MGD170004 E-Business: Organization & Strategy Of Ocado Assignment Sample

Introduction Of The E-Business: Organization & Strategy Of “Ocado”

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Ocado is the largest online grocery supermarket, which is specialized to deliver groceries to households. The company is based in the United Kingdom and got its existence in 2000. The organization was incorporated by Tim Steiner, Jason Gissing, and Jonathan Faiman.

Ocado is well-recognized to make its customers' lives easier by changing people’s way of purchasing groceries online. The company is continuously making efforts to make online groceries shopping becomes more convenient for its customers by creating and updating its technology (Mason, 2019).

The prime objectives of the company are – To provide its customers best shopping experience ever, to encourage and empower people to develop advanced e-commerce technology for online grocery shopping by suggesting market-leading solutions, and lead towards future growth and will able to become the world's largest leading online shopping retailer.

The organization has its farms and warehouses and acts as a separate legal entity. The other retailer collaborators of Ocado’s are Marks and Spencer. The company has specialized in advanced technology with automated warehouses and developed its software with the use of technology that manages the company's logistics and delivery operations itself.

The Ocado is famous for its technological innovation that is customer-centric services provided to its customers across the United Kingdom.

The reason for choosing Ocado as a project study

Ocado is a well-renowned online groceries-business and the company has a unique business model, which hugely relies upon its latest technology and automation website and mobile app-based services, having fully advanced logistics and robotics warehouses (Urquhart, et.al 2022).

The specific aspect of e-business that has undergone a transition

Ocado is a British-founded online grocery e-business, which delivers its products to its household customers at their doorsteps. The key specific aspects of Ocado, practices are completely automated robotic services in its business transition model, which is based on customer-centric (Singh and Söderlund, 2020). Over time, Ocado transformed its e-business from human workers to fully automate robotic, that pick and pack the customer's orders effectively and efficiently. This seamless business model reduces the overall cost of the company and saves a lot of time in picking and packing customers' orders.

In the last few decades, the company has invested a huge amount to develop its robotic business transition model, which increases the productivity of the company and speeds up its order-taking procedure (Munson, Tiropanis, and Lowe, 2017). This e-business transition model was designed and developed based on customers-centric needs and requirements to achieve timely pick orders and delivery processes at the ease of customers' convenience. Also, Ocado developed its own Ocado Solution division, which is shareable with other e-business retailers to improve their business performance and allow them to achieve their business-driven organizational goals. This seamless e-business model empowers the company’s efficiency, improves its effectiveness, and helps minimize errors. Ocado’s e-business model can handle its large volume of customer orders and deliver them at the same time.

The different aspects covered in the e-business course units

The following some other key aspects of Ocado that may consider in its e-business organizational model are as –

• E-commerce Platforms–For its seamless e-business operation, Ocado is utilize various e-commerce platforms to reach its large number of customers and effectively handle its customer's order procedure.
• Customer Relationship Management (CRM)– CRM plays an important role in the company's growth and helps in achieving its desired organizational goals.

The use of its fully automated robotics e-business organizational model in its grocery business helps to build a strong relationship with its customers for a foreseeable business aspect.

• CRM helps in collecting valuable customer data, helps in analyzing their behavior, and creates marketing messages accordingly.
• Supply Chain Management–This process allows the organization to balance effective coordination among its others activities and create a seamless production-to-product delivery process.
• Digital Marketing –It is the most essential component for the success of every e-business organization.

One focal area that you think will benefit most from in-depth analysis

Based on the above-mentioned key aspects, supply management is the focal area that will be benefited the most for the e-business of Ocado. Its complete automation Supply Chain Management encourages the organization to achieve its desired goals and objectives and confirms its future growth and sustainability in the market (Weber, 2021).

The focus area of e-business strategy

The focus areas of Ocado’se-business organization and strategic analysis based on –

Business Capabilities –Business Capabilities are the expressions of the Business capacity, resources, and expertise that the organization has to perform its organizational operations effectively and efficiently to accomplish its desired organizational goals and objectives.

