A Comprehensive Report on Ocado's Strategic Positioning and Analysis

This report provides a detailed analysis of Ocado's strategic positioning within the online retail market. It begins with an introduction to strategic positioning and its importance, followed by an overview of Ocado's segmentation, targeting, and positioning strategies. The report then delves into Ocado's mission and vision, outlining its short-term and long-term goals. Furthermore, it examines the macro-environmental factors affecting Ocado, utilizing a PESTLE analysis to assess political, economic, social, technological, environmental, and legal influences. The report concludes by summarizing the impact of both macro and micro environments on Ocado's business functions and strategic decisions, highlighting how the company adapts to maintain its competitive advantage. References to supporting literature are provided.

Formative Assessment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK1.............................................................................................................................................3
Strategic positioning and mission and vision .............................................................................3
TASK 2............................................................................................................................................4
Macro environment factor of Ocado ..........................................................................................4
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic positioning is referred as a way by which organisation can differentiate their
business from its current market competitors and provide specific values to targeted customers
segment. It is basically the value of an organization in market and customers mind then their
rivals. In this report , chosen organisation is Ocado which is founded in April, 2000 headquarter
situated in England, UK. Organisation develops software for online retailers. In this report,
strategic positioning, mission and vision of respective organisation is being covered. All micro
environment factors and PESTLE analysis are mentioned in this project report.
TASK1
Strategic positioning and mission and vision
Segmenting, targeting and positioning of Ocado organisation- Ocado adopts various market
strategies to make better positioning in the market then their rivals and competitors. These
strategies are discussed below:
Segmentation- segmentation is the process of dividing whole market into small small
segments according to their demographical, geographical and behavioural factors(Agatz, Fan.
and Stam, 2020). Ocado divides their whole market customers in the segments and identify their
preferences or demands and provide them products and services accordingly.
Targeting- In targeting Ocado concentrate upon the specific audience of a segment and
analyse all needs of that target customers and provide services that satisfy them.
Strategic positioning of organisation- strategic positioning is referred as to differentiate
the business from their respective competitors in the market and provide value to target
customers of a segment. Ocado make its different image in the minds of customers by
providing them quality services then their competitors which are conducting their business in
same environment(. Ocado provides various new and quality products according requirements of
customers (Chruściel, 2017). To create good image in the mind of customers the organisation
adopts various competitive strategies to satisfy them.
Missions of Ocado organisation-
Ocado has various short term as well long term missions that are fulfilled in the near
future. These missions are related to provide better services to their customers and satisfy them
with services. Some missions of Ocado are following:

 Ocado main mission is to provide best shopping experience to their customers, customers
are key of business success(. It provides better quality products and services to their
customers.
 Ocado's mission is to empower their employees so they can create innovations in
organisational process. Hence, productivity as well profitability can increased and
organisation can survive in competitive environment (Clarke, 2018). It want to become
leading online retailing service provider and develop market trends.
Visions of Ocado organisation-
Ocado have vision to develop robot chefs in their own warehouses robotic grocery
technology. Supply all these robots to their extreme international partners is the vision of Ocado.
The main objective of organisation is to develop new channel to facilitate the online shopping
and provide delivery solutions to their customer and also better services to their customers then
their competitors,(Vaughan, 2019). The organisation have some long term goal and objective
that are discussed below:
 Ocado's main long term vision is to grow organisation by providing better products and
services to their customers and expand their business across the world in various
countries. It also want to maximise its efficiency. As the software company, its objective
is to provide the better quality services to its customers and cover all market area.
 Ocado decide its long term goal that is properly utilisation of all proprietary
understanding and knowledge to ensure long term growth of organisation and satisfy
customers with organisational services and software.
Ocado analyse all needs and demands of target customers and then launch products in
market accordingly and make innovation in their existing products to satisfy customers demands,
that differentiated the organisation form others(Fraser, 2020). By conducting various training and
development program enhance productivity and profitability.
TASK 2
Macro environment factor of Ocado
PESTLE analysis-
PESTLE analysis is referred as a tool to identify all external factors that are faced by
organisation. It includes all factors that are related to the political, environmental,technological,

