Amazon.com: Developing Same-Day Delivery Capabilities

            
 
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Case Details:

Case Code : OPER109
Case Length : 20 Pages
Period : 2009-2013
Organization : Amazon.com
Pub Date : 2013
Teaching Note :Not Available
Countries : US; Global
Industry : E-commerce

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

Competition to Intensify

With the introduction of online shopping of books (and later expanding the product range), Amazon.com had time and again changed the consumers' shopping habits. It also helped in the growth of global online retail. But earlier, Amazon was not able to deliver products to its customers immediately. Its competitors, the local brick and mortar stores, were at an advantage as they offered the service. However, in 2013, Amazon tried to reach its customers faster with the same-day delivery model. Industry experts opined that this development could have significant consequences for local brick and mortar stores. "Everybody in retail is terrified of Amazon," said research analyst Sucharita Mulpuru...

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Challenges on the Way

Amazon, unlike the other big companies like Google, Apple, Microsoft, etc., did not invent any new product or service, but grabbed power by systematically taking down an entire existing industry. It adopted a strategic approach to its business. Other companies made strategic moves occasionally and in isolation, but Amazon made its moves continuously, thinking multiple moves ahead on several fronts. Amazon neither created a new market like Apple nor competed with a single company, but it disrupted an entire industry. Amazon took on every part of the supply chain of the retail industry. E-commerce experts opined that the success of Amazon's same-day delivery experience in the future would hinge on its supply chain and fulfillment capabilities, and the continuation of its popular pricing strategies...

Looking Ahead

E-commerce and the consumer's desires had changed retail logistics, pushing down the delivery times from a few weeks to a day or even less, despite the fact that it was logistically complicated, unprofitable, and might not even be something many consumers looked for. However, the retail landscape was fast changing and was dominated by retailers who had accepted this new reality. Amazon and other Big Box retailers had started embracing the concept on their own, while small local retailers had started to hub together to fight the competition from their bigger counterparts. In the process, the courier and logistic companies were forming a part of the supply chain. Software and phone companies like Apple and Google also had specific roles to play in making this same-day delivery work. Retail companies developed exclusive applications for same-day delivery to make it easier for customers to purchase goods over the internet...

Exhibits

Exhibit I: Global E-Commerce Statistics
Exhibit II: The 2012 E-Commerce Index
Exhibit III: Amazon's Net Sales Segment-wise: North America and International (2008-2012)
Exhibit IV: List of Amazon's Websites
Exhibit V: Amazon's Consolidated Financial Data (2008-2012)
Exhibit VI: Amazon's Logo
Exhibit VII: Amazon's Acquisitions and Subsidiaries
Exhibit VIII: Amazon's Fulfillment Centers and Warehousing Network
Exhibit IX: Comparison of Same-day Delivery Promises


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