ZAPPOS Case Study
Abstract
The online retailer Zappos stands before challenges in order to continue grow and tackle the issues of the current global economic environment. This article investigates the company’s core competences and competitive advantages and how they should be used to create a sustainable competitive position. With excellent customer service, company culture and information- and supply chain management in focus, Zappos should mainly expand its business by introducing new product categories. Complementing this, they will expand to Canada and further market its concept Powered by Zappos, offering webpages and customer service for manufacturers. Further more the company must be more cost-conscious and some changes in the supply change are to be made in order to cut costs, improve competitiveness and create a scalable business model. Primarily changes have to be made for the next-day shipments and delivery to the company warehouse.
1 Table of Content
Zappos.com 4
Core competences and sources of competitive advantage 4
Customer relationship management 4
Fit and return policy 5
Shipment 5
Call centre 5
Online presentation 5
The cost of service 5
Supply chain 6
Drop-shipments to in-house warehousing 6
Shipping 6
Supplier delivery 6
Scalability 6
Information management 7
Company culture 8
Next day shipment’s influence on customer experience 8
Changes 8
Areas of improvement and expansion 9
Private labels 9
International expansion 10
Powered by Zappos 11
Expansion with new product lines 11
Measures to increase profitability and sustainable competitive advantage 11
Supply chain - delivery schedule 11
Additional fulfilment centre 12
Marketing 12
Conclusion 12
Appendix 14
Zappos’ values 14
Works cited 15
2 Zappos.com
Zappos was funded in 1999 when Nick Swinmurn had a feeling there must be a better way to sell shoes, providing an extensive selection of styles, colours and sizes. With help from Fred Mossler, who previously worked at Nordstrom, he tried to raise capital for his
The online retailer Zappos stands before challenges in order to continue grow and tackle the issues of the current global economic environment. This article investigates the company’s core competences and competitive advantages and how they should be used to create a sustainable competitive position. With excellent customer service, company culture and information- and supply chain management in focus, Zappos should mainly expand its business by introducing new product categories. Complementing this, they will expand to Canada and further market its concept Powered by Zappos, offering webpages and customer service for manufacturers. Further more the company must be more cost-conscious and some changes in the supply change are to be made in order to cut costs, improve competitiveness and create a scalable business model. Primarily changes have to be made for the next-day shipments and delivery to the company warehouse.
1 Table of Content
Zappos.com 4
Core competences and sources of competitive advantage 4
Customer relationship management 4
Fit and return policy 5
Shipment 5
Call centre 5
Online presentation 5
The cost of service 5
Supply chain 6
Drop-shipments to in-house warehousing 6
Shipping 6
Supplier delivery 6
Scalability 6
Information management 7
Company culture 8
Next day shipment’s influence on customer experience 8
Changes 8
Areas of improvement and expansion 9
Private labels 9
International expansion 10
Powered by Zappos 11
Expansion with new product lines 11
Measures to increase profitability and sustainable competitive advantage 11
Supply chain - delivery schedule 11
Additional fulfilment centre 12
Marketing 12
Conclusion 12
Appendix 14
Zappos’ values 14
Works cited 15
2 Zappos.com
Zappos was funded in 1999 when Nick Swinmurn had a feeling there must be a better way to sell shoes, providing an extensive selection of styles, colours and sizes. With help from Fred Mossler, who previously worked at Nordstrom, he tried to raise capital for his