Essay on the High Cost Charged in Delivering the Products to Customers

The Ocado model was brought to curbing the many online businesses which are were seen as the main competitors in the market. The model came mainly to assist in offering the best services to the customers as the competitors services were deemed to be inefficient as about the products delivery to the people. (Singh, 2006)The Tesco Company, for example, was seen to delivering the products at a very low cost to the final consumers of the goods. The customers though had to change their preference to the Ocado because they saw that, despite the services from Tesco being cheap, their quality was comprised and that was why they had to shift their attention to Ocado. (Chase, 2011)The Ocado model in a very short period had many clients all over the United Kingdom because it facilitated better services to the people. With time the owner of the Ocado online platform had increased its sales in respect to the other companies. The increased sales made the management to want to increase the cost of delivering the services to the people. They increased the cost which in the long run made the customers withdrawing from the platform thus reducing the profits of the company.

Remedy of the above Issue

The Ocado model had to foresee the implications of increasing the overall cost as compared to its competitors in the market. The best solution for the Ocado online was to offer quality services to the customers at the prevailing market price as to retain the dominance in the market. This could have instilled the customer friendly relationship with the Ocado platform owners, and in the long run, the company could increase its sales through their subscribers.

Delay in delivering the products

The Ocado with time had many customers who had come from other online shopping platforms including the Amazon and Tesco. The higher number of clients in the platform made the management delaying in providing the services to the customers on the scheduled time. This became a challenge to the management which seemed a big problem which needed urgency in resolving the issue. (Gopalkrishnan, 2009)The company had the resistant in coming up with a proper way of solving the problem of delay within the enterprise. The delay made a small number of customers going to other online shopping platforms where the service delivery was deemed suitable to them.

Remedy of the delay in delivering the products

The proper way in which this issue is to be solved in the management of Ocado coming up with a model of providing efficient service delivery to its clients on the right time. This could work by the directorate increasing the number of its labor force to curb the increasing number of customers within the company. This could ensure customer satisfaction as to regard to its clients thus resulting to increase in the sales volume to the company

References

Chase, Jp Morgan. The Online Platform Economy. 2011, https://www.jpmorganchase.com/corporate/institute/document/jpmc-institute-online-platform-econ-brief.pdf.

Gopalkrishnan, J. The WorldS Largest Online Marketplace. 2009, http://dspace.iimk.ac.in/bitstream/handle/2259/42/543-549.pdf?sequence=1.

Singh, Harkiranpal. 2006, Impohttps://www.van-haaften.nl/images/documents/pdf/The%20rtance%20of%20Customer%20Satisfaction%20in%20Relation%20to%20Customer%20Loyalty%20and%20Retention.pdf.