Amazon Prime Moves to 1-Day Free Shipping

Amazon Prime Moves to 1-Day Free Shipping

Amazon has announced its plan to shift Prime to free 1-day shipping in the near future. The current Prime shipping plan on most items is two days.

The rollout will be gradual, with certain areas receiving 1-day shipping sooner.

At present, Amazon Prime offers a variety of delivery speeds depending on your location and the product offered.  In order to accomplish 1-day shipping, Amazon plans to spend over $800 million in the second quarter of 2019.


Video Spotlight: Amazon is making 1-day shipping the new standard for Prime members


This post is based on the USA Today article, Amazon’s 1-Day Free-Shipping Plan Changes the Game Again, by Daniel B. Kline, April 29, 2019; and the YouTube video, Amazon is making 1-day shipping the new standard for Prime members, by CNBC Television, April 26, 2019. Image source: Image Source/Shannon Fagan

Discussion Questions:

1. Should Amazon make this change to 1-day free shipping?

Guidance: It is a definite game changer. Competitors such as Walmart and Target have been changing their operations to address Prime’s 2-day shipping.  Amazon has upped the expectation on delivery speed again.

2. What changes will Amazon need to make to accomplish 1-day Continue reading

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Model 3 Output Is Not Tesla’s Only Problem

Model 3 Output Is Not Tesla’s Only Problem

February 22, 2019

Since the fourth quarter of 2018, Tesla has successfully ramped up production of the Model 3 to gradually reduce the accumulated backorders for this “affordable” EV. However, as new owners experience minor accidents or mechanical problems that require service, too often the needed parts can take months to arrive.

Customer complaints are rising about these delays and flaws in newly delivered vehicles.  Elon Musk commented on the poor logistics of parts management, but the problem goes deeper since the number of service centers is limited to Tesla’s own network of 85 locations.

It is significant that Consumer Reports latest ratings position Tesla at 27th of 29 brands evaluated, a slide of six spots.


Video Spotlight: Top 2 most common supply chain problems


This post is based on the Breitbart article, Tesla is Failing to Service Its Customers’ Vehicles, by Lucas Nolan, February 11, 2019; the Wall Street Journal article, Tesla is Cranking Out Model 3s- Now It Has to Service Them, by Tim Higgins, February 10, 2019; and the YouTube video, Gerard Schouten shares top 2 most common supply chain problems, by Supply Chain Secrets, August 29, 2017. Image source: Shutterstock / Joey Continue reading

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GM: Tough Maneuvering in a Fast-Moving Market

GM: Tough Maneuvering in a Fast-Moving Market

GM’s announcement to close five plants has sparked a lot of criticism. How can a company bolstered by a taxpayer-funded bailout and generous tax cuts lay off 14,000 people? Is it betrayal or foresight?

CEO Mary T. Barra has justified the job cuts, citing slowing sales and changing markets. GM’s actions are easy to criticize, but compassionate solutions are difficult to come by.


Video Spotlight: GM’s planned layoffs


This post is based on the New York Times article, GM to Idle Plants and Cut Thousands of Jobs as Sales Slow, by N.E. Boudette, November 26, 2018; and the Time.com video on GM’s planned layoffs, by A. Abrams, November 29, 2018. Image source: Glow Images.

Discussion Questions:

1. Identify the specific elements in a SWOT analysis that may have triggered Ms. Barra’s decision to close several plants.

Guidance:

Threats

  • economy (higher interest rates, tariffs)
  • legal environment (push for higher minimum wages gaining momentum in several states)
  • competition (competitors’ investments in self-driving and electric cars)
  • markets (shifts in vehicle sales)

Opportunities

  • economy (low unemployment rates potentially easing employees’ reintegration into the workforce; financial boost with new of capital)
  • new technologies to facilitate the development of self-driving and electric cars Continue reading
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