Amazon’s Drone Delivery Strategic Plan

Abstract

With its ground-breaking service, which uses completely electric drones to deliver goods to customers in less than an hour, Amazon's strategy for drone delivery is poised to transform the logistics sector. This research goes deeply into Amazon's strategy plan, examining its possible influence, practical concerns, and consumer satisfaction consequences. Amazon wants to reinvent the delivery process and provide its customers with unmatched speed and convenience by using fully electric drones. The capacity to finish deliveries in one hour has the power to redefine customer expectations and establish a new standard for effectiveness in the e-commerce industry. Additionally, the use of totally electric drones is consistent with Amazon's commitment to sustainability, demonstrating its desire to lower carbon emissions and support eco-friendly activities. However, putting such a large-scale strategy into action has its share of difficulties. It is important to successfully negotiate the legal and regulatory issues related to drone operations, such as airspace restrictions and security issues. Additionally, controlling a fleet of drones requires handling logistical challenges including planning, route optimization, and maintenance. This report critically evaluates Amazon's drone delivery strategy and offers insights into the service's transformational potential. It gives insight into the possible influence on the logistics business and the general customer experience by examining the opportunities and difficulties connected with this innovative approach. A new age of quick, effective, and environmentally friendly logistics may be ushered in by Amazon's strategy for drone delivery, which has the potential to transform how goods are transported.

               Keywords: strategic plan, drone delivery, logistics industry

Introduction

            Jeff Bezos founded the multinational technology company Amazon in 1994. It began as an online book marketplace but quickly broadened its selection to cover a wide range of goods, including food, electronics, clothing, and home goods. E-commerce, cloud computing, digital streaming, and artificial intelligence are just a few of the sectors in which Amazon works. It is now among the biggest and most powerful corporations in the world (Yaser, 2022).

            Amazon's 2013 strategy plan for drone delivery uses cutting-edge drone technology to transform the delivery process. The main goal of the concept is to deploy completely electric drones to deliver products in less than 60 minutes, right to consumers' doorsteps. This innovative service, known as Amazon Prime Air, marks a crucial turning point in the company's attempts to improve customer satisfaction, speed up delivery times, and further establish its position as the market leader in e-commerce.

            Although Amazon has made significant strides in creating and testing its drone delivery service, this initiative has not yet been completely realized on a large scale. To provide consumers with unmatched convenience and quick order fulfillment, Amazon is committed to innovation and continual development in its logistics operations, as shown by its strategic plan (Jung & Hyunsu, 2017).

Mission

            Amazon’s mission statement generally emphasizes becoming the most customer-centric business and providing excellent customer experiences. However, the business has stated that it is committed to creating drone technology for deliveries. Amazon has also highlighted the potential advantages of drone delivery, such as shortened delivery times and improved convenience. The business has also brought up the issue of the environment, emphasizing the usage of electric drones to reduce carbon emissions and promote sustainability (Riololaw, 2013). The project's missions are listed below:

• With Amazon Prime Air, consumers may get shipments weighing less than 5 pounds in less than 60 minutes. Currently, the service is being tested in College Station, Texas, and Lockeford, California (Amazon, 2022).
• Customers will not feel at ease accepting drone deliveries unless they are certain that the system is secure and dependable. Although it is difficult to completely remove all dangers associated with flying, Amazon is using a tried-and-true aerospace method to include safety into its system (Amazon, 2022).
• To design the fly paths, establish safe separations between their aircraft and other aircraft in the region, and assure compliance with all aviation rules, Amazon is developing an automated drone-management system (Amazon, 2022).
• One significant engineering problem that their team is focusing on is lowering the noise profile of drones. Drones soar hundreds of feet above ground level, well above people and buildings. The drones, even when they descend to carry things, are often quieter than a variety of sounds you may typically hear in a regular neighborhood (Lee, 2023).
• Amazon drone delivery will allow for significantly quicker deliveries to clients, perhaps boosting overall safety and network efficiency (Amazon, 2022).

Vision Statement

• According to Amazon's vision statement, the firm wants to be the most customer-centric organization on Earth, where customers can find and discover anything they might want to buy online and strives to offer its customers the lowest prices (FourWeekMBA, 2023).
• Amazon drone delivery will allow for significantly quicker customer deliveries, perhaps improving overall safety and network efficiency (Amazon, 2022).
• They are aware that only if the system is trustworthy and safe will their consumers feel at ease receiving drone deliveries. Although it is difficult to completely remove all flight-related dangers, they are using a tried-and-true aerospace technique to include safety into their system (Amazon, 2022).
• One significant engineering difficulty that their team is focusing on is lowering the drones' noise profile. Their drones soar hundreds of feet above ground level, well above people and buildings. The drones, even when they descend to carry things, are often quieter than a variety of sounds you may typically hear in a regular neighborhood (Amazon, 2022).
• Amazon aspires to be the world's most customer-focused business, best employer, and safest workplace (Gregory, 2023).

