Zappos Case Study: Exploring Competitive Advantages and Strategies

This report presents an analysis of Zappos, focusing on its competitive advantages and business strategies. It explores how Zappos differentiates itself through customer service, a strong organizational culture, and employee empowerment. The report highlights key factors such as responsive customer service, a robust capital structure, and a culture of teamwork. It also discusses the sustainability of these advantages in a competitive market, suggesting areas for improvement, such as leveraging advanced search algorithms to enhance the customer experience. The report references key sources to support its findings, providing a comprehensive overview of Zappos' success and challenges.

RUNNING HEAD: ZAPPO 1
Zappo
Answer 1:
Zappo, the online shoe and cloth selling retailer has made tremendous success due to its values
embedded in the culture. The company treats everyone like a family. Employees are allowed to
enjoy and have fun. Managers trust their employees to make decision. The company only hire
those candidates who fit with the culture and are capable of contributing to organizational
success. Employees are allowed to share their ideas with other members of the company to do
better in their jobs. Thus, sharing, teamwork, trust, fun and empowerment allows company to
optimize the performance of its employees and to bring best results (Charles, 2014).
Answer 2
Zappo has differentiated itself from its competitors, through following strategies:
 The company is persistent in its efforts to attain height success and to satisfy its
customers
 The company has a call center where representatives are always available to answer the
queries of customers
 Customers are served with best experience
 Needs of customers are held as top most priority (Gallo, 2019).
Answer no 3:
The main sources of competitive advantage for the company include the customer service, the
capital; structure, culture and employees. Customers’ service is highly responsive and open for
24/7. The capital structure allows the company to raise ample cash to maintain a streamline

RUNNING HEAD: ZAPPO 2
delivery of goods to customers. Employees are dedicated to their work. The culture of teamwork
and sharing contributes to the overall success.
Answer no 4
Zappos competitive advantage tends to be less sustainable when it comes to highly competitive
market. For instance, other online stores have introduced various algorithms to optimize the
search experiences. Zappo can do the same to stay ahead of its competitors.
References
Charles. (2014, June 24). Recipe For Success – 5 Things Zappos Does Differently. Retrieved
from https://predictableprofits.com/recipe-success-5-things-zappos-differently/
Gallo, C. (2019). Zappos Culture: A Corporate Culture Success Story. Retrieved from
https://hiring.monster.com/hr/hr-best-practices/workforce-management/improving-
employee-relations/corporate-culture-zappos.aspx