Marketing Strategy Report: Zappos's Business Model

This report analyzes the marketing strategy of Zappos, a company known for its customer-centric approach. It begins by identifying Zappos's competitive advantages, which include its strong focus on customer service, corporate culture, and quick delivery. The report then assesses the sustainability of Zappos's success, arguing that its integration into its culture and employee emotional attachment make it a durable business model. Finally, it explores key strategic actions Zappos should take to ensure future growth and profitability, including refining business processes, emphasizing employee management, and adapting to the challenges of globalization. The report concludes that Zappos's dedication to its customers and employees remains its core strength.

Marketing Strategy
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Table of Contents
Introduction......................................................................................................................................3
1. What are the competitive advantages of Zappos? And what are the resources and capabilities
that contribute to its competitive advantages?.................................................................................3
2. Do you think that the success of Zappos is sustainable? Why or why not? Please provide
reasons to justify your response.......................................................................................................4
3. In order to sustain growth and profitability in the future, what key strategic actions should
Zappos take? (Note: strategic actions could be related to business processes, employee
management, marketing activities, and partnership management.).................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................5
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Introduction
With the rise of internet usage there have been more Long-distance purchases by customers
because the geography cool barriers have been removed. One of the initial businesses which took
advantage of this is Zappos.com (Wedreambusiness.org, 2017).
1. What are the competitive advantages of Zappos? And what are the resources and
capabilities that contribute to its competitive advantages?
There have been based on ten core values which build the business model and culture of
samples. These core values are the basis of the activities of the business and therefore the
competitive advantage can be seen in terms of high level of services which bring automatic
marketing for the business. The competitive advantages of this business are:
- Capital raising for providing best to the clients,
- Core values of the business,
- Its corporate culture,
- Quick and free delivery,
- 24 x 7 call centre for client support,
- Relationship building by the customer service agents,
- Contended employees with a great working environment (Harvard Business Review,
2017).
The business has its toll free number written on the top of the website and people are always
invited to interact with the business. There is an open this to talk with 24 hours of support, which
generally lacks in the competitors or any other typical brand. The business model of Zappos is
customer focused and it also makes use of social media to interact with the clients and respond to
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their issues. The customer service agents do not have any prescription and they are free to make
decisions so that they can “wow “clients. So it can be said that the working environment
corporate culture and ability of customer servicing agent to develop relation with the customers
have brought a competitive advantage to Zappos (The Balance, 2017).
2. Do you think that the success of Zappos is sustainable? Why or why not? Please
provide reasons to justify your response.
Yes, in my belief the success of Zappos is sustainable because this is an organisation which is
integrated into culture and the workers are also emotionally attached to it therefore the business
cannot fall quickly and easily. This is the strategy that has been designed for the success of the
company where people try to connect, replicate and consider each others’ emotions which is
mutual connector. The values of Zappos have been created in such a manner that they bring
positive culture and there is an emotional connection among the staff members, management and
clients.
3. In order to sustain growth and profitability in the future, what key strategic actions
should Zappos take? (Note: strategic actions could be related to business processes,
employee management, marketing activities, and partnership management.)
The strategy that has to be taken by Zappos would be with respect to the business processes
because lots of customers were confused on Zappos uniting with Amazon. It was a big decision
because the business cherished each employee and there had to be a layoff of 8% of highly
valued workers. So the processes have to be for boosting transparency and reorganizing
operations. Even though the intentions are good but the holacracy cannot be applied on 1500
workers, with an ease (Digital Spark Marketing, 2017). For sustaining in the competitive world
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and for sustaining in globalization, it would need to keep its focus on its human resources which
can help in meeting these challenges. Therefore, Zappos has to continue recruiting right workers
which promote the business for values and also our innovative in resolving issues so that
company can grow in sustainable and ethical way.
Conclusion
The distinctive features and structure of Zappos is based on the Devotion of business towards its
clients and its employees. The strategy of Zappos is to assure clients with great experience when
they shop on the online store.
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References
Digital Spark Marketing. (2017). 10 Examples of How Zappos Marketing Strategy Makes a
Difference. [online] Available at: https://digitalsparkmarketing.com/zappos-marketing-strategy/
[Accessed 10 Oct. 2017].
Harvard Business Review. (2017). Zappos and the Connection Between Structure and Strategy.
[online] Available at: https://hbr.org/2015/06/zappos-and-the-connection-between-structure-and-
strategy [Accessed 10 Oct. 2017].
The Balance. (2017). How Zappos Uses Technology and Operations to be Wildly Successful.
[online] Available at: https://www.thebalance.com/zappos-uses-technology-and-operations-to-
be-successful-2533530 [Accessed 10 Oct. 2017].
Wedreambusiness.org. (2017). Zappos - We Dream Business. [online] Available at:
http://wedreambusiness.org/Zappos.html [Accessed 10 Oct. 2017].
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