A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method

Wang Na

doi:doi:10.11648/j.ijebo.20231101.11

| Peer-Reviewed

A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method

Wang Na

Published in International Journal of Economic Behavior and Organization (Volume 11, Issue 1)

Received: 29 October 2022 Accepted: 5 December 2022 Published: 17 January 2023

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

In a world where most businesses are innovating or digitally transitioning, neglecting to experiment puts businesses at a disadvantage by making them increasingly irrelevant to the consumers, resistant to change, and unable to compete with larger and more efficient rivals. According to a survey by McKinsey, 84% of professionals feel that future success is dependent on continuous innovation in order to gain competitive advantage in the industry and respond to the competition. On June 13, 2022, Amazon announced its plans to make its first drone deliveries in Lockeford, California. The idea of delivery with the help of drones represents a true innovation in the e-commerce business, fastening the delivery service in a way that was almost unimaginable a few years back. However, the company faces diverse challenges endangering its project, including ever changing regulations, skepticism from the customers, and safety concerns. All of this leads to a launch that has been postponed for years, questioning the viability of the project. Indeed, Amazon has the potential to be a huge success once it finally launches its operations as it can develop a strong competitive advantage. This case analysis aims at discussing the factors involved in the implementation of the Amazon Prime Air project to investigate whether delivery drones can possibly be a disruptive technology. This case analysis is intended to be a helpful source for class discussions as well.

Published in	International Journal of Economic Behavior and Organization (Volume 11, Issue 1)
DOI	10.11648/j.ijebo.20231101.11
Page(s)	1-6
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Amazon, Technology Innovation, Disruptive Technology, Drones, Delivery Drones

References

[1]	MordorIntelligence. (2022). Delivery Drones Market Size, Analysis (2022 - 27) \| Industry Forecast. Mordor Intelligence. Retrieved July 11, 2022, from https://www.mordorintelligence.com/industry-reports/delivery-drones-market
[2]	Chauvin, Marguerite. (2022). Delivery Drone Market is Currently Booming Worldwide \| Know its Driving factors and Market Development Status.
[3]	Armstrong, M. (2021, November 5). How ready are people for futuristic delivery methods? The World Economic Forum. Retrieved July 16, 2022, from https://www.weforum.org/agenda/2021/11/future-tech-delivery-logistics-drone-robots/
[4]	Basu, N., Malara, N., & Kalluvila, S. (2020, August 31). Amazon receives U.S. regulatory approval to start drone delivery trials. Reuters. Retrieved June 10, 2022, from https://www.reuters.com/article/us-amazon-prime-air-idUSKBN25R2NG
[5]	J. Donald LaZerte (1989) MarketPull/Technology Push, Research-Technology Management 32: 2, 25-29, doi: 10.1080/08956308.1989.11670583.
[6]	AWS. (n.d.). Prime Air & Siemens – Amazon Web Services (AWS). Amazon AWS. Retrieved July 13, 2022, from https://aws.amazon.com/partners/success/prime-air siemens/?nc1=hls
[7]	AWS. (2020, December 3). Siemens Smart Infrastructure Chooses AWS as Its Preferred Cloud Provider for SAP Environments \| Amazon.com, Inc. - Press Room. Amazon Press Center. Retrieved July 15, 2022, from https://press.aboutamazon.com/news releases/news-release-details/siemens-smart-infrastructure-chooses-aws-its-preferred cloud
[8]	Rodrigue, Jean-Paul. (2020). The distribution network of Amazon and the footprint of freight digitalization. Journal of Transport Geography. 88. doi: 102825. 10.1016/j.jtrangeo.2020.102825.
[9]	Pandey, E. (2019, June 27). Amazon beats out FedEx, UPS and the US Postal Service to become its own biggest shipper. Axios. Retrieved July 15, 2022, from https://www.axios.com/2019/06/27/amazon-shipping-chart-fedex-ups-usps
[10]	Kersley, A. (2021, August 3). The slow collapse of Amazon's drone delivery dream. Wired UK. Retrieved July 15, 2022, from https://www.wired.co.uk/article/amazon-drone delivery-prime-air
[11]	Stern, M., & Retailwire. (n.d.). Crash Raises Doubts For Amazon’s $2 Billion Drone Program. YouTube. Retrieved July 14, 2022, from https://www.forbes.com/sites/retailwire/2022/04/19/crash-raises-doubts-for-amazons-2-billion-drone-program/?sh=716524c237c6
[12]	Wayt, T. (2021, August 3). Amazon's drone delivery team 'collapsing,' losing over 100 workers: report. New York Post. Retrieved July 12, 2022, from https://nypost.com/2021/08/03/amazons-drone-delivery-team-collapsing-losing-over 100-workers
[13]	Wolf, H. (2020, September 9). 3 factors that will decide who wins the drone delivery race. The World Economic Forum. Retrieved July 15, 2022, from https://www.weforum.org/agenda/2020/09/the-drone-revolution-3-questions/
[14]	MacroTrends. (2022). Amazon Goodwill and Intangible Assets 2010-2022. AMZN. MacroTrends. Macrotrends. Retrieved July 11, 2022, from https://www.macrotrends.net/stocks/charts/AMZN/amazon/goodwill-intangible-assets total
[15]	Dans, E. (2018, February 10). Amazon takes vertical integration to a new level. Medium. Retrieved July 14, 2022, from https://medium.com/enrique-dans/amazon-takes-vertical integration-to-a-new-level-d9fd65d4d06d
[16]	Gao, T., Chai, Y., & Liu, Y. (2018, April 11). A review of knowledge management about theoretical conception and designing approaches. International Journal of Crowd Science, 2 (1), 42-51. doi: 10.1108/IJCS-08-2017-0023.
[17]	Adesina, Aderonke & Ocholla, Dennis. (2020). The SECI Model in Knowledge Management Practices. Mousaion: South African Journal of Information Studies. 37. 34. doi: 10.25159/2663-659X/6557.
[18]	Amazon. (2022). Prime Air. Amazon.jobs. Retrieved July 14, 2022, from https://www.amazon.jobs/zh/teams/prime-air
[19]	Ivory Research. (2021, November 15). Report on Knowledge Management at Amazon Inc. Ivory Research. Retrieved July 15, 2022, from https://www.ivoryresearch.com/samples/report-on-knowledge-management-at-amazon inc/
[20]	Berthelot, B. (2021, November 11). Amazon's Prime Air Drone Unit Quietly Disbanded French R&D Team. Bloomberg.com. Retrieved July 15, 2022, from https://www.bloomberg.com/news/articles/2021-11-12/amazon-s-prime-air-drone-unit quietly-disbanded-french-r-d-team
[21]	Phipps, S. (2020, May 17). Amazon unmanned drones, biggest development for years? Supply Chain Digital. Retrieved July 13, 2022, from https://supplychaindigital.com/logistics/amazon-unmanned-drones-biggest-development years
[22]	Rosenberg, M. (2014, July 29). The Knowledge Management Genius of Amazon.com. Learning Solutions. Retrieved July 11, 2022, from https://learningsolutionsmag.com/articles/1480/the-knowledge-management-genius-of amazoncom