social, economic and legal. All these factor affects the functioning of Ocado organisation and
also affects decision making process of respective organization. All external factors of Ocado
discussed below:
Political factors- Political factors affects sustainability and profitability of Ocado
organisation. Political factors are related to the political rules, regulations and government
policies that are different one country to another Changing policies, groups pressure, government
system and rules related to taxes and trades affect Ocado's business in effective manner. Political
stability as well as instability effects the the positive as well negative impact.
Economic factors- Economic factors are related to foreign exchange or interest rate,
inflationary conditions and labour market trends. All these factors help Ocado organization to
understand whole economic environment(Gilham, 2019). Organisation should consider
economic structure, financial market efficiency and current market trends to take effective
decisions of business.
Social factors- Ocado organisation have strong influences of social norms, values and
current trends. The respective organisation should analyse all demographic trends, customers
spending structure and power structures to prepare any marketing planning and strategies
because these all affect organisation's activities. Respective organisation evaluate social trends
and formulate strategies accordingly.
Technological factors- It is important factors of pestle analysis. All technological
advancements and diffusions all over the world increase the value of technological factor in the
decision making process(Yenework, 2018). Technological advancements help Ocado to enhance
productivity, profitability and operational efficiency, so organisation should analysis all
technological trends. Social media marketing, technological and shortened life cycle of product
affect the Ocado as well. Latest technologies in software is adopted by the respective
organization.
Environments factors- Some environmental factors affect the activities of Ocado.
Climate conditions, temperature and dissolved oxygen make it is important to analyse properly.
Climate conditions are different in every country Ocado should recycle and manage waste
products, adopt renewable technologies and analyse all weather as well as climate conditions.
The organisation should obey all regulations of environment for the success of business.

Legal factors- It is the last factors of pestle analysis (Monaghan, 2018). Ocado should
study all legal aspects and regulations to enter in the new markets. Analysis facilitate
organisation to avoid serious troubles. There are some legal factors that influence the functioning
of Ocado such as employment proaction law, consumers protection law and intellectual property
regulations. Organisation should follow all legal regulations to take appropriate decisions.
Ocado should analyse economic, legal and political factors too closely because they all
affect the functioning and decision making process of respective organisation These factor are
related to the external environment that are out of control of organisation(Sykes, and Keighren,
2018). Organisation have to evaluate their effects and develop strategies accordingly.
These PESTLE analysis factors also facilitates the organisation to analyse all strengths,
weaknesses, opportunities and threats as well.
Impact of macro and micro environment on the Ocado business: There are various
macro as well as micro factors that affect the business functions as well as strategic decisions of
the respective organisation. Ocado conduct proper research to analyse all these factors closely
and prepare competitive strategies in order to take various competitive advantages in the
environment. These internal ans external factors brings various positive as well as negative
impacts on organisation that effect the profitability as well as productivity of organisation. Micro
environment is related to the business environment that is closely related to the business and
organisation can make strategies to control them in effective manner but the macro
environmental factors are out of control of organisation. So effective strategies and formulated
and continuous changes are add in these strategies in order to take competitive advantages.
Ocado also enhance the strengths and opportunities and minimise the threats as well as
weakness in order to sustain in the competitive environment.
CONCLUSION
As per the report, it can be concluded that organisation can improve their market
positioning by providing better quality products and services to their customers then their
competitors. Every organisation have some mission and visions that could be attain by applying
appropriate strategies. There are various external factors that affect functioning of organisation.
Management should analyse them and adopt suitable strategies to overcome their effects.

REFERENCES
Books and Journals
Agatz, N., Fan, Y. and Stam, D., 2020. The impact of green labels on time slot choice and
operational sustainability. Production and Operations Management.
Chruściel, M., 2017. Okudos-aplikacja webowa do przesyłania feedbacku z wykorzystaniem
grywalizacji. Projekt i implementacja.
Clarke, P., 2018. Ocado is transforming online grocery shopping with AI, but a skill challenge
lies ahead. Retrieved August. 12. p.2018.
Fraser, A., 2020. The digital revolution, data curation, and the new dynamics of food sovereignty
construction. The Journal of Peasant Studies. 47(1). pp.208-226.
Gilham, A., 2019. Stand and deliver. Property Journal. pp.40-42.
Monaghan, A., 2018. Ocado shares soar 45% as US deal makes it worth more then M&S. The
Guardian. 18.p.35.
Sykes, D. and Keighren, G., 2018, May. Industrial-scale environments with bounded uncertainty:
a productivity maximisation challenge. In 2018 IEEE/ACM 1st International Workshop
on Robotics Software Engineering (RoSE) (pp. 29-32). IEEE.
Vaughan, A., 2019. Is vertical farming the way to a greener life.
Yenework, N., 2018. BIOETHANOL PRODUCTION FROM MANGO ANO AVOCADO SEEDS
BY lJSJNC Sacchoromyces cerevisiae (Doctoral dissertation).