Ocado's long road to profitability

It's been a long road to profitability for Ocado, the online grocer that has struggled with finances, competition and other issues since its founding in 2000. Now the grocer has reported an annual profit for the first time and is building on changes in consumer behaviour that make online and mobile shopping more appealing and popular every day. And it's branching out with ventures like a deal with Marie Claire magazine to enter the upmarket beauty business.

Ocado's strategic objectives are to:

1. Increase the number of customers it serves
2. Increase the amount spent by each customer
3. "Make shopping easy" for customers
4. Continue improving efficiency
5. Commercialise intellectual property such as proprietary processes/technologies

Ocado courts digital-savvy customers with a strong social media presence on Facebook (274,000 likes), Twitter (38,000 followers), Pinterest (1,800 followers), Instagram (1,800 followers), YouTube and a corporate blog. It has both an iPhone app and an Adroid app for mobile-based customers. It has an app that allows customers to scan a UPC code on a grocery item at home and have it instantly added to the Ocado shopping list. Convenience for time-pressured customers is a major benefit that Ocado is banking on to keep it profitable in the intensely competitive world of grocery retailing.