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Decision-Making and Pricing Strategies at Amazon.com Inc. Requirements: Assess Amazon.com Inc.'s decision to expand its fulfillment network into new regions by conducting a cost-benefit analysis.

Decision-Making and Pricing Strategies at Amazon.com Inc.

Requirements:

  1. Assess Amazon.com Inc.'s decision to expand its fulfillment network into new regions by conducting a cost-benefit analysis.
  2. Calculate the incremental costs associated with setting up fulfillment centers in North America and Europe.

Region

Incremental Costs ($)

North America

20,000,000

Europe

15,000,000

  1. Analyze the impact of economies of scale on fulfillment costs and shipping expenses.
  2. Recommend pricing strategies to optimize profitability while maintaining competitive advantage in the global e-commerce market.

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