Amazon And The Postal Service Channel Conflict

Many are aware that working with a partner or group can create outstanding outcomes. This is true for Amazon and the U.S Postal Service. These two businesses have joined together to deliver groceries to customers and other businesses. A two-month trial was launched in August to deliver meat, dairy, produce and other groceries within the San Francisco area (Bensinger & Stevens, 2014). The goal for Amazon and the U.S Postal Service is to deliver groceries to customers in a more innovative, efficient, and quicker way in order to boost e-commerce and revenue. While trial was being conducted, both businesses had to battle with competitors like Wal-Mart Stores, Peapod LLC, and Instacart Inc. (Bensinger & Stevens, 2014). All of the competitors sell
Amazon and the U.S Postal service can experience channel conflict. Channel conflict happens when a channel members’ actions prevent another channel member from achieving its goal (Kotler, P. & Keller, K, 2012). An example of this happening can be during the holiday season. Amazon’s goal during the holidays can be to offer next-day delivery until the night before Christmas. However, this can cause a problem if the U.S Postal Service decides to close on Christmas Eve or send its workers home early. This problem can hinder Amazon’s goal to deliver items to its customers on Christmas
One way it will help benefit the U.S Postal Service is by increasing its value network. Value network is a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings (Kotler, P. & Keller, K, 2012). Amazon is a very well-known company that has been prospering since the company began. Partnering with Amazon may increase how the customer value the U.S Postal Service. This will cause customers to become more aware and attracted to the U.S Postal Service and they will start using their services more. The U.S Postal service can gain a lot of new customers in which this will help to increase its