...transport, logistics and physical distribution, regarding both business to business and business to consumer commerce. The possible implications of e-commerce are analysed in the broader context of structural change, going beyond narrow assessments that overstate the significance of e-commerce and its potential to make freight traffic more efficient. The main argument of the paper is threefold: first, most recent analyses of freight transport and logistics implications of e-commerce are overstating the current relevance of e-commerce applications on the one hand, and neglecting the influence of the underlying structural change in the entire logistics system on the other. Second, conventional analyses of certain efficiency benefits of ecommerce are probably too optimistic, whereas its negative effects are underestimated at the same time. E-commerce is likely to support longer transport distances and often higher delivery frequencies, increasing demand for land, due to the establishment of new transhipment points (distribution centres) and, to a certain extent, a shift towards truck and air freight transport modes. Third, e-commerce and IT are interrelated components of the structural change in distribution. They affect the environment in terms of vehicle miles, related emissions and energy consumption, by speeding up the time and increasing the geographic area of transport operations. Whether e-commerce contributes to a more efficient distribution system or not very much depends...
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...Distribution channel is the flow system of which services and goods move from the vendor to the consumer. As we have learned in class, the channel can be direct, directly from the vendor to the consumer, or there can be intermediaries and several connections, such as wholesaler, distributor, agents, and retailers. The distribution channel is also referred to as the marketing channel. Michael Porter defines competitive advantage as the ability of one firm to outperform its rivals by establishing a difference and preserving it. The results of having an advantage over other firms in the market are more customers which lead to higher sales and more profits. Product offered, firm’s cost structure, consumer support and distribution network are examples of ways in gaining competitive advantage in the market. Rosenbloom define sustainable competitive advantage as “a competitive edge that cannot be quickly or easily copied by competitors. In recent years, it has become far more difficult for companies to attain such an advantage through product, price, and promotion strategies” (Rosenbloom, 2004). Another way for firms to gain competitive advantage is through their distribution channel by using Porter’s Five Forces (rivalry, threat of substitutes, buyer power, supplier power, and threat of new entrants and entry barriers). We will be focusing on strategic alliance and direct channel. Strategic alliance is defined as the relationship created between firms where their knowledge...
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...com | 55 | Shopclues.com | 44 | Myntra.com | 299 | Levels of Channels The major functions of channels for amazon includes: 1. Order Processing 2. Warehousing 3. Inventory Management 4. Transportation Amazon is known for its strategically located distribution facilities. Amazon Seller Services India Pvt Ltd have five Fulfillment Centres (FCs) in Delhi, Chennai, Jaipur, Ahmedabad and Tauru (outskirts of Gurgaon). All these FCs have been strategically placed to cater to high density areas (Metros) and also they are generally placed on the outskirts of the city, thereby reducing on the rental costs. Distribution channels for amazon: Online channel: It has a significant cost benefit over other traditional distribution channels. The online channel for amazon includes: * E-Books-Kindle reader: Downloadable books for online reading. * AmazonMP3 & Cloud Player * Instant Video: Allows for Buffering and downloading of music from the records of EMI, Warnerbros, Sony & Universal * Mac Dowload store: Provides software and apps for apple products * AppStore for Android * Amazon Cloud drive: Provides cloud services for small businesses * Amazon Game Studios & Software: Various games and softwares can be downloaded through Amazon Game Studios. Physical channel: Amazon has centralized distribution centres that are strategically placed. Amazon has almost doubled its total storage capacity to over half million square...
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...Project………………………………………………………..... 3 Who is Amazon……………………………………………………………………… 3 Why did I choose Amazon…………………………………………………………... 3 Amazon's Channel Design including its use of the Web………………………………... 3-4 Web Beginnings……………………………………………………………………... 4 Today………………………………………………………………………………… 4 Amazon’s future including key strengths and weaknesses……………………………… 4 Amazon’s Vision and the changing Web…………………………………………… 4-5 Key Strengths and Weaknesses……………………………………………………… 5-6 Opportunity and Threats…………………………………………………………….. 6 SWOT Analysis…………….…………………………………………………………… 7-9 Amazon’s Ethical Challenges…………………………………………………………… 9 Changing Web Ethics……………………………………………………………….. 9 Ethical challenges for Amazon……………………………………………………… 9 Strategy Recommendations for Amazon………………………………………………... 9-10 References……………………………………………………………………………….. 11 Introduction Amazon is one on the world’s undisputed leaders in web-based commerce. Although they were not the first company to capitalize on using the World Wide Web for commerce, they certainly raised it to an art form. When you think of shopping on the web, you think of Amazon. Amazon perfected this channel and continues to innovate as the technology and access to web grows. Amazon has zero brick and mortar retail locations, it’s business was founded on the web and this basic model is the delivery mechanism for it products, content and services from manufacturers, wholesalers, and publishers from around the world. Amazon has over 40 distribution centers around the...
