Zappos Case Study

Asos’ has widely selection of products that are considered to be consumer products, classified as shopping products, due to their higher prices, selective distribution, less frequent purchases and more shopping effort. Their core product is the purchase of esteem as well as respect and recognition , in forms of clothing in a wide variety in an online hub, right at your fingertips. This makes them gain brand equity in form of differentiation, as Asos has the largest product assortment of different brands online . Asos also does a great job by gaining brand equity by offering relevant services in their augmented product and service mix in form of free

Over the last decade, there was an increasing number of bricks-and-mortar retailers shifting onto the web. But now the tables have turned and it is interesting to note that there is a trend that pure play online retailers start to open up physical stores to put in valuable face time with their customers. Bonobos, a menswear brand built on the idea of better-fitting pants, was founded in 2007 on the internet. It was among the pioneers when it extended offline strategy, launching the Bonobos Guide Shop in 2011 to bring personalized, one-to-one service to those wanting to experience the brand in person, and later made its apparel available to customers at Nordstrom. (———>Anonymous 2012, Bonobos and Nordstrom Announce Partnership:

All parts of the brand must be consistent, particularly brick and mortar stores and online platforms. This is of high importance because of the rise in online shopping. According to Nick Hodson and Marco Kesteloo, two members of PwC’s Strategy& group, three fourths of retail sales growth has occurred through online channels. About 15% of retailers’ total sales are occurring online. This steady online growth is giving back new life to the physical stores of some retailers (Hodson). For example, a shopper on ASOS finds a blouse that she likes online but she is not sure of her size. She goes to a brick and mortar store that sells the same item and buys it there. Then later she may decide she

The new technological advances have made it easier for even small time stores to come out with some unique idea like designing your shoe online. For an example, Customix offers 3 billion

Question 1: What are Zappos’ supply chain related core competencies and sources of competitive advantage? How sustainable are they? What role does corporate culture play in these questions?

This allows the employees to give a faster and more accurate service. After the customer begins trying on shoes, the associate goes back to check on the customer and delivers the critical actions for the try-on stage. This stage is very important because the company has determined that sixty-four percent of customers who try on shoes make a purchase. The associate begins by complementing their selection. This can change the sixty-six percent to eighty-eight after a customer receives follow-up. The associate then offers the customer a second style or a matching accessory to increase the units per transaction. Once the customer picks the products they want to buy, the associate offers to take the shoes to the registers which are at the front of the store, where the Check-out stage begins. In the beginning of the transaction a customer is asked for personal information such as name, address, and email address that is input in to the registration system in the support process. This data is stored and used for marketing purposes and comes up every time the customer shops in the store, allowing for a more personalized service. The cashier then proceeds by checking that the correct shoe mates are taken. This is done verbally to reassure that the customer is taking what they want and to avoid any returns. Underneath the registers, are shoelaces and shoe care merchandise for the customer to purchase at last minute. In the Check-out stage, these items are offered by the cashier

As a typical female, I love to go shoe shopping and, to my poor husband’s horror, I have well over 50 pairs of shoes—ranging from ultra-cute pumps, to Sperry boat shoes, to my everyday Keds. I have shopped many places for my collection—from DSW to Wal-Mart; however, my most favorite place to buy shoes is Zappos. I purchase so many shoes there that I am one of their preferred customers, which means I receive special offers and unpublished discounts. Since I have been a loyal customer of Zappos for over 10 years, I have decided to research their CEO—Tony Hsieh.

4. Zappos’s new model that is based on loyalty and relationship marketing made the company make 1 billion $ in revenue in 2009. Zappos’s new strategy of offering not just shoes but as well introducing clothing and apparel to the site is definitely a great move knowing that the apparel market of is 4 times the size of the footwear market Zappos’s believe that in order to make its customers happy they should first make their employees happy which they are succeeding at making Zappos among the best 100 company to work for (Adriana,

“Zappos has a unique culture which stresses the following ; Delivering WOW through service, Embracing and driving change, Creating fun and a little weirdness, Being adventurous, creative and open-minded, Pursuing growth and learning, Building open and honest relationships with communication, Building a positive team and family spirit, Doing more with less, Being passionate and determined and Being humble.” [3]

Zappos, Inc has been on the Fortune 500 “Best Company to Work for” list several consecutive years in a row. Zappos has also realized sales growth of one million to several billion in a short period (2014).Nick Swinmurn founded Zappos in San Francisco, California in 1999. Mr. Swinmurn had a vision that there could be a more efficient and selective alternative to shopping for shoes and felt that the internet was the solution to in-person shoe shopping restrictions. Just a year later, Tony Hsieh, a Harvard University graduate, who initially served as an investor, joined the organization as Co-CEO in 2000. He immediately began working on developing the core values of the company and shifted his focus on the culture of the organization and making the workplace enjoyable for every employee. In the evaluation of the company’s global culture it was decided to relocate the company to Las Vegas, Nevada in 2004.

Zappos has the capabilities to offer a variety of cyber selections such as unthinkable items of shoes, apparel, accessories, and home products, with every shopper dream of free shipping and full refunds within five business days of your returns date. Zappos willingness to think outside of the box has made a name for the corporations by employing a phenomenal innovative and creative diverse group of visionary individuals whom have made a cutting edge cyber industry. Zappos corporation make a personally commitment to serve the customers and employees has made them one of the most desirable places to work national and internationally that rewards with internal promotions. Unlike other corporations Zappos have been able to maintain its unique culture and continues efforts in developing innovative categories such as clothing and merchandise markets.

The process of shopping for a shoe, getting detailed information, and purchasing it was quick and reliable. Several customers enjoy the ease of access to a host of fashionable and trendy products specifically catered to their size, taste, and quality. Furthermore, Zappos extended the company’s product mix after customer feedback and employee enthusiasm highlighted an opportunity to gain a bigger share of the U.S. consumer base. Zappos

There are three forms of sustainability, which Zappos relies on as a competitive advantage economic (profit), social (people) and environmental. According to the text, this is the triple bottom line, which suggests companies first management if traditional profit/loss, second the management of the company’s social responsibility, and finally the management of its environmental responsibility (Wheelen T., 2015, p.10). Hsieh management concepts use sustainability all areas of a corporation, to create balance regulation and support and protect the companies brand.

An additional method Zara utilizes to ensure the right product is produced is to constantly monitoring the sells at every store in real time through the use of computers. Sells managers are the individuals that play out this strategy. When the clothing sells well or does not sell well, they can quickly let the designers know to swiftly create new designs (“Case 3-4. Continued Growth for Zara and Inditex”, 2013). However, the competition is changing their strategies in an attempt to successfully compete with Zara. The methods that Zara has implemented to ensure fast fashion is truly fast has pressured the competition into reducing their lead times on stocking their stores (Hayes & Jones, 2006).

This essay will include an opinion of what a good recruitment policy Zappos has. If this policy is a good one for its employees and how it will impact them. The original idea for Zappos was to offer the biggest and best selection of shoes. Normally, this online vender would just have a few selections of shoes but, unfortunately, their strategy didn’t pan out the way it was intendent to. Many retailers both online and offline, where consumers can shop for shoes. Tony Hsieh, Chief Executive Officer for Zappos changed the mission statement to offer the best customer service of any shoe retailer. By changing their mission, Hsieh acquired the attention of many customers. Wanting to capture the essensece of what makes a company great, Hsieh maintained a self-motivated, fulfilling company philosophy. The company would be known as a great place to work, and thus develop loyal customers who would deliver the revenue needed to satisfy shareholders.