Reinventing Ecommerce Harvard Case Solution & Analysis

Reinventing Ecommerce Case Study Solution

Alternative Solutions: Solution/Opportunities:

Alternative 1: Introducing Drone

Pros:

  • An unmanned automation drone would be better deal as it will be more efficient and more cost saving as compared to traditional shipment processes.
  • It’s a more efficient method of delivery as low amount of fuel will be used and packages will also be delivered quickly.
  • As they focus on fully automated drones therefore the labor cost will be negligible.
  • There will be no freight charges or other expenses which usually occur in the traditional delivery methods.
  • Time will be saved which will eventually lead to more generation of revenues.
  • The use resources will be minimum as compared to the shipping.
  • Aired drones can create a lot of opportunities for Amazon by giving it the status of the first company to launch a first drone delivery service.
  • As customers are trusting Amazon more so they could new development a chance and may pay for the delivery through drones. (O'Brien, 2017)

 

Cons:

  • Large amount of investment will be needed in order to make this fully automation drone to work and deliver the package.
  • Privacy concerns will be high as people would be more conscious that whether the product reaches them or not.
  • There will be high risk of safety of the products that are ordered by the customers.
  • As the case study show what competitors are doing and working on AVs from the national highway safety administration if this drone doesn’t work that will be huge amount of loss for them if what competitors are doing becomes more of customer’s favorites.
  • Government may become a problem as there will be taxes or freight charges if drone are used, and going through that amount of required process for the approval.
  • Not big and heavy products will be able to deliver through drone and, traditional ones will be needed.
  • As it’s been said that AVs technology will need information and how will it be researched and collected is still in process and that needed a lot of thinking.
  • May have to compromise on the quality of the products inside the package for the delivery. (Spencer, 2018)

Alternative 2: Not Introducing Drones

Pros:

  • The trust that people have on the service delivered by Amazon will remain intact, if abide to the traditional trucking services.
  • Amazon having the guarantee that nothing will happen to products when it reaches the customer.
  • Amazon prime has already proved to be more successful that is delivery in two days, for which customers are already willing to pay more to benefit from Prime more.
  • Not huge amount of data was needed to ship the products that were ordered, as these were required in AV technology.
  • As the market research suggested only 12% of people were okay having any AV technology deliver their product as compared to the traditional means of shipping or delivery which was supported by 88% of people.
  • Selling through traditional shipment process didn’t required to go through that difficult form of process of government.

Cons:

  • Not that of an efficient delivery service will be seen, and as Amazon wanting to make fast deliveries since so long it will affect their image.
  • Threats of competitions being more efficient then amazon. Other competitors may take the customer’s favorite’s status from Amazon being the fastest delivery available.
  • May be left behind because of the competitors becoming more efficient.

Decision and Support:

I think by looking at all the factors alternative 1 would be more viable although more cost will occur and may need to increase the amount that was paid for the lobbying to get government in hand again, but through this Amazon will focus on more of its aim to make the delivery fast and if they decide to buy them from the company which specializes in this and buying drones in bulk might give some kind of discount. But if Amazon decides to manufacture, which will be more already amazon has to spend more money on the overall drone testing, its safety and customer data and market research. So introducing drone delivery services will be the most suitable option for such case study.

Action Plan:

As automation have brought such drastic changes in the overall world, it is highly regarded that Drones will bring heavy changes as how the normal operations in Amazon work, cause fast paced delivery system will open doors of opportunities such as giving customer a chance of having everything at their door step within thirty minutes of time. Giving them a chance to target their other activities to carry out other operation more effectively and efficiently.

By introducing drone, the efficiency of small product that customers need as soon as possible will be made achievable. The fast paced drones will help Amazon by preserving the resources and utilizing them for other areas of concerns. As Amazon is more trusted means of delivery by customers, there is a high probability of them not just liking them but by promoting them letting others know about it. The more loyal customers more chances of having the new product launch more useable.

As it was said at the end of case study and it will take one more year of information search and bringing the AVs technology, unmanned vehicle drones to be operated and utilized for overall operations of carrying out the delivery of packages of not more than 5 pounds which amount to almost 86% of the Amazon packages, products deliveries with the radius of 10 miles.

As this case study suggest that there are certain questions that still unknown by the Jeff Bezos. This states that no matter how clear the ideas are there are questions and risks that one still unknown and cannot be answered that easily. From gaining customers trust to the getting the permission by the government to waiting the approval from Federal Aviation Admiration (FAA) to provide privacy to its public and that these drones and AVs technology will not be compromised. Overall this technology is highly innovative and will change the way how Amazon used to deliver its products and packages online............

 

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