Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Version: 22.02.2010
Length: 17 pages
Data source: Published sources
Abstract
This is part of a case series. In 2009 several companies were competing in the UK for a share of the fast-growing on-line grocery market, using two different business approaches. Ocado, a purely on-line grocer operated out of a dedicated distribution centre. 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 on-line 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 on-line operations.
About
Abstract
This is part of a case series. In 2009 several companies were competing in the UK for a share of the fast-growing on-line grocery market, using two different business approaches. Ocado, a purely on-line grocer operated out of a dedicated distribution centre. 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 on-line 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 on-line operations.