Amazon com s european distribution strategy case study

Wal-mart employs more than 2.

Amazon com s european distribution strategy case study

Supply Chain Case Study: Manufacturing systems and regulatory compliance are considered to be very complex, coupled with the Amazon com s european distribution strategy case study number of suppliers due to the high barriers to entry.

Amazon com s european distribution strategy case study

Moreover, the aircraft manufacturers have to do whatever it takes to win the order long before the commencement of production. However, the overall implementation of strategic sourcing is a bit different between the two companies. Then they decide to outsource many things such as the design, testing, and production of key components to key industrial partners and try to reduce the number of components that go to assembly.

The ultimate goal is to finish the final production process within 3 days. They want to utilize high capacity airplane to help airlines drive the operating cost down. They decide to selectively outsource the production of parts and keep the design and production of key components in-house. Fashion Supply Chain Supply Chain of the fashion industry involves a time-based competition.

Many customers have the unique product needs, but a competition is very fierce because of the low barriers to entry. Product design is also the central part of its strategy. They don't try to follow the high fashion designs but try to adopt the street trends which are easier to produce.

They don't invest in production facilities at all because they utilize a network of nearly suppliers located in Asia and Europe. Also, they don't own any stores because they choose to rent the space. In order to control its supply chain, they use a central warehouse in Germany to receive and ship products to local distribution centers in different countries.

At the end of the day, they can bring products to market within weeks. The reason is that they would like to create the worldwide brand awareness. For fast moving products, they use the production facilities in Europe.

Asian suppliers will perform the production of standardized products. In order to launch a new product within 15 days, Zara uses a small lot production. A new product will be tested in pilot stores. If product sales are good, a larger batch will be ordered.

Otherwise, remaining products will be removed from the shelves and sold as mark-down in other stores. This creates the perception among consumers that Zara's products are unique and you have to take it while stock lasts.

Vertical integration contributes to the success of Zara, they own the majority of its production facilities and stores this is the reason why Quick Response can be effectively implemented. Its automated distribution centers are strategically located in the center of populations so products are delivered to stores quickly.

The whole idea is to develop, market and deliver the product variety that most customers will find what they want. The first step towards mass customization is to strategically offer the product choices. Too few variations will disappoint a customer, but too many variations will simply postpone a buying decision.

After that, Adidas asks the same key suppliers to produce custom components in order to achieve the economy of scale. In order to compensate for a long waiting time, Adidas uses air freight or courier service.

The reason why they can do this is that customized products are sold directly to customers so they have the highest profit margin to compensate for the higher transportation cost. In the past, they supplied products to department stores. In order to create the best buying experience and control counterfeiting products, they establish their own stores in high-end shopping malls.

Having own stores means they can have a better understanding of buyer behavior so they can adapt most rapidly. Other than fashion items, they also sell food items and home products.'s European Distribution Strategy by Aditya Zutshi - Issuu

For example, they ask each supplier to develop samples for all ranges of fashion items so they can decide which items they will order from whom. The delay in the development of samples, testing, sample approval and final decision making causes a very long time-to-market. As a result, they're able to respond to the rapid change in the fashion industry.

However, they change some of the sourcing processes as below, - Close its production facilities in the UK and use suppliers in Asia or Eastern Europe - Instead of asking suppliers to produce the items exclusively for them, now they allow suppliers to produce items for other retailers too.

Then, suppliers don't have to provide a dedicated production facility which results in no investment cost. Using common raw materials also helps to reduce cost drastically - Assess the capability of each supplier and reduce the number of suppliers - Ask low-cost producers to make standard items and ask capable suppliers to make innovative products - Reduce the number of SKUs and pay much attention to best-selling items Supply chain strategy of the fashion retailing industry is summarized as below, 3.

The nature of this industry is a shorter product lifecycle, low-profit-margin, high competition and demand fluctuation.

The result is that the forecast accuracy is improved because a demand planner has an additional source of data to make a better decision.Cost of production and distribution 91 Disintermediation and reintermediation 92 Mini Case Study: 94 Mini Case Study: E-business strategy evaluation Mini Case Study: Zen Internet introduction to e-business.

In particular, the book offers readers an. Transcript of Amazon Case Study. Amazon European Distribution Network Establishing Amazon Europe began with the acquisition of Action and Implementation Strategy Middle-ground approach for implementing EDN, and maintaining three separate DCs.

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Oct 31,  · Strategy & Execution Case Study. David B. Yoffie;'s European Distribution Strategy. Add to cart. Describes how Amazon's distribution system evolved from the company's inception. Inc. continues to lead the online retail market as a result of integrating the issues identified in this Five Forces Analysis into the firm’s strategies.

Michael Porter developed the Five Forces Analysis model as a tool for the external analysis of firms.'s European Distribution Strategy. MENU.'s European Distribution Strategy case study. Janice H.

Hammond; degree of centralization appropriate for the European . Inc. Five Forces Analysis & Recommendations (Porter’s Model) - Panmore Institute