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Amazon as a Distribution Giant

This was, hands down, my most favorite article I have read all semester.  I work in supply chain management, and Amazon has this stuff figured out.  Check out the highlights from the article  below: ·       Amazon is helping industrial real estate blow up ·       During the holiday seasons, Amazon warehouses ship 1 million items + a day ·       Some of the fulfillment centers cover upwards of 1 million square feet ·       Amazon now has warehouses within 20 miles of half the US population ·       Amazon accounts for 10% of UPS revenues ·       Amazon now has its own delivery service ·       Amazon is the largest corporate buyer of renewable energy ·       Amazon has 42 cents of every dollar spent online ·       Amazon deliveries require 1 minute of human labor Of the above statements, one of the most profound is the sheer market that Amazon has.   To think that an Amazon DC is likely 20 miles or less from any of us is mind-blowing.   UPS, one of the l
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How Customers Perceive a Price Is as Important as the Price Itself

All too often, companies will change their pricing very subtly to either increase margin or move more product.   When they do this, often time’s consumers will not even notice.   What companies must do is ensure that their prices are in-line or below that of their competitors.   Where a company positions themselves among competitors is also a very key factor in consumer perception and expected sales.   For example, if a luxury goods company were to price lower than the competitors consistently, they may be perceived as lower quality, and will not attract the intended clientele to the brand.               This relates directly to some course discussions and some readings in Chapter 11.   When competitive behavior is discussed, it brings about the discussion of Levi’s jeans.   In the United States, Levi’s are a very normal, no-nonsense, every day brand of jeans that are priced accordingly.   These jeans are sold at outlet stores and at large big-box retailers in the U
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Product Decisions: BMW Going More Upmarket?

BMW’s in the United States have always been considered to be an indulgent purchase or a status symbol.   When you see someone with a BMW, there is a certain stigma about them.   However, globally, and specifically in Europe, BMW’s are more common cars, driven by families and working class folks.   BMW’s design department plays a key role in how the cars make consumers feel.   BMW is trying to bridge those gaps in the way their brand is perceived, and also trying to diversify and appeal to a broader consumer base.   With the introduction of its i-brand cars (electric cars), the mainstream sellers (such as the 3 and 5 series sedans and wagons), and now its new Bayerische Motoren Werke models, they are appealing to eco-friendly people, the everyday family and entry level luxury segment, and with super luxury segment.             With the introduction of this Bayerische Motoren Werke line of super-luxury BMW’s, it seems as if the company is playing into the Country of O
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