Forget vouchers or stamps - give your customers some shares…
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Well, perhaps not “give” your customers shares; but possibly offer them the chance to invest in their favourite online grocery provider. That’s what upmarket etailer Ocado is hoping to do. Press reports today highlight Ocado’s plans to offer their customers the chance to participate in a possible stock market flotation of the business.
Should the customers invest in Ocado if the opportunity arises? The business has never made a profit, yet it has successfully raised many millions of investment from high net-worth individuals, corporates and venture capitalists in recent years as it has built its business model. The talk is of a business worth £1 billion at flotation - even though it is not (yet) profitable. Students might debate why such a business might be so valuable - the answer lies in branding, market positioning and competitive advantage.
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