Consider Amazon’s distribution network.How is Amazon using its distribution network to be both responsive and cost-effective?Evaluate Amazon’s distribution network on the following measures that determine the value provided to the customer.Response timeProduct varietyProduct availabilityCustomer experienceTime to marketOrder visibilityReturnabilityDo you think Amazon currently has the number of facilities to minimize its logistics cost , or it has decided to go beyond that minimum point to further improve its responsiveness? Do you think this decision is aligned with Amazon strategic position within the efficiency-responsiveness spectrum?

Answered: Consider Amazon’s distribution network.…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

Consider Amazon’s distribution network.
1. How is Amazon using its distribution network to be both responsive and cost-effective?
2. Evaluate Amazon’s distribution network on the following measures that determine the value provided to the customer.
  1. Response time
  2. Product variety
  3. Product availability
  4. Customer experience
  5. Time to market
  6. Order visibility
  7. Returnability
3. Do you think Amazon currently has the number of facilities to minimize its logistics cost , or it has decided to go beyond that minimum point to further improve its responsiveness? Do you think this decision is aligned with Amazon strategic position within the efficiency-responsiveness spectrum?

Expert Solution

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Introduction:

It took more than 20 years for Amazon to create and successfully operate their innovative style of distribution system. although, in initial years it certainly took a huge investment but with their continuous innovative customer centric approach made their distribution system unique, very much responsive and cost-effective. To understand their success in their delivery system, we need to understand their supply chain management approach. Amazon's supply chain management approach stands on 4 basic pillars: