Zappos.Com Case Essay

1. Sources of competitive improvement lay in the field of their first offer. * First of all they postd a huge selection of styles, colors and sizes of shoes as it was ace of the biggest problems of traditionalistic retailers. * At the first stage of their entering of the market, Zappos was the first-mover, which eventually supported its winner as the market for on-line order of shoes was estimated to be astir(predicate) $2 billion. * High level of customer satisfaction was also one of the definitive factors to indicate proper operations of the Zappos.Company achieved such a victor due to its corporate culture and a value of extreme submergence on its customers. In the retail business on of the indicators of retailer advantage is the level of customer return and Zappos succeed to attain this indicator on a very high level. Corporate culture was about delivering debauchery effect by dint of renovation and hiring volume who were passionate about service was the most import ant concerns of the upper side-managers.This WOW effect was delivering through many slipway from the speed of site loading, all-round telephone support, allowance for 365 days of return, spacious information about the carrefours and fast site loading. Thats w presentfore customers were ordain to make purchases to a greater extent often. In my opinion, service is a very important part of providing sustainable sales growth for the company as it creates an get a line of reliable company which operates in the internet and helps people to choose surrounded by traditional shopping and e-shopping. This image magic spell managed properly was a sustainable competitive advantage for Zappos.As it was mostly mentioned features of a corporate culture which succeed this competitive advantage than we dissolve say that corporate culture is a background for it. 2. According to the position of the company to retain loyalty of the customers and provide WOW effect through service, it became more important to use UPS as a reliable logistics provider and organize 1-day air delivery with no extra set. Therefore, I can assume that reducing marketing be for gaining new customers were the right decision as long-term partnership with precedent customers was able to generate profit and new customers in the long unscramble perspective.From an some other side, Zappos was able to keep transportation cost on the immutable level part from the scale of the collaboration with UPS (as it was mentioned, Zappos has become one of the top three UPS shippers). And as it was estimated, UPS ground shipping was able to reach b atomic number 18ly 11% of Zappos customer within 1 day. Knowing the fact that consumers got apply to high qualitative and fast delivery, this could significantly harm the perception of the deformity by loyal customers. This is the reason why company didnt turn down to provide one-day air shipping. . First of all, we should understand that in situation of crisi s people are decreasing their spending on high-end products if they previously had opportunities for that. Thats why it can be suggested, that company should concentrate more on spile market products and decrease costs while being very overcareful about scalable expansion. As it was mentioned in the case, Zappos searched for opportunities to improve its supply cosmic string without harmful effect on customer satisfaction.From this point of view, company can concentrate more on retaining loyal customers and acquiring new customers partly by providing promotional discount actions, but at the aforesaid(prenominal) prison term keep prices on the same level, otherwise it can create a sense of discounter among Zappos clients. 4. The most important concern while expanding such business as Zappos is retaining this WOW effect. There are many factors which could contact this service oriented culture negatively, so that company should understand that fast expansion in the situation of crisis can be very risky.From the other hand, there is no need to add more product to its product range as its already sell shoes, clo liaison, handbag, accessories, baby products, beauty, entertainment, eyewear, home, jewelry, sporting goods, and watches. In my opinion, company can diversify its businesses by developing other e-platforms with mentioning that they are powered by Zappos. That means that company could partly avoid risks committed with brand perception and increases sales level by selling more products. 5. The environment of a more cost-conscious consumer can harm the business if it wont be careful about its costs.The main idea here is to provide at least the same level of quality in service with constant rates. Zappos can lower transportation costs through developing closer relationships with transport companies (for ex. try to reduce shipment costs from UPS or use ground shipment when it wont stockpile delivery time). Company can also provide selective discounts (fo r ex. providing promotion discounts for loyal customers or creating encouraging promotional events). They could also take into context competitors activities and offers in order to make sure that they provide the best prices or better opportunities for their clients.Zappos must take advantage of its other core competencies to discipline that the customer will choose to buy from Zappos as long as they are not paying more for the product. Probably, other variant to rise sales would be testing the system when customer have an luck to enjoy free shipping for a bit higher price, while company could gain profitability from a scope of the shipments. 6. First thing which comes to a mind is preserving Zappos corporate culture and brand on the same level as these things made Zappos that successful.In my opinion, it would be better to leave Zappos as an independent entity with its charismatic top-manager and founder Tony Hsieh while his forces led company to the hint position. Another thin g to concern is a cost structure. One of the ship canal that Amazon tries to deliver a great customer experience is by offering low prices, whereas Zappos wasnt ever been concentrated on price competition. This policy also shouldnt be excluded from the Zappos future strategy as Zappos brand is more about service, but not a low price.Probably, another important step would be Zappos access to Amazon resources. They could be improvements and access to supply chain expertise, warehouses, suppliers and other advantages. Finally, Amazon could use Zappos for aspect upmarket towards higher-priced goods. The high touch model obviously comes with higher costs. Its much more attractive when selling a $400 checkmate of boots than a $29 pair of flip-flops. Zappos has already been rapidly expanding their product offerings so greater sales of fashion items like handbags and wallets are already locomote in this direction.