Case Study

Ocado versus tesco.com

7 pages
March 2010
Reference: IMD-6-0323

In 2009 several companies were competing in the UK for a share of the fast-growing online grocery market, using two different business approaches. Ocado, a purely online grocer operated out of a dedicated distribution center. The company was founded by three former investment bankers in early 2000. By 2009 Ocado had grown from its original three founders to over 3,000 employees and was just about to become profitable. It faced competition from Tesco.com, the biggest online grocer in the world. Tesco, the UK’s leading supermarket chain, had started an internet add-on to its regular business and used existing supermarkets to run its online operations.

Learning Objective

This case compares Ocado and Tesco.com business models from a consumer proposition, operational efficiency, profitability and sustainability point of view. Participants will be challenged to think about the challenges online grocers face to meet shoppers’ expectations, how operational choices impact the consumer proposition and what opportunities both companies have to further grow their business.

Keywords
Online Grocery Retailing, eCommerce, eBusiness, Supply Chain, Customer Orientation, Production Management, Operations Management, Operations
Settings
United Kingdom
Ocado, Information Technology, eCommerce, Consumer Services, Retail
2009
Type
Published Sources
Copyright
© 2010
Available Languages
English
Related material
Teaching note
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This case study is part of a series
  • Ocado versus tesco.com
  • Tesco and Ocado: Competing online models
  • Tesco and Ocado: Contrasting online grocery supply chain models
This case study is part of a series
  • Ocado versus tesco.com
  • Tesco and Ocado: Competing online models
  • Tesco and Ocado: Contrasting online grocery supply chain models
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Ocado versus tesco.com
By Nikos Tsikriktsis and Valerie Keller-Birrer
Case reference: IMD-6-0323 ©2010
Summary
In 2009 several companies were competing in the UK for a share of the fast-growing online grocery market, using two different business approaches. ...
Reference IMD-6-0323
Copyright ©2010
Copyright owner IMD Copyright
Organization Ocado
Industry Information Technology, eCommerce;Consumer Services, Retail
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications

Tesco and Ocado: Competing online models
By Ralf W. Seifert and Richard Markoff
Case reference: IMD-7-1975 ©2018
Summary
The online grocery market in the UK is one of the largest in the world. It has many players, but two of the most dynamic are Tesco and Ocado. The...
Reference IMD-7-1975
Copyright ©2018
Copyright owner IMD Copyright
Organization Ocado, Tesco
Industry Information Technology, eCommerce
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications

Tesco and Ocado: Contrasting online grocery supply chain models
By Ralf W. Seifert and Richard Markoff
Case reference: IMD-7-2553 ©2024
Summary
E-commerce as a share of retail continues to grow, accelerated by the pandemic. This is particularly true of the online grocery market. As one of t...
Reference IMD-7-2553
Copyright ©2024
Copyright owner IMD Copyright
Organization Ocado, Tesco
Industry Information Technology, eCommerce;Consumer Goods, Food and Beverage
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications