit and win theconfidence of the individuals. Moreover, customer satisfaction is its big criteria. For thefulfillment of this objective, it comes up with smart solutions and efficient strategies. Thesesolutions help it to serve the demands of customers by satisfying them in greatest manner. Thecombination of all these objectives helps it to satisfy the requirements of the customers atreasonable market price. This ultimately enhances its image in the eyes of customers.Ocado Business ModelBefore adopting the Hybrid model, it follows the operating and virtuous cycle model to manageits day to day operations and online platform. The main motive of the organization behindadopting this model is to create a virtuous cycle of innovation, investment, efficiency, andgrowth (Bocken, 2014). Operating and Virtuous cycle model helps it in deliver a best-in-classservice in the most operationally efficient way to drive long-term profitability and growth. Butdue to the inefficiency and drawbacks of these business models, Ocado was not able to use themfurther 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 followsby its strong competitor Morrison. Morrison strategies and the business models are so efficientthat it can compete with the strong competition in an easy manner. Apart of this, Morrisonbusiness structure is so flexible it can make changes anywhere and anytime as per the customer'srequirements.4
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