Cite This Article

Plain Text BibTeX RIS

APA Style

Wang Na. (2023). A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method. International Journal of Economic Behavior and Organization, 11(1), 1-6. https://doi.org/10.11648/j.ijebo.20231101.11

Copy | Download

ACS Style

Wang Na. A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method. Int. J. Econ. Behav. Organ. 2023, 11(1), 1-6. doi: 10.11648/j.ijebo.20231101.11

Copy | Download

AMA Style

Wang Na. A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method. Int J Econ Behav Organ. 2023;11(1):1-6. doi: 10.11648/j.ijebo.20231101.11

Copy | Download

@article{10.11648/j.ijebo.20231101.11,
  author = {Wang Na},
  title = {A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {11},
  number = {1},
  pages = {1-6},
  doi = {10.11648/j.ijebo.20231101.11},
  url = {https://doi.org/10.11648/j.ijebo.20231101.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20231101.11},
  abstract = {In a world where most businesses are innovating or digitally transitioning, neglecting to experiment puts businesses at a disadvantage by making them increasingly irrelevant to the consumers, resistant to change, and unable to compete with larger and more efficient rivals. According to a survey by McKinsey, 84% of professionals feel that future success is dependent on continuous innovation in order to gain competitive advantage in the industry and respond to the competition. On June 13, 2022, Amazon announced its plans to make its first drone deliveries in Lockeford, California. The idea of delivery with the help of drones represents a true innovation in the e-commerce business, fastening the delivery service in a way that was almost unimaginable a few years back. However, the company faces diverse challenges endangering its project, including ever changing regulations, skepticism from the customers, and safety concerns. All of this leads to a launch that has been postponed for years, questioning the viability of the project. Indeed, Amazon has the potential to be a huge success once it finally launches its operations as it can develop a strong competitive advantage. This case analysis aims at discussing the factors involved in the implementation of the Amazon Prime Air project to investigate whether delivery drones can possibly be a disruptive technology. This case analysis is intended to be a helpful source for class discussions as well.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method
AU  - Wang Na
Y1  - 2023/01/17
PY  - 2023
N1  - https://doi.org/10.11648/j.ijebo.20231101.11
DO  - 10.11648/j.ijebo.20231101.11
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 1
EP  - 6
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20231101.11
AB  - In a world where most businesses are innovating or digitally transitioning, neglecting to experiment puts businesses at a disadvantage by making them increasingly irrelevant to the consumers, resistant to change, and unable to compete with larger and more efficient rivals. According to a survey by McKinsey, 84% of professionals feel that future success is dependent on continuous innovation in order to gain competitive advantage in the industry and respond to the competition. On June 13, 2022, Amazon announced its plans to make its first drone deliveries in Lockeford, California. The idea of delivery with the help of drones represents a true innovation in the e-commerce business, fastening the delivery service in a way that was almost unimaginable a few years back. However, the company faces diverse challenges endangering its project, including ever changing regulations, skepticism from the customers, and safety concerns. All of this leads to a launch that has been postponed for years, questioning the viability of the project. Indeed, Amazon has the potential to be a huge success once it finally launches its operations as it can develop a strong competitive advantage. This case analysis aims at discussing the factors involved in the implementation of the Amazon Prime Air project to investigate whether delivery drones can possibly be a disruptive technology. This case analysis is intended to be a helpful source for class discussions as well.
VL  - 11
IS  - 1
ER  -

