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ANSWERN THE BELOW QUESTIONS Amazon is encouraging employee spinouts. They are offering employees $10,000 plus 3 months salary to quit and form entrepreneurial ventures in
ANSWERN THE BELOW QUESTIONS
Amazon is encouraging employee spinouts. They are offering employees $10,000 plus 3 months salary to quit and form entrepreneurial ventures in their Delivery Service Partner Program (DSP). Since the program started, Amazon has shifted 30-50% of its delivery needs away from big vendors (USPS, UPS, FedEx, etc.) in favor of internal and small external service providers.
- Competitive dynamics: How will players respond? (FedEx has now declined to serve Amazon)
- Internal analysis: How might this move enhance Amazon's competitive advantage? Do the entrepreneurial ventures enjoy any competitive advantages?
- Entrepreneurship: Is the opportunity for employee entrepreneurs attractive? (consider two key sources of uncertainty: 1) how much help will Amazon provide on an ongoing basis? and 2) how smoothly will their implementation go?)
- Corporate: Should Amazon vertically integrate into the delivery business? How does their tapered integration affect the market?
- Alliances: How do the collaborative relationships between Amazon and its partners differ between big and small partners?
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