The following points show the importance of knowledge about business capacities are -

1. It works as a growth indication for conducting business through its online mode
2. Helps in interacting with its valuable customers.
3. Maintain and manage its Supply Chain Management process
4. Build a strong relationship with its ideal customers.
5. To find innovative solutions to solve their customer's grievances.

The powerful marketing strategies to achieve its organizational goals

In the case of "Ocado", Business Capabilities gives emphasizes the optimum utilization of its fully automated seamless robotics operations in its organizational grocery-business model, which further helps to improve the efficiency of the supply chain management process (Jelassi, et.al 2020).

Business Integrations–It is an organizational strategic model, that helps the company to synchronize its Information Technology and business cultures and must be able to achieve its organizational goals effectively (Lancée, 2019).

With references to “Ocado”, It is another key focal area of the e-business Organization's strategic model. That helps organizations to integrate their online grocery business with other e-business operations. So that, Customers will able to get seamless Pick and pack orders at their ease of convenience.

It encourages Ocado, to reach a large number of its potential customers, and make strong strategies for the effective and efficient execution of the same.

Hence, above mentioned key aspects of the e-business strategic model conclude that both Business Capabilities and Business integrations are crucial aspects of the Ocado grocery e-business.

Business Capabilities help in conducting effective and efficient e-business organizational models and help in improving the marketing strategies to reach more potential customers by offering a seamless order delivery process (Bollano and Gutjahr, 2019).

Whereas, Business integration, helps to align its latest and advanced IT technologies with its organizational goals, and ensures a hassle-free pick-and-deliver order process, that will lead to the satisfying experiences of its valuable customers.

Thus, Ocado needs to make a balance between its organizational capabilities and with appropriate utilization of its IT services for the timely and effective accomplishment of pre-decided organizational goals and objectives with the optimum use of its organizational resources.

Research Question/ Research Problem

The following Research questions or Research problems would help to address the key areas of work improvement of Ocado’s e-business performances by conducting an in-depth analysis of a comprehensive study based on its Current e-business organizational strategic model (Kirby-Hawkins, et.al 2019).

Some of the Research Questions are as –

1. How SWOT Analysis helps organizations to improve their future performances?
2. How do Ocado's current Business Capabilities help to improve its Supply Chain Management System?
3. How Ocado’s Business Integration improves its productivity in terms of customer-driven based technology?
4. What marketing strategies will be adopted by Ocado to reach its large number of potential customers?
5. What organizational e-business model strategies will improve Ocado's Pick and Pack order producers?

Aim of these questions:

• The objective of this research problem is to get an in-depth comprehensive analysis of Ocado’s e-business transition model and to know the areas of future improvements, so the organizational goals would be achieved effectively and efficiently.

These Research questions will provide insight into solutions to the present situation of Ocado’s grocery e-business.

Importance of the Research Questions with References to “Ocado”

1. These Research questions play a significant role by addressing the key areas for future improvements of Ocado’s e-business model.
2. Helps in making strong marketing strategies to reach a larger number of potential customers.
3. Improves its Supply Chain Management System.
4. Considering its Business Capabilities and Integrations help in developing modern technology, this leads to the customer’s hassle-free Pick and Pack order process.
5. Build a more strong relationship with its ideal customers.
6. Able to capture a large stake in the market.
7. A company can make effective Marketing Strategies to accomplish its set organizational objectives.
8. To ensure its sustainability in the market in terms of foreseeable.

Analysis

The examination of the previously mentioned research investigation indicates that these areas of research are essential in augmenting the e-commerce performance of Ocado. The aforementioned concepts encompass SWOT analysis, supply chain management, business capabilities and integrations, marketing strategies, and organizational e-business model strategies (Saghiri, et.al 2017). The inquiries encompass a diverse array of e-commerce model topics about the enterprise. Moreover, the importance of these inquiries in enhancing Ocado's e-commerce transition framework cannot be overemphasized. The corporation may formulate tactics to optimize its strengths and opportunities, while mitigating its weaknesses and threats, through a comprehensive comprehension of its SWOT analysis. Subsequently, the entity can employ these strategies to ascertain its strengths, weaknesses, prospects, and threats. This has the potential to enhance the organization's performance in the future. An analysis of Ocado's current business capabilities and integrations can provide valuable insights into the development of customer-driven cutting-edge technology (Cao, 2021). Enhancing the productivity and efficiency of a business can be achieved through the optimization of the customer-driven pick-and-pack order process. Moreover, the formulation of effective marketing tactics that cater to a broader spectrum of prospective customers can facilitate Ocado in establishing stronger connections with its desired consumer base, augmenting its market dominance, and attaining its predetermined corporate objectives.

