Amazon "forward-integrates" into shipping
One of the strategy topics we will address in the coming weeks is the "vertical" scope of the firm and its related upstream/downstream value-chain positioning. Amazon presents a current "real-world" application of related concepts as it expands beyond marketing and distribution into shipping. You're probably already familiar with Amazon's interest in using drones for package delivery and its use of couriers for same-day Amazon Prime delivery in select cities, but its efforts also include its own fleet of airplanes and trucks. You can read more about it here: Bloomberg Businessweek: Will Amazon Kill FedEx? (https://www.bloomberg.com/features/2016-amazon-delivery/)
Answer the following questions in 2 pages. No introduction/ conclusion needed. Just answer the following questions directly.
• What is your reaction? Do you think this is a wise strategy for Amazon, or does it risk losing focus on what it does best?
• Do you think this is only vertical integration, or is it a diversification tactic to enter the delivery logistics business the same way it used its e-commerce platform to launch Amazon Digital Services?
• Do you believe the stated rationale that its efforts are meant to augment the services it gets from UPS and FedEx, or is this a way to gain bargaining leverage? If you were FedEx or UPS, how would you respond?
Evaluation criteria will include the use of critical thinking; application of concepts from the course (or other relevant fields); and significance to business, economic growth, or society at large.