Ocado SWOT and PESTLE Analysis

Strength

1. Strong technology platform and proprietary software: Ocado has unique end-to-end operating solution with its own proprietary technology, Ocado Smart Platform which supports its online retail operations as well as of its partners such as Morrisons. The platform provides customizable solutions depending on the retailer-partner’s specific requirements. Other features such as general merchandise, loyalty schemes or grocery range extensions can also be integrated into the platform. Online is forecast to be the fastest growing channel in UK grocery segment and as the retail business grows the platform can be scaled whilst achieving cost efficiencies. Ocado is well positioned to ride the growth and the company is implementing continuous incremental innovations on the Ocado Smart Platform in a “live retail” environment to further drive efficiencies for its customers and partners. 2. Ocado’s expansion of own brand range: Over the last few years, Ocado has majorly focused on developing and expanding its own in-house brand and private labels to strengthen its brand presence. Further according to the Rabobank, which is a food and agro-focused organization, frozen food will be the next growth driver in online grocery. In line with trend, Ocado also launched its own frozen food range in 2015. In 2021, Ocado successfully launched operations for its partners Kroger and new CFCs for ORL and ICA while scaling the Ocado Smart platform globally at a rapid rate. The International Solutions segment started to recognize material revenues for the first time; £66.6 million, up 301 percent from the previous year, as the global roll-out of OSP picked up. The fee revenue for UK Solutions and Logistics increased by 28% to £149.7 million as we continued to assist our UK partners in realizing their aspirations for accelerated growth. The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

1. Big data, artificial intelligence and automation helping retailers to increase efficiency: Retailers are aware that they can only meet rising consumer expectations and experience profitable growth in online grocery through technological innovation. Big data analytics and artificial intelligence (AI) is a major way by which retailers can improve both operational efficiency as well as customer experience. In the retail industry, data is something that is generated in enormous volumes through sources like inventory data and website transaction logs. Ocado is using big data and artificial intelligence to generate customer behavior on its web-platform. The company is also leveraging robotics in its next-gen wireless warehouse automation platform. The same has been implemented in two warehouse sites in Andover and East London. OSP, which operates at the nexus of six disruptive technologies—AI, robotics, digital twins, cloud, big data, and IoT—enables unparalleled efficiencies in order fulfilment and delivery. At 200+ UPH, it takes just 15 labour minutes to complete an order for 50 items, and each van makes an average of 177 deliveries per week on the road. In order to increase efficiency for partners, they are quickly developing a robotic pick and pack system. The remaining section under "Technological" is available only in the 'Complete Report' on purchase.

Legal

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Environmental

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