Values Statement

• Amazon is driven by four guiding principles: obsessing about the customer rather than the competition, being passionate about creation, being dedicated to operational excellence, and being long-sighted (Business Mavericks, 2021).
• Customer Focus: To maintain customer satisfaction at the center of its drone delivery operation, Amazon offers remarkable client experiences (Rejeb et al., 2023).
• Safety: The security of its customers and communities is important to Amazon. It is dedicated to creating and putting into place strict safety procedures in the construction and use of its drones (Rejeb et al., 2023).
• Innovation: To increase efficiency and effectiveness, Amazon embraces innovation and works to constantly improve its drone technology and delivery procedures (Rejeb et al., 2023).
• Sustainability: Amazon is devoted to encouraging sustainable behaviors and lowering carbon emissions. Its delivery concept uses entirely electric drones, which is in line with its environmental ideals (Rejeb et al., 2023).
• Invention: In its drone delivery project, Amazon promotes a culture of creativity and inventive problem-solving, encouraging a spirit of innovation and continual development (Tokosh & Chen, 2022).
• Simplicity: Amazon's drone delivery effort places high importance on simplicity and aims to make the delivery procedure as efficient and easy for customers as feasible (Tokosh & Chen, 2022).
• Frugality: Amazon places a strong emphasis on being cheap in its drone delivery effort, looking for ways to save costs without sacrificing quality or safety (Rejeb et al., 2023).

Goals

• According to Amazon Prime Air vice president David Carbon, the business aims to deliver 500 million products annually by drones in urban areas by the end of the decade (Baker, 2022).
• Earlier this year, Amazon said that residents in College Station, Texas, and Lockeford, California, will be among the first to get Prime Air deliveries (Amazon, 2022).
• The MK30, the company's newest delivery drone, is now available on Amazon. By comparison to the MK27-2, which will be making deliveries in Lockeford and College Station, this drone, which is scheduled to enter operation in 2024, will be smaller and lighter. With the MK30, consumers will be able to pick drone delivery more frequently because of its enhanced range, increased temperature tolerance, safety-critical features, and new ability to fly in moderate rain (Amazon, 2022).
• Amazon is aware that only if users are confident in the system's security and dependability will they feel comfortable accepting drone deliveries. The drones can respond autonomously and safely to novel and unexpected circumstances. Drones will be able to operate at larger distances while consistently and safely avoiding other aircraft, people, pets, and objects thanks to a sophisticated and industry-leading sense-and-avoid technology developed by Amazon. Additionally, Amazon respects the privacy of its customers and has built its technology so that it does not collect or keep any data that is not essential to deliver its service (Amazon, 2022).

Objectives

• To develop completely electric drones that can travel 15 miles and deliver small products to clients in under 30 minutes (Amazon, 2022).
• To use specially engineered propellers to minimize the drones' sound profile by 25% (Wilke, 2019).
• To encourage consumers to pick drone delivery more frequently by enhancing the drones' range, temperature tolerance, weather resistance, and other vital safety aspects (Wilke, 2019).
• To grow the drone delivery service to satisfy client demands across all scenarios and locations (Wilke, 2019).

Strategies

• To employ an automated drone-management system, a sophisticated sense-and-avoid system, and a tried-and-true aeronautical strategy to guarantee the safety and dependability of the drones (Amazon, 2022).
• To use Amazon's enormous regional facilities, automated merchandisers, and Prime membership program to provide clients with quick and easy delivery services (Snapp, 2017).
• To launch and retrieve drones using a blimp-based method, which would reduce the drone's energy use and noise pollution (Wunker, 2013).
• To work together with local officials and the Federal Aviation Administration to get approval and input for the drone delivery service (Amazon, 2022).
• To create and iterate on the drones' features and design to enhance their functionality, performance, and user experience (Amazon, 2022).

Overall Analysis of the Strategic Plan

            Amazon's ambition to use drones for delivery is a component of its goal to become the most customer-focused corporation on Earth, where consumers can receive everything, they want online in less than an hour using secure, dependable, and environmentally friendly drones.

            The effort is in accordance with Amazon's objective to be the world's most customer-focused organization, where consumers can search and discover everything they would want to buy online and strives to provide customers with the best pricing.

            Amazon's values of customer focus, innovation, safety, sustainability, ownership, excellence, long-term thinking, invention, simplicity, and frugalness are what motivate the initiative (Amazon, 2022).

Recommendations for Improving the Strategic Plan

• By giving sufficient training, tools, feedback, and recognition, it will be possible to increase staff productivity, morale, and retention. (Roth, 2022).
• To improve the drones' safety and dependability via rigorous testing, reporting, and investigations into any events or problems (Digital Commerce 360, 2022).
• To address the concerns of consumers and communities regarding noise and privacy by creating quieter propellers, respecting property lines, and reducing data gathering (Digital Commerce 360, 2022).
• To increase the number of customers and market share by providing more delivery alternatives, rewards, and advantages for deciding to use drone delivery (Roth, 2022).
• To work together with various stakeholders, including regulators, industry partners, local government officials, and researchers, to enhance drone infrastructure and technology. (Roth, 2022).