Copy | Download

Author Information

Wang Na

School of Management, Asian Institute of Technology, Pathum Thani, Thailand

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Wang Na. (2023). A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method. International Journal of Economic Behavior and Organization, 11(1), 1-6. https://doi.org/10.11648/j.ijebo.20231101.11

Copy | Download

ACS Style

Wang Na. A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method. Int. J. Econ. Behav. Organ. 2023, 11(1), 1-6. doi: 10.11648/j.ijebo.20231101.11

Copy | Download

AMA Style

Wang Na. A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method. Int J Econ Behav Organ. 2023;11(1):1-6. doi: 10.11648/j.ijebo.20231101.11

Copy | Download

@article{10.11648/j.ijebo.20231101.11,
  author = {Wang Na},
  title = {A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {11},
  number = {1},
  pages = {1-6},
  doi = {10.11648/j.ijebo.20231101.11},
  url = {https://doi.org/10.11648/j.ijebo.20231101.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20231101.11},
  abstract = {In a world where most businesses are innovating or digitally transitioning, neglecting to experiment puts businesses at a disadvantage by making them increasingly irrelevant to the consumers, resistant to change, and unable to compete with larger and more efficient rivals. According to a survey by McKinsey, 84% of professionals feel that future success is dependent on continuous innovation in order to gain competitive advantage in the industry and respond to the competition. On June 13, 2022, Amazon announced its plans to make its first drone deliveries in Lockeford, California. The idea of delivery with the help of drones represents a true innovation in the e-commerce business, fastening the delivery service in a way that was almost unimaginable a few years back. However, the company faces diverse challenges endangering its project, including ever changing regulations, skepticism from the customers, and safety concerns. All of this leads to a launch that has been postponed for years, questioning the viability of the project. Indeed, Amazon has the potential to be a huge success once it finally launches its operations as it can develop a strong competitive advantage. This case analysis aims at discussing the factors involved in the implementation of the Amazon Prime Air project to investigate whether delivery drones can possibly be a disruptive technology. This case analysis is intended to be a helpful source for class discussions as well.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - A Case Analysis on Amazon Delivery Drones Taking over Traditional Delivery Method
AU  - Wang Na
Y1  - 2023/01/17
PY  - 2023
N1  - https://doi.org/10.11648/j.ijebo.20231101.11
DO  - 10.11648/j.ijebo.20231101.11
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 1
EP  - 6
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20231101.11
AB  - In a world where most businesses are innovating or digitally transitioning, neglecting to experiment puts businesses at a disadvantage by making them increasingly irrelevant to the consumers, resistant to change, and unable to compete with larger and more efficient rivals. According to a survey by McKinsey, 84% of professionals feel that future success is dependent on continuous innovation in order to gain competitive advantage in the industry and respond to the competition. On June 13, 2022, Amazon announced its plans to make its first drone deliveries in Lockeford, California. The idea of delivery with the help of drones represents a true innovation in the e-commerce business, fastening the delivery service in a way that was almost unimaginable a few years back. However, the company faces diverse challenges endangering its project, including ever changing regulations, skepticism from the customers, and safety concerns. All of this leads to a launch that has been postponed for years, questioning the viability of the project. Indeed, Amazon has the potential to be a huge success once it finally launches its operations as it can develop a strong competitive advantage. This case analysis aims at discussing the factors involved in the implementation of the Amazon Prime Air project to investigate whether delivery drones can possibly be a disruptive technology. This case analysis is intended to be a helpful source for class discussions as well.
VL  - 11
IS  - 1
ER  -

Copy | Download