Amazon Europe Strategy

  1. Pace, ease and satisfaction for the client was what controlled the Amazon distribution model in the US and when it was successful it acquired the attribute of being the largest book station. Inventories were limited levels, as the organization relied on wholesalers to undertake goods and distribute books when called upon to. Later there were one to one associations with the publishers, even though they were no competent in distribution; the discounts were greater to an extent, the fulfillment periods varied.

The distribution centers capacity grew, stocks increased and investments were created in logistics. The period at which distribution is done was limited and the client service was elevated due to the growth. The network is composed of a two tier systems of distribution which would be able to limit distribution period in market and do away with complexities. It is here that cost saving would be acquired and demands and chances are met. The network is composed of credit card friendly system as well as an internet purchase model that is meant of the clients.

With more competition, Amazon’s growth developed in production and structure. Contracts were settled on with suppliers for more product lines just as it was for books. However at the end of 1999, the objective to distribute at varied costs had overruled this aim as well as other cost-saving intentions.

A main concern for Amazon in the US market was to increase its network processes. In the later years, the limitation of cost was acquired in stocking and delivery through shipping duties, while quality and service was on a high. Operations reliant on places, size, competent and period were working with the help of IT models and suppler help.

After seven years the company grew from an internet based company to a warehouse company based in Seattle, US. One of major attributes for development as desire to acclimatize to structurally variation in demands while at the same time elevating the level of service to clients. This aimed to meet the awaiting changes in the European supply chain.

Source: (Simionovich, 2009) retrieved from: http://www.google.co.ke/imgres?imgurl=http://www.simionovich.com