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...While physical distribution is an asset for Amazon, it is also trying to be a dominant player in the digital distribution of content. Do you think this is a good strategy? Why? Why not? Nowadays we can see a fast development of distribution channels and intake of digital content. We have entered a new period of IT technologies where digital information is playing one of the leading roles together with internet, computer technologies, mobile telephony and evolution of mobile devices. The demand of entertainment and informational content (electronic books, social networks, music, games and video media) spreads through the countries together with mobile devices and PC distribution and becomes more and more vital. You can daily feel its influence on yourself as well. Being a modern person you want to be always available and “keep one's eye on the ball”. Internet became a “must” access resource towards information. We use our mobile phone not only for the voice communication but also as an access to different digital contents (music, video, e-books just to read and for studies, etc.) and social networks (to connect friends and colleagues). To have a better understanding let’s see a J’son & Partners Consulting brief overview on digital media content market, sales via internet and other remote communication channels (distribution via physical devices have not been considered). According to J’son & Partners Consulting research key global digital content market...
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...Distribution Channels Most distribution channels or app stores charge an annual fee to register for publishing the app in the store and there are no other costs associated if the app will be sold for free. The iOS Developer Program costs $99/ year plus yield 30% of each sale of your app to Apple and provides a complete and integrated process for distributing iOS apps in the App Store. The Android market through Google Play charges $25 a year to register as a developer (onetime payment) plus yield 30% of each sale of the app in store. Both these markets allow you to publish an unlimited number of apps and do not charge on a per app basis. The Amazon and Black berry markets do not charge a fee to publish apps in the app store but they do require registration and may charge an annual fee after the first year. Recent data has shown the top two markets for revenue and number of apps published are the iOS and Android markets. The trends show they will continue to be the top distribution channels for app downloads and it is recommended to utilize these markets. There are a number of ways developers can distribute their mobile phone applications including: * App Stores – device app stores and independent app stores are available for distribution. Independent app stores like GetJar are available and deliver a different option in supporting multiple platforms like iOS, Android and Blackberry. * Pre- loaded app – Fees are very expensive but it is very effective channel. This...
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...| AMAZON – ONLINE SALESMGMT 5010 | PROF. JAISON MATHEWS | 3/10/15 | SUNDARESH NATARAJAN 4234175 | | | AMAZON – ONLINE SALESMGMT 5010 | PROF. JAISON MATHEWS | 3/10/15 | SUNDARESH NATARAJAN 4234175 | | 1. Why is Amazon building more warehouses as it grows? How many warehouses should it have and where should they be located? Amazon, started as an online bookstore, has evolved to an online retailer selling anything possible under the sun. The business model that Amazon operates is pretty easy to replicate and hence the differentiating factors would decide the winner. Factors like price, delivery time and ease of usage of the online portal. For a company that has is completely online, Amazon has invested more than $14 billion since 2010 (Bloomberg, 2013) in brick and mortar warehouses. Amazon is expanding its warehouses (called as fulfillment centres) in order to reduce the response time. Hence more warehouses means better response times (same day delivery being the new benchmark) which in turn leads to more new customers and retaining old customers and hence increased profit. Location of warehouses is based on proximity to major target markets, delivery time and cost of setting up warehouses (based on real estate). For example, Amazon need not have a warehouse in New York city since that would mean unimaginable expenses. Instead these customers can be serviced from New Jersey warehouses. Number of fulfillment centres...
