Case: The Amazon of Innovation

QUESTIONS

1. Based on the facts presented in this case, what do you think is Amazon.com's competitive strategy? Justify your answer.

2. Jeff Bezos, CEO of Amazon.com, has stated that the best customer support is none. What does that mean?

3. Suppose you work for Amazon or a company that takes innovation as seriously as Amazon does. What do you suppose is the likely reaction to an employee who says to his or her boss, "But, I don't know how to do that!"?

4. Using your own words and your own experience, what skills and abilities do you think you need to have to thrive at an organization like Amazon?

5. What should UPS and FedEx be doing in response to Amazon.com's interest in drone delivery? In answering questions 6 through 11, first assume that AllRoad Parts does not use 3D printing to manufacture parts.

6. Summarize the advantages and disadvantages for AllRoad Parts to sell items via Amazon.com. Would you recommend that the company do so?

7. For items that it sells itself, compute AllRoad Parts' cost of using FBA to process:

a. An order of 10 sets of bicycle pedals weighing a total of 25 pounds.

b. An order of a single set of bicycle pedals weighing 2.5 pounds.

c. A cycling shirt weighing 10 ounces.

d. Storage for 1,000 sets of bicycle pedals for 3 months (using your own assumptions).

8. If AllRoad Parts were to use FBA, what business processes would it not need to develop? What costs would it save?

9. If AllRoad Parts were to use FBA, what information systems would it not need to develop? What costs would it save?

10. If AllRoad Parts were to use FBA, how would it integrate its information systems with Amazon's? (To add depth to your answer, Google the term Amazon MWS.)

11. In your opinion, does it make sense for AllRoad Parts to use FBA? Justify your answer.

12. How, if at all, would your answers to questions 63 through 11 change if AllRoad Parts makes some of its parts using 3D printing?