This procedure motivates the examination A good example here is Amazon. The company is aggressively moving into adjacent dependent segments of the CSC.
Over a long period of time, Amazon
has been building its own full-fledged technology job function email list for solving logistics issues. Currently, the company manages about 20 thousand trucks and 60 cargo aircraft. In 2019, Amazon’s logistics system took first place in the list of the company’s product delivery channels, providing about half of all deliveries.
Solving mainly its own problems,
Amazon already serves 18% of the total volume of deliveries from online stores on the US market. It is quite natural that the next stage of the company’s development will be related to providing logistics services to other enterprises.
At the same time, it is quite possible
that the cost of delivery will be the most affordable on the market, since Amazon does not have the task of obtaining maximum profit from the new direction in the near future. In the current situation, it will be more profitable for the company to occupy the adjacent dependent segment of the CSC, and only then increase the profitability of the business. Such tactics pose a threat to Fedex and UPS.
These companies have been growing for a long use storytelling to capture the imaginationuse storytelling to capture the imagination time and are making profits, which are mostly related to Amazon’s activities. Since 2000, Fedex and UPS have almost tripled their turnover and are profitable.
Another example of Amazon’s strategy
to enter adjacent dependent segments is related to the launch of sales under its own brands in several niches where other operators previously dominated. Amazon pays attention to attractive business sectors that the company can easily occupy, given the available resources and advantages that allow it to maintain a leading position in the market.
Read also!
7 Steps to Performing a Value Chain Analysis
Value chain analysis is a tool for examining all activities represented in the enterprise’s value chain, which allows identifying segments where there is potential for improvement.
of each stage from the perspective of its contr contact lists ibution (positive or negative) to the value of the final product. Analysis of the CSC can contribute to the realization of certain forms of competitive advantage, including:
- Differentiation of a product or service as a result of the involvement of significant resources (material, intellectual, etc.) in research, design, engineering and advertising aimed at distinguishing the product from competitors’ offerings.
- Minimizing costs by increasing the efficiency of each element in the enterprise value chain.
