Ocado vs. Tesco Report.docx - Case Report Ocado vs Tesco...

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Case Report: Ocado vs. Tesco The Issue: Why are we here The United Kingdom’s online retailing grocery market had become a vital avenue during 2009. Several businesses were competing to dominate the online category even though it was a reasonably small part of the grocery market. Within this concerted race to success Tesco and Ocado stood out by demonstrating growth in this fairly new category. Tesco has physical stores customers can shop in and launched & ran parallel online grocery shopping option. In the meanwhile, Ocado is a much smaller company in comparison to Tesco, but Ocado only offers online grocery shopping and has shown extensive growth by going from three founders to well over 3,000 employees. In aligning both companies we will be able to observe company best suited for the future, most adequate for investor recommendation, and course of action plan for future endeavors of both firms. What are the important Questions? Which firm do you believe is positioned best for the future? Which firm would you suggest to investors? Why? What do you believe to the best course of action for the future of both of these firms? An analysis of these questions and the anticipated results follows. Option #1: Ocado a. Description: Ocado based out Hatfield Hertfordshire, England is an Internet retailer specializing in groceries. The company was founded in January 2002 by Jonathan Faiman, Jason Gissing and Tim Steiner, former Goldman Sachs merchant bankers, and since then grown it to over 3000 employees. Ocado has gained abundant customer service awards in its category but has yet to turn a profit. The online store sells everything from groceries, flowers, magazine and even toys. Ocado’s operations run on a warehouse model and it is

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