Amazon s european distribution strategy

Selling books online provides opportunities for the customers with a virtually limitless selection of books online with a glance and purchase. The online stores sell more books than any other local stores in no time. Amazon simply receives books from other sources, and ship them to the customers.

Amazon s european distribution strategy

How to Write a Summary of an Article? Amazon was founded in by Jeff Bezos. We will write a custom essay sample on Amazon. Their strategy was clear and easy: The wholesaler can fulfill the order quickly while Amazon employees pick and pack the order and ship it to the customer.

In Amazon grew really quickly by expansion of their distribution center, increasing number of titles and software development. In they were not longer a bookshop any more but expanded their product lines to music and videos.

However, they had to face tough competition, especially in Therefore they added new product lines and adapted its supply chain and distribution network. One big decision was also where they should locate their distribution center and how many they should build.

Amazons pick was a distribution center in Nevada, Kansas and Dallas. Soon also three more centers were added to serve the Midwest and the Southeast.

The next step was to choose which product types each of the distributions centers should carry. Distribution Network Strategy

After that they had to make a decision regarding the equipment in the new distribution centers and the technology used in their warehouses. Finally, to maintain high levels of quality and productivity in its distribution centers, Amazon developed key metrics to measure worker performance, including number of items picked per hour, free replacement rate, inventory accuracy, number of hours from order confirmation to shipment, and cost per unit shipped.

Performance information was routinely shared with individual workers. In the new Vice President of Operations Wilke started with teaching the staff to use a special method to reduce variations and defects.

This approach was later also used to improve the inventory record accuracy. Moreover, Wilke hired staff to stimulate holiday season conditions and he made arrangements for additional storage capacity. On top of that Wilke also focused on inventory optimization in the fulfillment network.

To have the products at the right time available will easily decrease Amazons inventory costs. There were several ideas to improve the inventory management: Amazon entered Europe through the two countries Germany and the UK.

To enter those markets Amazon acquired a leading online store in each country and the two sites were re- launched under the Amazon brand. In Amazon continued its expansion and entered France. They did not use the same strategy as in Germany and the UK, but build their site from scratch.

However, there were several challenges to enter the European market. They had to be aware of the cultural differences in Europe. First, Amazon adapted their website always a little bit to the needs of the country; secondly, they needed to address the selling regulations in each country.

Another very important point was the payment options. Because there were not many people in Europe using credit card they had to offer local paying possibilities. On top they recognized that it was impossible to replicate the US procurement strategy in Germany and France because of different supplier market factors.

To implement these strategic choices Amazon in Germany, France and the UK were managed as independent Amazon subsidiaries. Each country has its own organizations and was headed by a country manager and every country has its own warehouse.

Amazon also was evaluating opportunities to expand in other European countries.

Amazon s european distribution strategy

Amazon Europe needed to build up its infrastructure to support this ambitious vision. One option was to link all distributions centers. The other option was to keep the three distribution centers. There were also different options about the inventory in these three centers.

One could hold the inventory in all three centers or just in selected ones. Another question was regarding the location of the distribution centers. Solution First there was the option of only one distribution center in Europe.

This strategy certainly has advantages with regard to lower overhead costs, simplified internal communication, and increased bargaining power due to higher allocation chain management group 6 globalization & localization european distribution strategy jeff bezos offered by anita - ann - kirana - silvia - patrick.’S EUROPEAN DISTRIBUTION STRATEGY 1. What are Amazon’s primary sources of competitive advantage? Analyze how they built their competitive capabilities over the years. The following can be considered to be the primary sources of Amazon’s competitive advantage.

Cosco’s Security Concern, Simplifying Warehouse Tech, Amazon’s Three-Company Strategy - WSJ’s European Distribution Strategy 1 Introduction: Amazon was established in by. European Distribution Strategy Case Solution, European Distribution Strategy Case Analysis, European Distribution Strategy Case Study Solution, Introduction, Inc.

or (, came into existence on May 28, , serves the consumers through its tremendous retail websites and moreove. What distribution network configuration should Amazon Europe adopt?

Amazon s european distribution strategy

Ans: Current strategy: At the moment. The British installation could encompass all of Great Britain and Ireland. etc. Finland. thus enveloping the entire European Union.

Mitigation of the Bullwhip effect because of an increase in information sharing. Requires new investment. Amazon Europe should adopt having DCs in each of the three current countries in conjunction with an integrated inventory management system and a common integrated IT interface.

• Lower transportation costs as each facility can cater to the concerned area.

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