Customer Service Representatives
Zappos Case Study
Executive Summary
This case study analysis is based on the 2009 case study from Stanford Graduate School of Business titled Zappos.com: Developing a supply chain to deliver WOW! It begins with the general overview of the background, philosophies and current problems faced by Zappos. This is followed by a hierarchal ranking of the four major presenting problems for the company, which are: maintaining the “wow” image without overspending, inventory management/distribution problems, transportation efficiency problems and customer behavior problems.
Each of these problems is addressed in more detail in the discussion section and the recommendations section at the end of the analysis. Prior to the conclusion and recommendations section, a list of possible strategic alternatives is provided with a brief explanation, and potential scenarios that might affect the firm are presented and assigned a level of likelihood. A list of references is provided in APA style at the end of the paper.
Overview
When Zappos first launched in 1999, there was a great deal of reluctance about the notion of selling shoes online. Shoes are a product in which fit is essential, and most entrepreneurs and investors feared that people would never buy shoes that they could not try on first. Zappos founder Nick Swinmurn was able to convince investors Tony Hsieh and Alfred Lin that because 5 percent of shoe buyers purchase from catalogs, the Internet represented a huge opportunity to capture a virtually untapped market.
The unique selling propositions of Zappos included 1) the ability to buy from a much larger selection of styles, sizes and colors than in brick and mortar stores; 2) the ability to receive free overnight shipping; 3) the provision of detailed information and visual access to the shoes; and 4) the “WOW” experience of a customer service call center whose passionate employees were trained to go above and beyond.
The company went through many growing pains
Executive Summary
This case study analysis is based on the 2009 case study from Stanford Graduate School of Business titled Zappos.com: Developing a supply chain to deliver WOW! It begins with the general overview of the background, philosophies and current problems faced by Zappos. This is followed by a hierarchal ranking of the four major presenting problems for the company, which are: maintaining the “wow” image without overspending, inventory management/distribution problems, transportation efficiency problems and customer behavior problems.
Each of these problems is addressed in more detail in the discussion section and the recommendations section at the end of the analysis. Prior to the conclusion and recommendations section, a list of possible strategic alternatives is provided with a brief explanation, and potential scenarios that might affect the firm are presented and assigned a level of likelihood. A list of references is provided in APA style at the end of the paper.
Overview
When Zappos first launched in 1999, there was a great deal of reluctance about the notion of selling shoes online. Shoes are a product in which fit is essential, and most entrepreneurs and investors feared that people would never buy shoes that they could not try on first. Zappos founder Nick Swinmurn was able to convince investors Tony Hsieh and Alfred Lin that because 5 percent of shoe buyers purchase from catalogs, the Internet represented a huge opportunity to capture a virtually untapped market.
The unique selling propositions of Zappos included 1) the ability to buy from a much larger selection of styles, sizes and colors than in brick and mortar stores; 2) the ability to receive free overnight shipping; 3) the provision of detailed information and visual access to the shoes; and 4) the “WOW” experience of a customer service call center whose passionate employees were trained to go above and beyond.
The company went through many growing pains
References: Beaudry, J.E. (2009, May 4) Zappos milestone: Customer service, Footwear News, Retrieved from http://about.zappos.com/press-center/media-coverage/zappos-milestone-customer-service Bessant, J & Lamming, R. (1999) Managing successful total quality relationships in the supply chain. European Journal of Purchasing and Supply Management, 1(1), 7-18 Irani, Z, Love, P.E.D. & Li, H. (2000) Gaining a competitive advantage in a virtual supply chain. International Journal of Logistics and Physical Distribution 30 (3), 64-71 Lee, H. L. (2000). Creating value through supply chain integration, Supply Chain Management Review, 14 (4) 30-37 Zappos.com: Developing a supply chain to deliver WOW! (2009) Stanford Graduate School of Business, Case GS-65