Amazon.com: Developing Same-Day Delivery Capabilities

            
 
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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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Case Details:

Price:

Case Code : OPER109 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

E-commerce/ Supply Chain Management/ Logistics

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

Abstract:

This case discusses Amazon.com's business model, supply chain, and its order-delivery processes. In 2005, Amazon.com introduced a premium membership scheme called ‘Amazon Prime'. It was a free two-day shipping and discounted one-day shipping rates service offered to the members in the US on eligible purchases for a flat annual fee of $79. Over the years, the service was extended to other countries like Japan, the UK, Germany, France, and Canada. In 2009, Amazon introduced same-day delivery in 10 big cities in the US, which were close to Amazon warehouses. However, in August 2012, Amazon.com introduced same-day delivery as an option and made next-day delivery a standard service to all its customers.

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

However, analysts were skeptical about the success of the model due to the impracticality of the model and logistical hurdles that the company could face. Apart from these problems, the delivery model also faced competition from other big and small players. This case is meant for MBA students as a part of the E-commerce/ Operations Management/ Supply Chain Management courses. It can also be used in a core strategy curriculum.

Issues:

Understand the issues and challenges in the logistics and supply chain management of retail and e-commerce businesses.
Analyze the reasons for Amazon's developing same-day delivery capabilities.
Understand the concept of e-commerce and its impact on traditional retail.
Understand the impact of Amazon's same day delivery on the industry and the increased competition among online and physical stores.

Contents:

  Page No.
Introduction 1
Global E-Commerce Industry 2
Amazon.com 2
Amazon's Business Model and Supply Chain 4
Amazon's Same-Day Delivery 6
Competitors too Join the Fray 7
Competition to Intensify 9
Challenges on the Way 10
Looking Ahead 12
Exhibit 13

Keywords:

E-commerce; Supply chain; Supply chain management; Logistics; Same-Day delivery model; business model; Order-Delivery Process; Fulfillment capabilities; Same-Day delivery capabilities; Fulfillment centers; Warehousing network; Six Sigma, Lean Manufacturing, Total Quality Management; Amazon

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