Question: Read HBS Case (9-605-002): Amazon.coms European Distribution Strategy. Please answer the following questions. (pg 13,14) Did Amazon need three independent distribution centers in the UK,
Read HBS Case (9-605-002): Amazon.coms European Distribution Strategy. Please answer the following questions. (pg 13,14)
- Did Amazon need three independent distribution centers in the UK, Germany and France or could it build a European distribution network (EDN) where the location of inventory would be strategically, rather than geographically, determined?
- Location of EDNs DCs.
- Other questions arose regarding the location of the EDN's DCs. With over two-thirds 34 of the UK's orders delivered to customers located south of the Marston Gate DC, should Amazon keep the French DC?
- If Amazon expanded into other European countries, should it fulfill these orders from an existing DC or should Amazon consider a new location for a new DC or hub?
- Tom Taylor also had to define an implementation plan. Would he start by dissociating DCs from country websites?
- Would he start by doing tests on specific product categories from specific locations?
- Would it make sense to implement an infrastructure in which UK suppliers would send items to the German warehouse to ship it back to customers located in the UK?
- Is Amazon doing the right thing for its customers as well as for the company? Would the customer experience deteriorate? Would Amazon be able to detect fast moving items or other demand trends for each country if buying was to be consolidated at the European level?
- Did the EDN make sense in the context of strong growth? If so, which option should Taylor choose?
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