zappos case
Zappos Case Analysis
Zappos, as we all know, is a well- run company that selling shoes, as well as other products, such as handbag, luggage, clothing, and etc. Why can Zappos achieve such a huge success? Form my point of my view; there are 5 key success factors. Firstly, Zappos mainly focus on customer service. For example, it provides a WOW experience; the loading speed is faster than other retailer company. Like Hsieh said, he regarded customer service as an investment, instead of an expense. Therefore, it creates a bunch of loyalty customer; there is no doubt that more revenues are generated. The automatic warehouse system is second factor. In order to improve efficiency, Zappos installed a robotic system in warehouse to help workers. Robots are dealing with shelves picking, such as selecting shelves that contained items to be selected, and then bring them to workers. This significantly improved workers efficiency. The third factor is Zappos has multiple brands that customer loved. Signing brands on the website are based upon customer searched for or asked for, and the company also will investigate and evaluate those brands are not on its site, but customer want to buy. The fourth factor is Zappos provided free shipping and free returns within 365 days, instead of 60 days. Customers are able to purchase many kinds of shoes with different style or size. They can keep what they like, and return what they do not like or fit. Last but not least, the inventory of Zappos are stocked in their own warehouse. Due to items to be shipped can directly from Zappos warehouse, the problem of delaying customer’s order has been addressed successfully. The customer satisfaction has increased a lot.
As you can see in a strategy map, each area is interconnected in some way. In financial perspective, the growth revenue is mainly from returning customer and 3% market share. In customer perspective, the wow factors consist of fast delivery time and 365 days return.
Zappos, as we all know, is a well- run company that selling shoes, as well as other products, such as handbag, luggage, clothing, and etc. Why can Zappos achieve such a huge success? Form my point of my view; there are 5 key success factors. Firstly, Zappos mainly focus on customer service. For example, it provides a WOW experience; the loading speed is faster than other retailer company. Like Hsieh said, he regarded customer service as an investment, instead of an expense. Therefore, it creates a bunch of loyalty customer; there is no doubt that more revenues are generated. The automatic warehouse system is second factor. In order to improve efficiency, Zappos installed a robotic system in warehouse to help workers. Robots are dealing with shelves picking, such as selecting shelves that contained items to be selected, and then bring them to workers. This significantly improved workers efficiency. The third factor is Zappos has multiple brands that customer loved. Signing brands on the website are based upon customer searched for or asked for, and the company also will investigate and evaluate those brands are not on its site, but customer want to buy. The fourth factor is Zappos provided free shipping and free returns within 365 days, instead of 60 days. Customers are able to purchase many kinds of shoes with different style or size. They can keep what they like, and return what they do not like or fit. Last but not least, the inventory of Zappos are stocked in their own warehouse. Due to items to be shipped can directly from Zappos warehouse, the problem of delaying customer’s order has been addressed successfully. The customer satisfaction has increased a lot.
As you can see in a strategy map, each area is interconnected in some way. In financial perspective, the growth revenue is mainly from returning customer and 3% market share. In customer perspective, the wow factors consist of fast delivery time and 365 days return.