2. Contents
What is Zappos.com?
Core competency& Corporate culture
Next day air shipment & customer experience
Business expansion
Changing environment and Zappos.com
3. What is ZAPPOS.COM?
1. World’s largest
4. Passionately
online retailer of
engaged employee
shoes
Business
Employee
Revenue 5. Huge collection of shoes
and other products
2. Annual gross
sales of $1 billion Product
3. Outstanding
reputation for
customer
service
Customer
4. Sales figure of the zappos.com
“Customer services as an investment rather than an expense”
5. Core competency& Corporate
culture
What are Zappos’ core competencies and
sources of competitive advantage?
How sustainable are they?
What role does corporate culture play in
these questions?
6. Core Competencies
“Every interaction is a brand opportunity”
Delightful customer services
Faster web interface and extensive online product information
Trained call center operators and toll-free call no
Excellent supply chain system
Return policy – free and 365 days allowance
7. Core competencies & Corporate culture
become a
Core competencies are
Competencies developed based on the Culture
corporate culture.
Culture give the competencies
8. Competitive advantages
Key Variables Typical Brand Zapoos.com
Service as Marketing Low High
Traditional Media Spend High Low
Toll Free Number Hidden Written on forehead
Invitation to interact Hard to find Everywhere
Openness to talk Clock is ticking; get lost Stick around; let's chat
Toll Free Number hours 9:00 am to 5pm 24hrs
Outsourcing Common Unthinkable
9. Corporate Culture
Deliver WOW Through Services
Embrace and Drive Change
Create Fun and a Little Weirdness
Be Adventurous, Creative, and
Open Minded
Pursue Growth and Learning
Build Open and Honest
Relationships with Communication
Build a Positive Team and Family
Spirit
Do More with Less
Be Passionate and Determined
Be Humble
10. Next day air shipment & customer
experience
How important is next-day air shipment to
the customer experience?
Is it worth the case?
How might you change it in the cost
conscious environment facing the
company in late 2008?
11. Next day air shipment &
customer experience
•Surprise upgrade delightful
•Rapid spread of Positive WOM
•Next day delivery promise -disappointment
•No WOW! Anymore
•Decline customer satisfaction
•In late 2008, reduce surprise upgrade and
deliver orders by ground shipment
12. Business Expansion
How would you expand the business?
Would you add more products, more
geographies, or by selling private labels?
As you expand the business, how can the
company become more profitable,
particularly in light of the costs associated
with the focus on service?
13. Business Expansion
No significant expansion should be done at the time of recession
US & Canada – Are there
still any opportunities?
Are we ready for Europe’s market?
“wow not just our customers and our employees, but also our partners”
14. How to generate more profit?
Vertical expansion
Enhance services level
Create more (+) WOM
Acquired new customers
Retention of existing customer
“a service company that sells shoes”
15. Changing environment and
Zappos.com
How would you expect the environment of
a more cost-conscious consumer to affect
Zappos’ business?
What can Zappos do in such an
environment to maintain sales growth?
16. Changing environment and
Zappos.com
Increasing sales, but decreasing
margin – cut costs
Stick to the core competency of
service delivery
Don’t reduce price. Selective
discounts can be explored
Keep a check on consumer
behavior and competitive websites
Improve supply chain
Out bound freight improvisation
