Essay about Zappos Case Analysis

714 Words 3 Pages
Andy Crummel
MGT 337
Professor McCammon
Zappos’ Case Analysis
1. What are Zappos’ core competencies and sources of competitive advantage? How sustainable are they? What role does corporate culture play in these questions?
I identified quite a few core competencies within Zappos that allow them to distinguish themselves from their competitors. First off, they have a very unique return policy, such that they allow the customer 365 days to return the product, in addition to paying for the customer to ship the item back to them. They also have a much faster web interface, as well as extensive online product information. Adding to the technical side of things, Zappos’ also has trained call center operators, and the ability to
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There isn’t a need for Zappos to add more products to their website, as they have items to fill almost every department imaginable. They decided that the challenges and costs of replicating Zappos’ success would be far too costly for international expansion. Selling under its own label would go against Zappos business plan to provide shoppers with that WOW experience. Personally, I feel that Zappos has other quality alternatives from expansion that will allow it to continue to be successful. They need to keep focusing on gaining new customers, as well as retaining existing customers. As the number of online shoppers keeps increasing, Zappos needs to make sure they maintain their low prices and WOW strategy to keep the customers coming. Well informed marketing to the customers that Zappos is a one stop shop kind of website will certainly keep the website active and the profits growing.
3. How would you expect the environment of more cost conscious consumer to affect Zappos’ business? What can Zappos’ do to maintain sales in such an environment? The environment of a more cost conscious consumer will certainly affect Zappos’ business. Zappos wants to avoid being known as a discount website, but at the same time, they must make sure their prices are not higher than any of their competitors. Customers in today’s economy will search many sites for the same product to see where they can get it a few dollars cheaper. If they could develop a software

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