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An additional strength of ocado is its ability to

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an additional strength of Ocado is its ability to create value on the grocery after purchasing fromthe farmers.Weaknesses of OcadoThe weaknesses of the online retail shop place it in an inferior position compared to theothers.Ocado weaknesses include the inability to provide secure credit facilities. Their websiteis currently changing faster with the fast-changing technology as their shopping app still lacksseveral features, lacks patent protection, and purchases products from farmers in small quantities
BUSINESS STRATEGY ASSIGNMENT9(Gürel & Tat, 2017). These weaknesses were identified by getting feedback from the clientsshopping with Ocado. The next one is opportunities that may enable the company to exploit itsfull advantage. They will always affect Ocado positively.Opportunities for OcadoThe opportunities at the disposal of Ocado include; the increased purchasing power of thecustomers. This comes from the pandemic where families have to stay at home and thus consumemore groceries so will have to do online shopping to keep safe and healthy. Other opportunitiesinclude government subsidies to businesses during the pandemic which Ocado is likely to benefitfrom and consumer behavior change where customers need more grocery to keep healthy.Threats facing OcadoThreats are the external factors that trouble the existence of Ocado in the future. Theyinclude an increase in unemployment rates. This is impacted by the pandemic reducing some oftheir client’s purchasing power. New competitors entering the already crowded market are alsoanother threat though it can be tackled by continuous improvement. With increased stores to sellto, Ocado’s suppliers tend to gain some bargaining power over Ocado.Competitive AnalysisPorters Five ForcesThis analysis puts in to use five forces in the market to define a firm’s competitivestrategy. It analyses the parties that affect the competition and profitability levels in the industry.The first force is supplier power. Ocado requires raw materials such as grocery, labor, and othersupplies to be able to operate. This will imply that a relationship has to be made between thebuyer, Ocado, and suppliers. With strong bargaining power, suppliers will negatively impact theoperations of the firm.The buying power of Ocado and its customers also determines its
BUSINESS STRATEGY ASSIGNMENT10position in the market. Buyers gain power when there is a large scale to choose from; they canproduce the products independently, the product is not so essential to the buyer, and switchingcost is comparatively low (Kudelka, 2019). If Ocado decides to deal with few but influentialbuyers, they will determine the firm's position.Competitive Rivalry also influences the competitive position in the market of Ocado.

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Term
Fall
Professor
NoProfessor
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Ocado

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