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Minder Chen
Associate Professor of MIS Chair of the Business and Economics Program Martin V. Smith School of Business and Economics CSU Channel Islands
minderchen@gmail.com or minder.chen@csuci.edu Web site: http://faculty.csuci.edu/minder.chen/ Course materials: http://faculty.csuci.edu/minder.chen/event/
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http://images.businessweek.com/ss/09/02/0219_customer_service/20.htm Zappos - 2
Zappos
Founded in 1999. A service company that just happens to sell shoes. - Tony Hsieh, CEO of Zappos Zappos can cultivate a reputation for outstanding customer service to the point where it, too, can become a springboard into several markets. It rang up a record $1 billion in sales in 2008. Employees are referred to as Zapponians.
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Why selling shoes online is not considered a good e-commerce idea? What policies Zappos have to make it easier for you to buy shoes online? Why changed Tonys mind to invest in Zappos (shoesite.com)? Why were the challenges in the early stages of Zappos company history? Why Amazon acquired Zappos? Why Zappos moved its headquarter to Las Vegas? Why Zappos logistic center at Explain the meaning of Zapposs culture and how it foster its culture What are the major differences between Amazon and Zappos? What are the unique approaches that Zappos have taken that are against traditional wisdom? Carry less and sale more (drop-ship) vs. Carry all Outsource call center vs. in-house call center How is the performance measured for call center employees?
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Assignment Questions
1. What are Zappos core competencies and sources of competitive advantage? How sustainable are they? What role does corporate culture play in these questions? 2. How important is next-day air shipment to the customer experience? Is it worth the cost? How might you change it in the cost-conscious environment facing the company in late 2008? 3. 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? 4. 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?
Source: Stanford Graduate School of Business, Case GS-65, Teaching Notes Zappos - 6
Sold to Amazon
It was announced on July 22, 2009 that Amazon.com would buy Zappos for $940 million in a stock and cash deal. Owners of shares of Zappos were set to receive approximately 10 million Amazon.com shares, and employees would receive a separate $40 million in cash and restricted stock units. The deal was eventually closed in November 2009 for a reported $1.2 billion. Softline vs. hardline goods
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Logo Design
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Happiness
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