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...Strategic Management: Principles and Practice Case Study B: Amazon 1) Jeff Bezos founded Amazon in 1995. By 2008, Amazon had truly become a global company with a market capitalization of some US$29.4 billion and 20,700 employees. Its success has been based on a critical success factor consisting of constant technological innovation. This strong sustainable competitive advantage has been placed side by side with a continual effort in catering for the needs of Amazon’s different customer groups. Barriers to Entry If we analyze the online retailing industry according to Porter’s five forces framework, we can state that the industry presents high barriers of entry in terms of technological knowledge/experience and distribution channels. More specifically, the expensive start-up (or switching) and maintenance costs of equipment and expertise often deter new entrants in e-retail business. In terms of government regulation, the online retailing industry may face some issues with national authority restrictions, as is the case of China with the social networking site Facebook, as well as compliance issues on data protection and privacy. On the other hand, the industry presents low barriers in terms of the ease with which an online retailing store can differentiate their products and services offered to a new market. Nonetheless, if the start-up company lacks the technical capabilities and proprietary resources in establishing itself, penetration in such a market is more difficult than...
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...Distribution Strategy for Production & Sales In order to effectively market and sell a new product, a distribution strategy must be defined. Distribution for production and sales can occur in many different ways and it is important that many avenues be explored. This is because it is always beneficial to produce through multiple channels in order to maximize your efficiency. One way that the product can be distributed for sale is through a sales team. There could be a dedicated sales force that visits different businesses and attempts to sell the product directly to them. Another way that the product could be distributed is through a wholesaler or a distributor. This would be an efficient way to quickly move product on the market and allows for a higher volume to be produced and moved than other methods of distribution. A third possible way to distribute the product would be through the company’s own e-commerce site. The consumer can come directly to their site and be able to order the product straight from the manufacturer. This way could lead to less expensive products as there is no middle man in this particular process, lessening the cost to the consumer in the process. A very obvious choice in the distribution and sales of the product is Amazon. This should be one of the first places that a new product should be marketed as Amazon has one of the most popular e-commerce sites and is constantly expanding. This provides an excellent opportunity for the distribution strategy...
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...includes e-commerce but also covers internal processes such as production, inventory management, product development, risk management, finance, knowledge management and human resources.” (Bartels, 2000) Electronic-network retailing, or e-tailing, is how a firm retails or sells its products or services via the internet. It is a subset of e-commerce and includes many of the multifaceted layers of e-business. This essay will give an overview on the current state of e-tailing. It will examine the critical success factors, advantages and drawbacks, size, growth trends, and areas of consumer products that do well and not so well. Introduction In order to fully grasp e-tailing it is important to understand the many channels of distribution of e-commerce. Again, a “marketing channel…is a group of organizations that moves products from their producer to customers... Organizations that bridge the gap between a product’s manufacturer and the ultimate consumer are called middlemen, or...
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...Sharhonda Dillard January 29 ,2012 MKT 506 Dr. C Assignment 2 Amazon 1 Amazon.com ABSTRACT What is Amazon.com, Inc.? Amazon is an American-based multinational electronic commerce company, which is the largest online retailer, with nearly three times the Internet sales revenue of the runner up, Staples, Inc., as of January 2010. I f I to say what I think of Amazon. I would say the following: * An online mall where it enables vendors to sell within the Amazon experience * A retailer where they sell goods they stock and ship * A brand in itself representing the bench mark for online shopping (from product research to purchase) * A destination site (start all your shopping here) * A technology provider of cloud computing? * A technology provider that can run your online store for you Jeff Bezos founded Amazon.com, Inc. in 1994 and launched it online in 1995 as Cadabra.com. It started as an online bookstore, but soon diversified, selling DVDs, CD, MP3 downloads, computer software, video games, electronics, apparel, furniture, food, and toys. Amazon has established separate websites in Canada, the United Kingdom, Germany, France, Japan, and China. It also provides international shipping to certain countries for some of its products. A 2009 survey found that Amazon was the UK's favorite music and video retailer, and third overall retailer.(oppapers.com) Amazon company began as an online bookstore; while the largest brick-and-mortar bookstores...