The factors driving the transition toward e-commerce

To undertake this task, it is crucial to understand the factors driving the transition towards e-commerce, including the imperative to augment operational efficiency, elevate customer satisfaction, and align with market demands (Lim, et.al 2018). By implementing this strategy, Ocado can ensure its market sustainability and attain its long-term goals. The expansion of e-commerce can be attributed to various factors such as advancements in technology, shifts in consumer preferences, and the imperative for businesses to sustain competitiveness in the contemporary digital landscape. The emergence of e-commerce can be largely attributed to advancements in technology. The advent of the internet, mobile devices, and cloud computing has facilitated businesses in reaching a wider global audience, providing online goods and services, and remotely managing their operations (Hübner, et.al 2016). The advancements in logistics and supply chain management technology have enabled firms to effectively and expeditiously transport products to their customers.

Alterations in consumer behaviour represent another significant aspect. The increasing popularity of online shopping among consumers can be attributed to its accessibility, convenience, and ability to facilitate easy pricing and product comparison. The proliferation of social media has enabled customers to access reviews, share their experiences, and receive recommendations from their peers, thereby exerting a greater impact on their purchasing choices.

Furthermore, the COVID-19 pandemic has accelerated the shift towards electronic commerce, as businesses and consumers have had to adapt to novel modes of work and consumption (Chao, et.al 2019). Due to the restrictions imposed by social distancing and lockdowns, online shopping has emerged as a more secure and convenient alternative for numerous consumers, leading to a surge in e-commerce transactions.

Finally, corporations are transitioning towards electronic commerce to maintain competitiveness in the contemporary digital age. Businesses that lack an e-commerce presence are at risk of losing customers to competitors who have adopted e-commerce, as there is a growing trend toward online purchasing. The implementation of an e-commerce strategy can enable businesses to enhance their market reach, reduce costs, and augment client engagement and allegiance.

At last, the range of factors, including advancements in technology, changes in consumer preferences, and the impact of the COVID-19 pandemic, and the need for businesses to maintain competitiveness, are contributing to a transition towards electronic commerce. It is projected that the shift towards e-commerce will persistently gain momentum in the forthcoming years, driven by the aforementioned factors (Pantano, et.al 2016).

Model or Framework

The models and frameworks mentioned above can be used to support the research questions for the Ocado case study (Chui, 2017). Ocado can pinpoint areas for development, create powerful plans, and enhance the performance of its entire e-business by utilizing these frameworks. The research questions for the Ocado case company can be supported by several models and frameworks:

1. SWOT analysis is a popular strategic planning tool that aids in identifying an organization's strengths, weaknesses, opportunities, and threats. It can be used to assess Ocado's e-business strategy, pinpoint the advantages and disadvantages of its existing tactics, and discover market opportunities and threats. Ocado can discover areas for improvement by evaluating its strengths and weaknesses, and it can create plans to effectively accomplish its goals by evaluating its opportunities and threats.

