Zappos operates as a subsidiary of Amazon, and they are similar in their product offerings. Zappos continues to differentiate itself by customer service, no shipping, and allowing the customer to “try it on” mentality with a return policy of no questions asked. By doing this, Zappos created its own market with similar product offerings, and is the reason why 75% of Zappos business is from repeat customers (Petro, 2015). Zappos should capitalize on what is working and draw from its loyal customer base by investigating new product offerings and applying the same service principles.
Internal and external analysis should be conducted prior to moving into new product sales. This analysis will determine the current strategy and performance and …show more content…
After researching the target market, Zappos could determine specific furniture items to launch the online furniture sales. Zappos can maintain the same core values that guide this furniture business unit. In order to carry out the mission of selling furniture online, and to achieve the goals and objectives, developing a business unit strategy is required. Much research is required in this area for success, since furniture is large and bulky for delivery shipping cost increase, and will impact the philosophy of returns “no questions asked.” Functional strategy is just as important with the need to acquire the furniture, inventory control, warehouse location, and marketing (Ferrell, Hartline, 2014). My suggestion for Zappos product and distribution strategy is to start with basic, high quality furniture items and add to the product offerings as the company is able to handle the volume. This is the same concept Zappos executed moving from shoes to handbags, linens, …show more content…
Sticking to the basics, excelling in customer service, providing stellar mobile friendly service and quality will launch another successful product offering for Zappos (Rampton, 2015). Providing a user friendly, and quality website with multiple pictures and detailed product descriptions will assist the buyer in making the choice. Zappos will have the ability to sell multiple brands, rather than online shopping from multiple stores, providing a one stop shop situation for the buyer. Zappos can also consider multiple delivery options and decide cost of those services. Zappos can maintain their free shipping to the door, or they can offer inside the door and white glove delivery for a fee. This would create another revenue stream in this business unit that could be beneficial since shipping cost is costly for furniture (Colley,
Internal and external analysis should be conducted prior to moving into new product sales. This analysis will determine the current strategy and performance and …show more content…
After researching the target market, Zappos could determine specific furniture items to launch the online furniture sales. Zappos can maintain the same core values that guide this furniture business unit. In order to carry out the mission of selling furniture online, and to achieve the goals and objectives, developing a business unit strategy is required. Much research is required in this area for success, since furniture is large and bulky for delivery shipping cost increase, and will impact the philosophy of returns “no questions asked.” Functional strategy is just as important with the need to acquire the furniture, inventory control, warehouse location, and marketing (Ferrell, Hartline, 2014). My suggestion for Zappos product and distribution strategy is to start with basic, high quality furniture items and add to the product offerings as the company is able to handle the volume. This is the same concept Zappos executed moving from shoes to handbags, linens, …show more content…
Sticking to the basics, excelling in customer service, providing stellar mobile friendly service and quality will launch another successful product offering for Zappos (Rampton, 2015). Providing a user friendly, and quality website with multiple pictures and detailed product descriptions will assist the buyer in making the choice. Zappos will have the ability to sell multiple brands, rather than online shopping from multiple stores, providing a one stop shop situation for the buyer. Zappos can also consider multiple delivery options and decide cost of those services. Zappos can maintain their free shipping to the door, or they can offer inside the door and white glove delivery for a fee. This would create another revenue stream in this business unit that could be beneficial since shipping cost is costly for furniture (Colley,