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LS T4 Case 2 Q1
LS T4 Case 2 Q1
LS T4 Case 2 Q1
Answer:
The first problem that can be found in this case is Zalando is working to counter a
squeeze on profitability. Zalando has pumped in a huge amount of investment in order
to increase speed on delivery like Amazon. In this case, Zalando expected high return
on sales to cover back their investment.
The second problem is Zalando allows brands to use the logistics network it has built
for its own ecommerce business will make customers misunderstand that Zalando is a
company that focuses on third party logistics services since their logistics service was
more successful than their core business which is online retailing.
The third problem is that half of the orders are sent back to Zalando.