Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Version: 26.01.2024
Length: 9 pages
Data source: Published sources
Abstract
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 the largest online grocery markets in the world, the UK has many players, but two of the most dynamic are the market leader - Tesco - and Ocado. These two companies have taken markedly different approaches to executing and fulfilling online grocery orders from customers. Tesco has an extensive network of stores and primarily uses them as picking locations to prepare and ship customer orders. Ocado has no retail stores and uses highly automated distribution centers to prepare and ship customer orders. This case describes the UK online grocery market, the two companies and invites students to consider the different approaches: In what ways do they offer advantages to the company and customer and, ultimately, which one is better suited to the UK online grocery market?
Time period
The events covered by this case took place in 2023.Geographical setting
Region:
Europe
Country:
United Kingdom
Featured companies
Ocado
Employees:
10000+
Turnover:
GBP 2,514 million
Industry:
Information technology;e-Commerce;Consumer goods;Food and beverage
Tesco
Employees:
10000+
Turnover:
GBP 65,762 million
Industry:
Information technology;e-Commerce;Consumer goods;Food and beverage
Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Version: 26.01.2024
Length: 10 pages
Data source: Published sources
Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Format:
.pptx
Data source: Published sources
About
Abstract
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 the largest online grocery markets in the world, the UK has many players, but two of the most dynamic are the market leader - Tesco - and Ocado. These two companies have taken markedly different approaches to executing and fulfilling online grocery orders from customers. Tesco has an extensive network of stores and primarily uses them as picking locations to prepare and ship customer orders. Ocado has no retail stores and uses highly automated distribution centers to prepare and ship customer orders. This case describes the UK online grocery market, the two companies and invites students to consider the different approaches: In what ways do they offer advantages to the company and customer and, ultimately, which one is better suited to the UK online grocery market?
Settings
Time period
The events covered by this case took place in 2023.Geographical setting
Region:
Europe
Country:
United Kingdom
Featured companies
Ocado
Employees:
10000+
Turnover:
GBP 2,514 million
Industry:
Information technology;e-Commerce;Consumer goods;Food and beverage
Tesco
Employees:
10000+
Turnover:
GBP 65,762 million
Industry:
Information technology;e-Commerce;Consumer goods;Food and beverage
Related
Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Version: 26.01.2024
Length: 10 pages
Data source: Published sources
Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Format:
.pptx
Data source: Published sources