Subject is Marketing: how do Amazon.com’s logistics and supply chain management
ID: 450025 • Letter: S
Question
Subject is Marketing:
how do Amazon.com’s logistics and supply chain management activities help the company create value for its customers?
We can all agree that each of the four Ps are critical marketing considerations. That said, which one (product, price, promotion, or placement) is the most important and why? Make a strong case for your decision.
We can all agree that each of the four Ps are critical marketing considerations. That said, which one (product, price, promotion, or placement) is the most important and why? Make a strong case for your decision.
Explanation / Answer
Amazon have really emerged as true retail leader in US and it is now emerging big player in asian countries as well.
The true reason of its success in supply chain management lies in increasing accessibility for the company to store their products with increasing number of warehouses at remote places. As it grew the company added warehouses allowing it to react more quickly to customer orders. Increasing the warehouses near customers will reduce the response time. And now in India the deliverytime is aggressively reduced by Amazon to next day delivery campaigns, same day delivery campaign, which this market never witnessed in the past.
The only competitive difference was lying between retail stores and online stores was delivery time, which Amazon significantly reduced and gained competitive advantage. Also the new booming campaign of easy returns helps amazon to gain customer trust. This is how they are building value for customers and cruizing in competition. Amazon has around 50 warehouses, 20 in US and rest in Canada, France, Germany, Italy, China and Japan.
Amazon aims to be able to deliver most items the day they are ordered, so it can defeat its rivals ebay and walmart in terms of delivery time atleast.