.3.2 Strategic Option 2: Service Development -
Providing a ‘greener’ delivery option.Consumers will be given the choice of selecting the standard delivery option or the ‘greener’ delivery option. The ‘green’ option means that the items will be delivered in a biodegradableplastic container. The consumer will be encouraged to return the box after use in return for a ‘green point’. After collecting a certain amount of points, the consumer will be sent an e-voucher to be spent at Amazon.com. Boxes will be re-used by Amazon.com in futuredeliveries, which in the long-term will reduce cost of packaging and ensure less wastage.
Suitability
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This strategy will address the issue of increased environmental awareness, ashighlighted in the PESTLE analysis.
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This is an important issue for the e-retailing industry as all products need to be sent tocustomers.
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This strategy builds on Amazon.com’s past efforts to maintain environmentalawareness as highlighted in the Resource Based View analysis.
Feasibility
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Biodegradable plastic containers, whilst currently available, will require extensiveresearch by Amazon.com to ensure that all products can be transferred safely toconsumers. Amazon.com has an active research and development department whichcan be utilised for this purpose.
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Amazon.com has highly experienced workers (as shown in the Value Chain) who shouldbe able to create and manage the new ‘green points’ system and e-vouchers.
Acceptability
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There is a risk that the consumers will not return the boxes for re-use. The cost-benefitmentioned above will therefore not be obtained.
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As society becomes more socially aware, consumers will want to make a differencethrough their packaging choice.
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Governments may take an interest in the greener initiative and may supportAmazon.com in some capacity.
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Value creation and the possibility of reduced costs should lead to increased returns forshareholders.