Questions & Case : Chad’s Creative Concepts
Q2: Consider Amazon.com, whose Web site enjoys millions of “hits” each day and puts customers in touch with millions of services and products. What are Amazon.com’s competitive priorities and what should its operations strategy focus on?
The competitive priorities of Amazon are
• Variety ( it offers millions of services and products),. • Low-cost (online sales),
• consistent quality
• delivery speed
In my opinion its operations strategy should focus on Customer relationship-Variety. Amazon.com uses information technology and streamlined customer relationship and order fulfillment processes to reliably deliver a vast variety of items to its customers.
Q4: FedEx built its business on quick, dependable delivery of items being shipped by air from one business to another. Its early advantages included global tracking of shipments using Web technology. The advancement of Internet technology enabled competitors to become much more sophisticated in order tracking. In addition, the advent of web-based businesses put pressure on increased ground transportation deliveries. Explain how this change in environment has affected FedEX’s operations strategy, especially relative to UPS, which has a strong hold on the business- to- customer ground delivery business.
The technological advances cut into the demand for FedEx’s traditional services, UPS uses its expertise in logistics and warehousing processes to deliver a very large volume of shipments on-time across the globe. To remain competitive, FedEx came up with new operations strategy- created two new services: FedEx Ground (focus on business-to-business deliveries via a recently procured trucking company) and FedEx Home Delivery (specializes in deliveries to residences ). Also, FedEx invested $100 million in processes to coordinate the flow of goods. The goals of FedEx is now low-cost operations and dependable delivery....
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