In 2013, facing rapid growth at Chewy.com, CEO Ryan Cohen had to decide whether to maintain a struggling relationship with a third-party logistics provider or invest in an in-house fulfillment network. Choosing the latter, Cohen successfully positioned Chewy as a leading e-commerce company in the U.S. This decision reflects a broader entrepreneurial challenge of balancing logistical outsourcing with in-house operational capabilities. Professor Jeffrey Rayport's case study on this pivot emphasizes the significant impact of Cohen's choice on Chewy's explosive growth trajectory and success in the competitive e-commerce landscape.
Ryan Cohen, CEO of Chewy, faced a critical decision in 2013: to slow growth or invest in building an efficient fulfillment network to sustain Chewy's rapid growth.
The dilemma presents a common challenge for entrepreneurs: choosing between outsourcing logistics to third-party providers or investing in in-house capabilities to support expansion.
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