This case analysis aims at discussing the factors involved in the implementation of the Amazon Prime Air project to investigate whether delivery drones can possibly be a disruptive technology. Indeed, Amazon has the potential to be a huge success once it finally launches its operations as it can develop a strong competitive advantage.
All of this leads to a launch that has been postponed for years, questioning the viability of the project. However, the company faces diverse challenges endangering its project, including ever changing regulations, skepticism from the customers, and safety concerns.
The idea of delivery with the help of drones represents a true innovation in the e-commerce business, fastening the delivery service in a way that was almost unimaginable a few years back. Only one aircraft in each sector will be airborne at any time. On June 13, 2022, Amazon announced its plans to make its first drone deliveries in Lockeford, California. According to Amazon, the Lockeford drone delivery center is divided into four sectors, with each sector featuring one takeoff and landing pad with its own dedicated operating area that can support up to five flights per hour. According to a survey by McKinsey, 84% of professionals feel that future success is dependent on continuous innovation in order to gain competitive advantage in the industry and respond to the competition. In a world where most businesses are innovating or digitally transitioning, neglecting to experiment puts businesses at a disadvantage by making them increasingly irrelevant to the consumers, resistant to change, and unable to compete with larger and more efficient rivals.
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