Amazon's Drone Delivery System: A Revolutionary Change in E-commerce Industry

Running Head: Digital Media Entrepreneur
Amazon Inc.
Digital Media Entrepreneur

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ASSESSMENT ONE
NAME:
STUDENT NUMBER:
PART 1: PROJECT PROPOSAL
INTRODUCTION
Globalisation is the integration of people, business entities and governments of different
bodies. Due to globalisation, various industries, sectors and companies have grown up.
Globalisation has widened the boundaries for business organizations in order to expand their
functionalities from domestic to international level. With respect to this, internet is another
platform which has brought drastic changes in the functionalities of business. Along with the
businesses, internet has also set up its effective place in the individual’s lives and today on an
average, an individual uses internet for approximately 5 hours in a day. With the increasing
number of internet users, opportunities for e-commerce companies is also increasing and in
relation to this, some of the giant players of this industry like Amazon, Alibaba, eBay, etc.
are offering millions of products and services over internet. Introduction of e-commerce
companies have been a drastic change in the whole business industry because large part of
the customer segments have preferred online shopping over offline shopping (Hong, Kuby &
Murray, 2017).
Amazon which is one of the largest e-commerce companies has invented various new and
innovative services for satisfying its target audience's demands and wants. Amazon sells
millions of products over its website and to retain customers' interest as well as to build
customers' engagement with the company, they always seek for innovative and creative
measures. Recently, Amazon's CEO has announced the introduction of "drone delivery"
system in order to speed up their delivery services. With the help of drone delivery,
customers will be able to get their orders within 30 minutes. Apart from this, the organization
is already offering one day, two-day delivery options which could be selected by the
customers while placing their orders as per their requirements (Amazon Inc., 2018).
Introduction of drone delivery will be another revolutionary change in the e-commerce
industry and with the help of this innovative idea, the organization would be able to attract
various other customer segments through which organizational performance would be
enhanced in terms of increasing revenues, profitability as well as huge customer base. Drone

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delivery will not only bring revolutionary change in the organizational functionalities, it will
also bring changes to the whole e-commerce industry because other companies are still
practicing on common delivery schedules. The new invention will help Amazon to acquire a
large part of the target market through which its market share in the e-commerce industry will
be enhanced. Along with this, organization would easily be able to approach to those market
segments in which company is not yet present. Thus, brand value for the organization will be
enhanced which will ultimately help the organization to acquire the market share of Alibaba
Group which stands on the leading position in the worldwide e-commerce industry (Amazon
Inc., 2018).
BACKGROUND INFORMATION
Amazon Inc. is a behemoth player of e-commerce industry and a major reason behind
company's success and growth is its CEO's innovative thinking and creative leadership style.
The company is selling millions of products over its websites and company has separate retail
websites for United States, United Kingdom, France, Ireland, Italy, Germany, Netherlands,
Spain, India, China, Japan, Mexico, etc. Apart from this, the organization recently launched
Dutch, Polish and Turkish languages have also been introduced. The organization also offers
international shopping in order to satisfy consumer's wants and demands. With regards to
this, currently, the organization is offering international shopping only for certain products
whereas, after the introduction of drone delivery program, various other products will also be
offered under international shopping (Silver, 2016).
Jeff Bezos, CEO of Amazon has adopted three elements for organizational success:
• Consistent learning;
• Sustained growth; and
• Overall development.
With regards to these elements, the organization is constantly focusing on introduction of
new products as well as services in order to match up with the business trends, compete with
the offline business industry as well as to match up with the dynamic consumer's demands
and wants. In relation to this, the organization always tries to bring new and unique products
and services in order to grab the attention of new customer segments as well as to retain
existing as well as potential customer segments. Amongst their revolutionary innovations,
organization has introduced various options in their delivery program in order to deliver the

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products and services to the consumers on a quick basis. The company introduced Amazon
Prime services with the motive of introducing fast delivery options. Amazon is currently
offering one day, two day and normal delivery options and for these fast delivery options,
consumers are required to pay certain extra amount whereas subscribers of Amazon Prime
get these fast delivery options at no cost as they are required to pay a fixed amount to avail
the services (Hickey, 2013).
Initially, Jeff Bezos revealed plans for Amazon Prime Air in an interview on 1st December
2013. The primary objective of this delivery system is to deliver the package to the customer
within 30-45 minutes from the time of placing the order. After taking permissions from
various authorities, in July 2016. Organization announced the partnership with the UK Civil
Aviation Authority to test some of the technologies which will fit best with the Amazon
Prime Air in the coming future (Amazon Inc., 2018).
In relation with improving their delivery services, organization is developing a future
delivery system which is safe, environmentally sound, and enhances the services organization
is already providing to millions of its consumers. Amazon is investing the huge part of their
earnings into their research and development laboratories for successful launching of their
new innovation i.e. Amazon Prime Air. The primary focus of the organization is to
introducing Amazon Prime Air as a next-generation delivery system. In this regard, the
organization is working to convert their vision into reality. Although this innovation is a bit
unique as well as difficult too organizational vision is to launch the Prime Air services and as
today, vehicles running on the road seem to be normal, in future, Amazon's drones in the air
will also look normal. This service is currently under processing and it is going through beta
testing in the United States, Austria, United Kingdom, Israel, and France. In the initial stage,
Amazon Prime Air will deliver only those packages which weigh up to 5 pounds at a
minimum distance of 10 miles or more and Amazon's 90% products are of this weight only
(Silver, 2016).
OBJECTIVES
On December 1, 2013, Amazon's CEO Jeff Bezos revealed plans for the introduction of
Amazon Prime Air services in an interview. Amazon Prime Air was planned to use a
multirotor Miniature Unmanned Air Vehicle (Miniature UAV) technology in order to
autonomously fly individual packages to customers within 30 minutes of ordering. In order to