Analysis of Ocado and Tesco for Potential Investment

1668 words (7 pages) Essay in Business

5/12/16 Business Reference this

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On this exclusive summary, I will write about the two companies that I am going to choose from to invest. In terms of the Ocado Company, it is interested in working on the field of grocery store. The main mission of Ocado is that it works to revolutionise the way people shop so it presents the best ways in the field of grocery and for providing with grocery for people. It provides people with innovative grocery products which are greener alternative to traditional grocery shopping. The main goals of Ocado are to seek to achieve some goals: like the great Value: it applies the best and smart thinking applying the best technologies to keep its efficient and perfect delivery model. As facing great competing from other companies in the same field of work, so Ocado does its best to cut down prices and guarantee the best prices and the best value of money. Great Service: Ocado does its best to deliver quality groceries in the best way and the best prices. Its work takes into consideration the customers and how to care with them in honesty. Ocado considers the opinions of the customers as they helps them us to share the company in its vision so the company presents different way of shopping. The company presents wonderful groceries for its customers. The company does its best to ensure everything that everything it sells is at the highest quality. The company takes into consideration the factor of environment so it keeps it. Consequently, the company adopts sustainable alternative to keep the environment. In terms of Tesco Company, it is a company located in UK. It has 923 stores and employs 240,000 people so it is one of the greatest companies all over the UK.


The description of the company: the company works in the field of grocery.

The business’s management

Ocado Company employs many directors who work in the company and they are experienced people who can do their best and who can play important role in developing the company. So, Ocado Company benefits from the experience of those experts. It applies many strategies of training for its managers and directors to be able to compete in the market and challenge all the conditions of the market.

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In terms of the market and customers, Ocado is interested in presenting its customers the best services and the best products in the field of grocery. In terms of marketing and sales, it uses the best technologies in presenting its products and to face the competition of the external markets. In terms of the business’s operations, it applies financial projections and strategic plans to continue in its business and to be able to compete in the market. The business strategy of the company is based on the application of the SWOT analysis that informs it about its internal and external environment.

(, accessed in 6/11/2010)

The company deals with grocery and adopted a strict business strategy based on presenting the best prices and the best services so it applies many successful strategies like innovation for achieving competition. It tries to have a competitive advantage to be able to compete in the markets of grocery. It tries to long term strategies to face the external environment through competition.

In terms of the future planning of the Ocado Company, it follows future planning based on understanding of the needs of the company. The Ocado company follows strategic Intents and think about the future to take the right strategic decisions which suit the conditions of the company and suits its external environment that it competes. It makes analysis for its business applying SWOT analysis which is concerned with the internal and external environment. In terms of the internal environment, it is interested in the weaknesses and strengths that it has. In terms of the external environment, it analyzes the opportunities and the threats. On following these strategies in its business, Ocado succeeds to achieve high profits at the end of the year according to its balance sheet that shows how it achieved great profits. Ocado also takes into consideration the risks that it faces in the future or what is called threats to be able to continue in its business. Its analysis is based on financial terms.

(“Ocado Factsheet”. Just-food, Aroq Ltd. 2008)

Operations of Ocado

Ocado runs its business warehouse in Hatfield. The most prominent feature that characterizes its operations is that its warehouses are filled by picking staff who are found at all sections of the business. Those staffs are using custom-built Mercedes-Benz to deliver the products of the company for the customers. The company uses a fleet of refrigerated delivery vans which are important to deliver the products. Ocado tries to compete in the markets so it presents new innovative methods for distributing its products like the satellite distribution warehouses. Consequently, the company use big Lorries to deliver its products all over the country for distant places.

(Davey, James (2008-11-07)

Ocado strategies conducive to competition in the market. Take innovative strategies as follows: In November 2008, and John Lewis Partnership transfer of interest in 29% of the Pension Fund for its employees. The resolution also adopted a five-year supply deal with a company at the same time replace the previous year rolling deal. One of the most innovative work from Ocado is that in the July 13, 2009, and this is the first application for the iPhone release. Through this strategy of large and modern, it allows users to do shopping without using a computer to facilitate the process of marketing to customers. Continued to increase and the company in its strategy for competitive advantage in the April 19, 2010, and the application of robots. This is the new use of the application by the robot has several features not available in iPhone app. This new technology allows the application with only the voice.


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Second : Tesco Company:

The strategy of the company:

Tesco in its working tries and does its best to develop its business and seek for consistent growth which is continuous for long run not just short run. In this way the company continues in its expansion for its operations and business in the UK to access the new markets. It follows rationale strategy which takes the customers as its core importance and focus. Its keep widening and extending its markets and business to enable the company to deliver its product to the customers at home as this is one of the main strategies of the companies. Tesco is famous for its financial services and non-food and telecoms. Its services are extended to a lot of new markets outside the UK like in Central Europe and Asia. It also managed to access the markets of the United States.

( in 5/11/2010)

Tesco followed the strategy of diversifying its business that led at last to its success in the recent years. In this way, Tesco created and developed new businesses and markets over the last 12 years because this is considered an important basis in its strategy. In this way, it managed to have a competitive advantage and achieves a lot of profits. Tesco continued to make good progress in its business and depended on five elements to achieve its goals. The five objectives of the strategy of Tesco are as follows: achieving success all over the world as an international retailer; increasing its business mainly in UK; achieving success in providing with non-food as in food products; also it seeks to develop its retailing services like delivering its services at home and delivering its products via many other modern ways like Tesco Personal Finance; taking the customers and the society as its core importance and the heart of its interest. Tesco Company over the past five years increased its UK supermarket base to include new countries and to present new products and services. This is of course to achieve competitive advantages. It presents different non-food business and personal finance. In addition, it now applies internet shopping which attract more customers. It expanded its business to internationalization its sales that led to the efficiency and profitability of the company. It seeks to achieve development on the long-term goal to be international retailer to achieve competitive advantage.

( accessed in 6/11/2010)

At last, after I provided with information about Ocado and Tesco companies, I see that both of the two companies are reliable ones and can be chosen to be invested in. according to the attachments that I attached, the two companies are of good financial state and reliable. In case of investing in any of the two companies, there will be great profits and revenues. The main purpose of Tesco Compny is to create value and satisfy its customers to earn their lifetime loyalty and their satisfaction. Tesco takes with the mottos that says treat people how we like to be treated. So, in this way, Tesco managed to gain the satisfaction of its customers that made it achieves more profits. However, I think that Tesco is more profitable and more able to achieve profits than Ocado.

References, accessed in 6/11/2010)

Davey, James (2008-11-07). “UPDATE 2-John Lewis moves Ocado stake to pension fund | Reuters”. Retrieved 2010-07-21.

“Ocado Factsheet”. Just-food, Aroq Ltd. 2008. Retrieved 2008-10-28.

 Ocado gets five-year John Lewis backing, / Evening Standard, 8 November 2008

 Waitrose and Ocado Announce New 10 Year Branding and Sourcing Deal accessed in 6/11/2010) in 5/11/2010)

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