Conclusion

           In conclusion, by deploying completely electric drones for quick delivery within an hour, Amazon's strategy for drone delivery has the potential to change the logistics industry. This innovative strategy strives to redefine customer expectations and set a new benchmark for e-commerce effectiveness. Electric drone use is consistent with Amazon's commitment to sustainability, lowering carbon emissions, and encouraging environmentally favorable behaviors. However, putting this expansive plan into action faces difficulties, including resolving legal and regulatory hurdles, dealing with airspace limitations, and maintaining security. To operate the drone fleet effectively, logistical challenges like route optimization and maintenance must be overcome. It illustrates the benefits of quick and ecologically friendly logistics by looking at opportunities and difficulties. Staff training, enhancing drone reliability and safety, addressing noise and privacy issues, increasing delivery alternatives, and working with stakeholders on infrastructural and technical developments are just a few of the recommendations. The goal of Amazon's strategic plan is to completely transform the logistics sector by providing customers with unrivaled convenience, speed, and sustainability. The strategy offers a lot of potential as it develops for the delivery environment and customer experience.

References

Amazon. (2022), Amazon reveals the new design for Prime Air’s delivery drone. Retrieved from https://www.aboutamazon.com/news/transportation/amazon-prime-air-delivery-drone-reveal-photos

Amazon. (2022), How Amazon is building its drone delivery system. Retrieved from https://www.aboutamazon.com/news/transportation/how-amazon-is-building-its-drone-delivery-system

Baker, S. (2022, November 28). Amazon has a new drone for 30-minute urban deliveries. Axios. https://www.axios.com/2022/11/28/amazon-has-a-new-drone-for-30-minute-urban-deliveries

Business Mavericks. (2021, August 14). Amazon Mission Statement, Vision Statement and Core Values. https://businessmavericks.org/amazon-mission-statement-vision-statement/

Digital Commerce 360. (2022, April 11). Amazon’s drone delivery plans struggle to take flight. Digital Commerce 360. https://www.digitalcommerce360.com/2022/04/11/amazons-drone-delivery-plans-struggle-to-take-flight/

Firewall Times. (2022, April 25). Amazon Mission Statement, Vision, and Values. https://firewalltimes.com/amazon-mission-statement-vision-values/

FourWeekMBA. (2023, May 23). Amazon Mission Statement and Vision Statement In A Nutshell. https://fourweekmba.com/amazon-vision-statement-mission-statement/

Gregory, L. (2023, June 26). Amazon’s Mission Statement & Vision Statement (An Analysis). Panmore Institute. https://panmore.com/amazon-com-inc-vision-statement-mission-statement-analysis

It’s Time For Business. (2021, September 27). Amazon Mission Statement Analysis and Vision. https://www.itstimeforbusiness.com/amazon/

Jung, S., & Hyunsu, K. (2017). Analysis of Amazon Prime Air UAV delivery service. Knowledge Information Technology and Systems, 12(2), 253-266. https://doi.org/10.34163/jkits.2017.12.2.005

Lee, D. (2023, May 18). Amazon Prime Air has only done 100 drone deliveries. The Verge. https://www.theverge.com/2023/5/18/23728528/amazon-prime-air-drone-delivery-jeff-bezos

Riololaw. (2013). Amazon Prime Air. Retrieved July 5, 2023, from https://riololaw.com/amazon-prime-air/

Roth, E. (2022, April 11). Amazon is still struggling to make drone deliveries work. The Verge. https://www.theverge.com/2022/4/11/23020549/amazon-struggling-drone-deliveries-prime-air-bezos

Rejeb, A., Rejeb, K., Simske, S. J., & Treiblmaier, H. (2023). Drones for supply chain management and logistics: a review and research agenda. International Journal of Logistics Research and Applications, 26(6), 708-731. https://doi.org/10.1080/13675567.2021.1981273

Snapp, S. (2017, January 5). How to Best Understand Amazon Drone Strategy. https://www.brightworkresearch.com/best-understand-amazon-drone-strategy/

Tokosh, J., & Chen, X. (2022). Delivery by drone: Estimating market potential and access to consumers from existing Amazon infrastructure. Papers in Applied Geography, 8(4), 414-433. https://doi.org/10.1080/23754931.2022.2105167

Wilke, J. (2019, June 5). A drone program taking flight. About Amazon. https://www.aboutamazon.com/news/transportation/a-drone-program-taking-flight

Wunker, S. (2013, December 2). Amazon’s Strategy Behind the Drone Attack. Forbes. https://www.forbes.com/sites/stephenwunker/2013/12/02/amazons-strategy-behind-the-drone-attack-new-markets-entrenched-advantages/?sh=1cabb84d93b8

Yaser, K. (2022). Definition Amazon? Retrieved from https://www.techtarget.com/whatis/definition/Amazon