screen shot of AMAZON.CA

Amazon is recently corroborating with Postal Service while still having UPS as a parter, aiming to reduce late shipments. Other than that, it is building more sortation centres to store its inventory. As Marilyn stated,

These two changes made can potentially solve the biggest problem that the company faces: late shipments is not only costing the company money, but also its brand image and buyers’ trust.

I somewhat disagree with the points.

Amazon should act in concordance with its value proposition, innovative and viable.

Since service of postal service is covered by UPS, which is known for efficiency and holiday-free policy. The change in delivery may break its brand promise(value preposition) of viable, which was supported by its strong partner UPS while providing no significant benefit. Apart from that, Amazon has been closing its shopping centres in Kansas, indicating a negative marginal benefit in building new shipping centres.

Alternatively, it would be a great idea if they choose DHL as their extra parter to decrease late shipment rate. DHL provides drone services (PoD) and can be used to show Amazon’s compatibility with innovative technologies, reinforcing its value proposition.

Comment on Jiang, Marilyn’s Blog “Amazon works on Reducing late shipments to improve customer satisfaction”

Picture: A screen shot of www.amazon.ca

Reference:

Weiss, Richard “DHL beats Amazon, Google to first planned drone delivery”, Bloomberg, <http://www.bloomberg.com/news/2014-09-25/dhl-beats-amazon-google-to-first-scheduled-drone-delivery.html> Sep 24, 2014

Johnson W. Mark “Amazon’s Smart and Innovative Strategy” Business Week, <http://www.businessweek.com/innovate/content/apr2010/id20100412_520351.htm> April 12, 2012

“Amazon closing Kansas Shipping Center” NewsOn6, <http://www.newson6.com/story/26671586/amazon-closing-kansas-shipping-center> Sep 30, 2014