Strengths	Weaknesses
Ocado possesses a notable advantage in its sophisticated technological capacities, which have facilitated the creation of a streamlined electronic commerce infrastructure that affords patrons a convenient and intuitive shopping encounter. An additional advantage of the organization is its emphasis on sustainability and ecological accountability, resulting in the establishment of a favorable brand image and attraction to consumers who prioritize the environmental consequences of their acquisitions.	Being dependent on so few large suppliers exposes Ocado to supply chain risks including interruptions and price changes, which is a serious drawback. Additionally, the company may be unable to invest as much in other parts of the business due to the high expenses involved with creating and maintaining its infrastructure and e-commerce platform.
Opportunities	Threats
Ocado possesses several opportunities to expand its customer base and increase its market share (Han, et.al 2020). The business could potentially seek out joint venture opportunities with other establishments or consider expanding its geographic reach. Furthermore, Ocado has significant opportunities to increase its customer base and enhance revenue streams as a result of the increasing trend of e-commerce in the grocery industry and the escalating demand for doorstep delivery solutions.	The market share of Ocado is being significantly challenged by rival online grocery retailers such as Tesco and Amazon. Furthermore, alterations in consumer behavior, economic fluctuations, and regulatory factors may pose a threat to the firm's operations and financial performance. The COVID-19 pandemic has caused disruptions in the supply chain, which may pose a threat to Ocado's capacity to fulfill customer orders and maintain timely deliveries.

1. Porter's Value Chain framework categorizes a firm's business operations into two distinct categories: primary activities and support activities. In the context of business operations, primary activities pertain to the core processes that are directly responsible for the creation and provision of goods or services.

Conversely, support activities refer to the auxiliary processes that aid and facilitate the primary activities (Mahroof, 2019). The primary activities of a business include inbound logistics, operations, outbound logistics, marketing, sales, and customer service. In addition, there are support activities such as procurement, technology development, human resource management, and infrastructure. The Value Chain framework can be employed by Ocado to evaluate the contribution of each activity in its e-commerce model toward the entire process. This assessment aids Ocado in identifying potential opportunities for cost savings or value enhancement, thereby increasing the overall value proposition.

Inbound logistics encompasses the activities of receiving, storing, and distributing inputs to the production process. Ocado can utilize the Value Chain framework to improve its inbound logistics by analyzing its transportation and storage methods, delivery schedules, and supplier relationships (Bierganz, 2021). An operation, akin to production, pertains to the methodologies employed in the generation and provision of a product or service. By utilizing the Value Chain framework, Ocado can analyze its operations to identify opportunities for enhancing productivity, reducing costs, and elevating the caliber of its offerings.

The auxiliary tasks hold equal significance as they serve as the basis for the primary tasks. The quality of inputs is contingent upon the procurement activity, which subsequently affects the quality of the final product or service. Consequently, the Value Chain framework can be utilized by Ocado to evaluate its procurement process, identify prospects for enhancing the quality of its inputs, reduce costs, and cultivate more robust relationships with suppliers.

1. The Business Model or Business Model Canvas Canvas is a tool that aids in the development and definition of a company's business model. A corporation can use it to map out its value proposition, customer categories, important tasks, assets, and alliances (Singh, 2019). With the aid of this framework, Ocado may evaluate its current e-business strategy, pinpoint areas for development, and create a more effective and customer-focused business model.
2. Customer Relationship Management (CRM) is a tactic that businesses can use to better manage interactions with their clients to increase client retention and satisfaction (Kumar and Reinartz, 2018). Ocado may enhance customer service, boost client loyalty, and enhance overall e-business success by deploying a CRM system.
3. Model for Supply Chain Operations (SCOR): The SCOR model is a framework for managing and improving supply chain operations in businesses (Putro, et.al 2020). Using this approach, Ocado may identify areas in its supply chain that could use improvement, streamline its operations, and increase the effectiveness of its supply chain as a whole.

Conclusion and recommendation

The evaluation of Ocado's electronic commerce model culminates by underscoring the importance of technology, logistics, and automation in attaining commercial triumph. The implementation of fully automated robotic services by the business has resulted in reduced costs, increased efficiency, and enhanced delivery experience for its clients. The research underscores the significance of integrating business skills and strategies into Ocado's e-commerce approach, as this facilitates the improvement of marketing plans and the achievement of organizational goals.

It is recommended that Ocado continues to invest in cutting-edge technologies and automation to maintain its competitive edge in the industry. To cultivate more profound client connections, the enterprise must prioritize the improvement of its supply chain management protocol. To expand its global presence and broaden its customer base, it is recommended that Ocado prioritize IT integration and partnerships.

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