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ith respect to the case study, identify and discuss the key functions performed by A

ith respect to the case study, identify and discuss the key functions performed by A

Principles Of Marketing
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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With respect to the case study, identify and discuss the key functions performed by Amazon's marketing team.
Distribution systems and strategies do not guarantee the success or growth of e-commerce and e-business in the distribution industry. However, recognising the importance of distribution systems and strategies and developing and continuously improving distribution systems significantly affected the current success of Amazon. Recognising that "distribution systems will be one of the things that will separate the winners from losers", Amazon from early on in 1999 "decided to take command of inventory and shipping activities themselves". Amazon recognised that all the best websites, marketing, or other features would be useless if the products were not delivered on time. It then determined that the expansion of its own distribution centers would increase efficiency and decrease shipping costs, and by 2001, operated an aggregate of over 4 million square feet of fulfilment facility spaces in Delaware, Kansas, Kentucky, Nevada, North Dakota, and Washington in the United States and abroad in United Kingdom, France Germany, and Japan. Currently, Amazon operates an aggregate of over 138,825,900 active square feet of warehouse spaces in 28 states throughout the United States and Canada, Mexico, United Kingdom, Germany, France, Italy, Spain, Czech Republic, Poland, China, Japan, India, and Brazil. In the beginning, Amazon packages were typically picked up by UPS, FedEx, or the U.S. Postal Service at one of the fulfilment centers. However, in addition to the cost issue, these third-party delivery companies have not always been reliable, and when UPS and FedEx failed to deliver thousands of packages guaranteed to be delivered by Christmas. Amazon was forced to revamp and make strategic moves to gain more control over its delivery system: To "increase capacity for package delivery, Amazon purchased thousands of semi-truck trailers to transport packages between fulfilment and sort centers around the country." Source: https://www.koreascience.or.kr/article JAKO201816357065337.pdf
Transcribed Image Text:Distribution systems and strategies do not guarantee the success or growth of e-commerce and e-business in the distribution industry. However, recognising the importance of distribution systems and strategies and developing and continuously improving distribution systems significantly affected the current success of Amazon. Recognising that "distribution systems will be one of the things that will separate the winners from losers", Amazon from early on in 1999 "decided to take command of inventory and shipping activities themselves". Amazon recognised that all the best websites, marketing, or other features would be useless if the products were not delivered on time. It then determined that the expansion of its own distribution centers would increase efficiency and decrease shipping costs, and by 2001, operated an aggregate of over 4 million square feet of fulfilment facility spaces in Delaware, Kansas, Kentucky, Nevada, North Dakota, and Washington in the United States and abroad in United Kingdom, France Germany, and Japan. Currently, Amazon operates an aggregate of over 138,825,900 active square feet of warehouse spaces in 28 states throughout the United States and Canada, Mexico, United Kingdom, Germany, France, Italy, Spain, Czech Republic, Poland, China, Japan, India, and Brazil. In the beginning, Amazon packages were typically picked up by UPS, FedEx, or the U.S. Postal Service at one of the fulfilment centers. However, in addition to the cost issue, these third-party delivery companies have not always been reliable, and when UPS and FedEx failed to deliver thousands of packages guaranteed to be delivered by Christmas. Amazon was forced to revamp and make strategic moves to gain more control over its delivery system: To "increase capacity for package delivery, Amazon purchased thousands of semi-truck trailers to transport packages between fulfilment and sort centers around the country." Source: https://www.koreascience.or.kr/article JAKO201816357065337.pdf
Expert Solution
Step 1: Introduction

E-commerce companies like Amazon survive on their capacity to efficiently distribute products to consumers worldwide. Success comes from strategic design and constant improvement of distribution systems, not just their existence.


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