Amazon is popularly known for the products it sells online. Because of the growing demands of people, there is a need for Amazon to reconstruct its distribution network. Distribution networks are very important because it is through these that marketers are able to reach their targeted consumers. Thus, Amazon is able to provide their customers with their products when there is an efficient flow of the distribution of the goods and services it offer. For the purposes of this paper, Amazon's distribution strategy in Europe will be discussed.
Two Separate Distribution Centers and a Decentralized Management
According to the Canada Foundation for Nepal (2009), centralized systems enable the direct control …show more content…
Hence, the Amazon in Europe must have two separate distribution centers and a decentralized management both in its northern and southern part. To Chand (2015), decentralization will effectively facilitate the diversification of products. Aside from that, there is better control and supervision of the products that buyers are interested to buy when authority is decentralized. Also, it is through decentralization that Amazon is able to meet the demands of the people. It can also facilitate the process of its growth and expansion in the course of its business operation. When distribution centers are allowed to operate as an entity, Amazon is able to decide what products to sell that appeal most to the consumers and the local market at large (Joseph, 2016). Hence, having two separate distribution centers and a decentralized management for the northern and southern part of Europe will clearly lead to several benefits that Amazon can enjoy. For one, there would be a reduction in the mismatch of the demand and supply. In this case, the distribution centers are able to operate with ease. Aside from that, it is expected that there is a balance is flexibility in Amazon's operation because the load of work …show more content…
Business is made possible online. This is the reason why Amazon has become very popular to the many states worldwide. Because of this, Amazon must be able to use a distribution system that will ensure that they are able to reach their targeted consumers to provide them with the products that they are interested in. A centralized distribution strategy will not be effective for Amazon. As such, it must have to separate distribution centers and a decentralized management in the northern and southern parts of Europe. Through this, Amazon is able to reduce mismatch tendencies with regard demand and supply. Aside from that, it is able to balance the work load and be flexible because it does not have to depend on a single distribution center. Most especially, it will be easier for Amazon to expand to other countries when decentralized management is used