Case 6: The Get Big Fast Strategy

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CASE 6
Question 1
The Get Big Fast strategy was aimed at gaining a competitive advantage by increasing the revenue Amazon got from each customer. This was achieved by agile and increased product differentiation with its own supply chain and distribution network. The company implemented the Supply Chain Strategist Software package to identify strategic distribution centers. The use of technology enabled the company to take different factors to account in optimizing the best locations for the distribution centers, which increased operational efficiency by reducing the shipping time to different target markets. The company then identified the products each distribution center would offer, which resulted in increased differentiation of products across all centers. This facilitated quick delivery on order. The company then invested in the latest equipment for the warehouses, which increased efficiency in processing orders. The company later introduced key metrics to measure employee performance, which facilitated quality and productivity in the distribution centers.
Question 2
The loss in Net Income every year can be attributed to the investments made by the company as it increased the type of products and expanded to other regions. The increased customer base required the company to develop a reliable distribution network, which involved investing in warehouses and technologies that would increase efficiency. Suggestively, the company was building the foundations for a competitive future, which implies that as the customer base expanded over the years, there was more revenue but a loss in the net income due to the resources committed to growth and development of the company. In this light, there were strategic considerations, which involved developing a reliable and eff...