Following the market leader:
Senior supply chain managers understand the importance of avoiding a low-cost leadership strategy, or one that shifts them away from niche, differentiated, and high-yielding life-time customers and, instead, towards pricing and promotion schemes, which often result in firms merging or partnering so as to reduce the number of operators along the logistics pipeline.
In other words, and in considering Amazon’s near monopolization of the small, on-time delivery network that sees packages land on doorsteps just hours after confirming a purchase on the web, legacy firms are trying to copy this market leader to the detriment of their brand value or outright financial solvency.
Copycat strategy is certainly one option in competing with the Amazon gorilla, but so to is following this leader not by merely adopting their tactics, techniques, and procedures so much as their operating principles.
The senior management team and DMU, therefore, should consider setting up fringe think-tank units within their firm or between their brokers, agents, and distributors in order to maintain margins while simultaneously seeking out what could be next in a particular operational region.