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...Case Report - Amazon CONTENT 1. Amazon in Brief 2. Amazon’s Five Forces 2.1 Threat of New Entrants 2.2 Bargaining Power of Buyers 2.3 Rivalry Among Existing Competitors 2.4 Bargaining Power of Suppliers 2.5 Threat of Substitute Products or Services 3. Amazon’s Value Chain 4. Conclusion 5. References Case Report - Amazon 1. AMAZON IN BRIEF Amazon.com, an American company, started the journey 1994 in a small garage based in Seattle, Washington. Today, twenty years later Amazon has become the world's largest web retailer with a predicted revenue around $100 billion in 2014. The founder Jeffrey Bezos, a former Wall Street broker, started Amazon.com by selling books online from the garage in Seattle through the website Amazon.com; With a mission to provide everything for everyone. The company is one of the most customer-centric company in the world and every decision taken by Amazon, started with the key question; What is the value for the customer? - to provide the costumer with the best possible experience of Amazon. Jeffrey Bezos did not care about profit or return to the shareholders; the main focus has always been to provide the costumers with the most enjoyable experience. By offering a wide range of products and services to the lowest possible price and a fast and convenient delivery. Over the years, the selection of products and services have expanded enormously from just...
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...Pass 2 - explain the process of distributing goods through different channels from the manufacturer to the customer In the last four hundred hears distribution methods have changed. This is because of changes in technology as well as how goods are now transported and stored. An example of an improvement to storage is that the products can now be refrigerated or even whilst being transported as well. Technology has changed distribution methods as products such as music and films are now able to be downloaded from the internet, creating a digital distribution method. Hard goods, perishable goods and digital information products all require different storage and transportation methods. One of the most traditional distribution methods for transportation is by land – this can be either by lorry or by train. Land distribution is good for relatively short transport times (short and medium distances). It is also ideal for transporting heavy and bulk goods and is suitable for products with a long shelf life. On the other hand, land transportation doesn’t have very fast delivery times; this can be due to traffic jams, for example. It can also be quite costly because of petrol and maintenance costs and the land distribution will have a limited transport volume. Another traditional distribution method is by sea. This is also good for transporting heavy and bulk goods but, unlike land transportation, distributing by ship means that there is no need for special architecture such as roads...
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...the flow of information regardless of geographical restrictions. Evidently, such dramatic improvements in information flow have had tremendous effects on the way companies run their day to day operations. The business sector chosen for this assignment is online retail industry, which constitutes a significant portion of current business transactions. The modern business world greatly depends upon the online retail industry as this sector provides customers with many shopping conveniences and time benefits. This paper will specifically discuss online retail industry, and analyze how internet related capabilities have impacted marketing and sales practices, distribution, governmental activities, bill paying, and banking transactions in this sector. To illustrate the changes clearly, the paper will give a specific focus on the Amazon, a US based multinational E-commerce company headquartered in Seattle. Online Retail Industry Undoubtedly, emergence of internet contributed to the development of online retail industry. Business houses realized that internet based operations would be an effective way to expand their market coverage and thereby improve market share. However, companies identified that technological innovations and efficient management are two components necessary for ensuring successful business operations. Historically, online retail industry has been established and grown in the United States very fast as compared to other developed nations. It is obvious that US is...
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...Amazon E-Commerce Amazon.com has always sold goods out of its own warehouses. It started as a bookseller, pure and simple, and over the last decade has branched out into additional product areas and the third-party sales that now represent a good chunk of its revenue (some estimates put it at 25 percent). Both retailers and individual sellers utilize the Amazon.com platform to sell goods. Large retailers like Nordstrom, Land's End and Target use Amazon.com to sell their products in addition to selling them through their own Web sites. The sales go through Amazon.com and end up at Nordstrom.com, Land's End.com or Target.com for processing and order fulfilment. Amazon essentially leases space to these retailers, who use Amazon.com as a supplemental outlet for their online sales. Small sellers of used and new goods go to Amazon Marketplace, Amazon zShops or Amazon Auctions. At Marketplace, sellers offer goods at a fixed price, and at Auctions they sell their stuff to the highest bidder. Amazon zShops features only used goods at fixed prices. If an item listed on zShops, Marketplace or Auctions is also sold on the main Amazon.com, it appears in a box beside the Amazon.com item so buyers can see if someone else is selling the product for less in one of the other sales channels. Another sales channel called Amazon Advantage is a place where people can sell new books, music and movies directly from the Amazon warehouse instead of from their home or store. Sellers ship a number of...
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