Case Study : Amazon Prime Air

Drone Delivery

In recent years, there have been significant advances in distribution systems. Drones are one of the latest technologies employed for one-mile delivery. Companies such as Amazon, Walmart, Google, and Domino's are exploring drone delivery to unleash its full potential. We can notice a rapid growth in the adoption of drones among companies, so despite the science fiction vision of a sky crowded with drones, Is this the future of delivery?

A glimpse of the future

Imagine the following scenario: you pick up your phone with the intention of purchasing a desirable product online. It pops up on your screen as if it was waiting, especially for you. Filled with excitement, you add it to your cart and checkout. The moment you start wondering when your delivery man will come by and hand it to you, you receive a notification immediately. Dear customer, expect your package to arrive in 30 minutes! You’re glancing through the window while drinking your coffee, and your thoughts are wandering around. You notice a mysterious figure falling from the sky. It looks like a mini helicopter,but you are not sure what it is. It lands delicately on your front lawn, avoiding the surrounding trees. You open your door to find your package exactly where it should be. It sounds like science fiction, right? It is not. Drone delivery is the new marketing trend in the area of distribution.

Why Drones?

Distribution is a vital aspect of any business. It is the answer to the question: How will the product or service reach the customers?. We can explore Amazon’s ambitious plan for an innovative distribution system. Jeff Bezos established Amazon as an online bookstore. Eventually, Amazon grew bigger and went from selling books to EVERYTHING. Bezos summarized his philosophy in an interview with CNBC: "If there is one thing Amazon.com is about, it is its obsessive attention to the customer experience end-to-end". To put this philosophy into action, he asked himself: How can we deliver Packages to the customers quickly, safely, and effectively?. Utilizing drones sounded like a revolutionary solution. Amazon went ahead and designed delivery drones that can accommodate packages that weigh 5 pounds. Although it is not much, Amazon points out that 75% to 90% of orders are usually under this limit. The drones are led by GPS and utilize 3 different types of sensors to monitor their surroundings. The visual, thermal, and sonar sensors will enable the drone to detect when a person is close. Thus increasing its security and facilitating the delivery process in locations with poor infrastructure. This innovative method of delivery is a strong competitive advantage that can reduce costs and increase speed if executed properly. On the other hand, various concerns related to customers' privacy are raised. This technology will capture a large volume of geospatial data and video footage. It is necessary to ensure the protection of customer data and eventually gain people’s trust.

Swot Analysis

Swot is an acronym for strengths, weakness, opportunities, and threats. It is an assessment tool for these vital aspects of any business. We can use this simple yet effective technique to get a better understanding of the advantages and disadvantages of drone delivery.

Future Potential

In conclusion, drone delivery is a competitive advantage for businesses that seek to revolutionize their delivery methods. According to Statista, by 2030, the global drone market will generate approximately 4.4 billion dollars in revenue. However, it is not a perfect solution for all problems relevant to delivering services. It does promise a faster and more cost-effective method, but businesses must consider its limitations.