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Zappos.com and its Sustainable Competitive Advantage

   

Added on  2019-09-23

9 Pages2298 Words66 Views
Student Id:Name: Student Number: Word count: Name of the course: Tutor name: “ESSAY- STRATEGIC MANAGEMENT(A Case study on Zappos.com)1 | P a g e

Student Id:TABLEOF CONTENTSIntroduction..........................................................................................................................................3Zappos.com and its sustainable competitive advantage.......................................................................3About Zappos...................................................................................................................................3Sustainable business model of Zappos.............................................................................................4sources of competitive advantage.....................................................................................................5Conclusion............................................................................................................................................7Works Cited..........................................................................................................................................82 | P a g e

Student Id:INTRODUCTIONThis study focusses on Zappos.com and its sustainability in the world of retailing business wherethey serve the ultimate competitive advantage among other retailers. A detailed analysis has beenmade on the behalf of Zappos about their business model and also the sources of competitiveadvantage in this study.ZAPPOS.COMANDITSSUSTAINABLECOMPETITIVEADVANTAGEABOUT ZAPPOSZappos.com is one of the main leading online stores of several products, where shoes are themain product and it is maintaining its business growth for a long period of time from theyear of 1999. Its beginning story is very interesting. Nick Swinmurn was while roaming inthe roadside of San Francisco searching for a pair of shoes; he found that one pair from astore was fit the size, but not the colour again another one was of right colour, but not thesize. This incident inspired him to start a new business which is the specialized of shoes andthat online retail shop was named as Shoesite.com [ CITATION Bai12 \l 16393 ].Afterwards, Nick renamed his online shoe store as Zappos.com against the word zapatos inSpanish and that means “shoes”.At present day, Zappos is not only selling the shoes but includes all the other essential andvaluable products , like clothing, kids sports, bag and backpacks, and other accessoriesthrough their online portal. As per the revenue, Zappos grew from $1.6 million in the year2000 to the amount of $1.64 billion in 2010 .i.e. within a decade Zappos increase almost1000 times in its business. This success is only for the 100% satisfaction of customer and itsinvestment by stakeholders. According to Tony Hsieh, CEO of Zappos, this company servesthe brand which is all about happiness whether there are customers or employees or even thevendors. In every place, Zappos has made its market with a great satisfaction to theconsumers for their special design and attractive nature of shoes [ CITATION Zap17 \l16393 ]. After beginning for some years, Zappos has struggled a lot where they just made the saleswithout any profit. At the end of 2002, Zappos made the sales of $32 million which was stillnot up to the mark of profit. After 2003, Zappos gave stress on their customer service andthus they had made possible of complete value chain which is from the order from thecustomer to the delivery of the product [ CITATION Ros10 \l 16393 ]. In 2004, Zappos setup a large pool of call centre employees with the support of 24 by 7 services from Las3 | P a g e

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