AllRoad Parts’ competitive strategy is focus differentiation as they would like to be the largest inventory of spare parts. However, this approach poses a threat from 3D printing rivals and the extra costs involved with inventory.
3-5. Summarize the advantages and disadvantages for AllRoad Parts to sell items via Amazon.com. Would you recommend that the company do so? The advantages of selling items via Amazon.com include paying a small fee every month that includes packing and shipping, inventory, customer support 24/7 in the languages of the marketplaces it sells. Therefore, AllRoad Parts’ can save money on storage space, shipping protocols, returns, and increased chances …show more content…
By exchanging data, retailers can integrate Amazon marketplace into their current applications and workflow to increase selling efficiency, and improve overall customer satisfaction (Amazon.com - Marketplace Web Service). If AllRoad Parts were to use FBA, and sign up for MWS, it would help them grow their business faster, because this solution can provide them with the data they need for organizational strategy.
3-10. In your opinion, does it make sense for AllRoad Parts to use FBA? Justify your answer.
It makes perfect sense for AllRoad Parts to use FBA for now until they can afford to purchase a large facility for inventory and create an information system to sell and advertise their products. I believe that selling items on Amazon.com is one of the fastest and easiest ways to improve sell rate and increase profits.
3-11. How, it at all, would your answers to questions 3-4 through 3-10 change if AllRoad Parts makes some of its parts using 3D printing? My answers will remain the same with the exception of question 3-4, as I believe that AllRoad Parts’ competitive strategy will have to change to focus on being the cost leader if they make some of its parts using 3-D