Presented by:

Pooja kumari
Stephy John
Jyotika
Introduction:
Type of site Subsidiary of Amazon.com
Founded July 12, 1999; 17 years ago
INTRON
Headquarters Las Vegas, Nevada, U.S.
Warehouse: Shepherdsville, Kentucky, U.S.

Owner Amazon.com
Key people Tony Hsieh (CEO), Nick Swinmurn, founder

Fred Mossler

Industry Retail
Products Shoes, handbags, eyewear, accessories, clothing

Revenue US$1 billion (2009)

Employees 1,500+
Slogan We are a service company that happens to sell shoes. And
handbags. And more...
Website zappos.com
 Evolution:
Year Milestone
1999 - Found by Nick Swinmurn
- A variation of the Spanish word Zapotas which means
shoes.

2000 Zappos records $1.6 million in gross sales

- Zappos had 150 brands and 400.000 pairs of shoes

2000-2005 Nick Swinmurn and Tony Hsieh as CO-CEO of Zappos

- Sustained effort produces $8.6 million in gross sales
- The brand elevate gross sales to $32 million
- Gross sales Zappos more than double to $184 million

2005-2008 Alfred Lin, cofounder of venture frogs, join Zappos as CFO

- Gross Zappos sales increase to $370 million
- Zappos moved its headquarters to Las Vegas
- Nick Swinmurn leaves Zappos
- Gross sales at Zappos climb to $597 million
2007 - 6pm.com is acquired by Zappos
- Zappos expand its product categories to include eyewear,
handbags, clothing, watches and kids merchandise
- Gross sales at Zappos hit $840 million
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Zappos gross sales by year
 Zappos owning the 3 C's:

Company Culture
Customer Service
Clothing
 Company culture:
Differentiator that gave the company competitive advantage
- 2005 Zappos core values

1. Deliver WOW Through Service

2. Embrace and Drive Change
3. Create Fun and a Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships With Communication
7. Build a Positive Team and Family Spirit
8. Do More with Less
9. Be Passionate and Determined
10. Be Humble

- Additional courses: effective communication, coaching, overcoming conflict

& managing stress
- Additional 39 hours: Inspiring Great Teams, Leadership Zappos Style &
Cultivating Culture
 Customer service:

Believe rapid growth was due to customers loyalty

CLT team receives an average of 5,100 call per 24 hours
Goal is to wow customers & establish personal connection
Call times is not measured
Call center turnover in 2009 was only 7% whereas industry
average was 150%
Do not implement a pay-per-performance or reward system
Fulfillment Center outside Louisville, kentucky, consist 3 storage
area :
Static Racks freestanding shelving units
Carousels ferris wheel type shelving units
Kiva Automated storage & retrieval system using inventory
pods
Clothing:

2006 pursued additional lines of business.

U.S clothing market was four times larger
than footwear
market
Within 1 year Zappos had 300 different
apparel brands
2007 clothing reached 5% of Zappos sales
2008 Zappos sold $31 million in apparel
 Service Beyond Expectation

5 hours customer service support on call

Delivery in two way
Easiness to Return the good
PROBLEM STATEMENT

Continuing to grow after 2009

Merger of Zappos with Amazon

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 Zappos Acquisition

Why Amazon was choose to acquisition

Zappos?

What are the effects of Amazon acquisition?

Benefits of merger with Amazon

Zappos could go into the merger with Amazon

Amazon could be helping with all the infrastructure
It could increase operations and spread worldwide
Amazon is one of the biggest e-commerce companies
on the globe
The world class logistics and warehouse operations
can be used to improve the warehousing problems
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CONTINUING TO GROW ZAPS

Zappos was affected by 2008-09 economic recession

It hindered its growth
It anticipated generating sufficient free cash flow to pay
off its inventory costs, capital loans by the end of 2009
6pm.com

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CONT.

In 2009, company focused on reducing capital expenditures

and debt to improve cash flows
Kiva MFS
The static system was built to last 15 to 20 years and it was
around 3 years old
Under appreciated Capital

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CONT.

The new management committee seems to understand the

importance of Zappos culture -- the "social experiments" --
to our long-term success
In fact, one Amazon distribution center recently began
experimenting with its own version of Zappos's policy of
paying new employees $2,000 to quit if they're unhappy
with their jobs
In the first quarter of 2010, net sales at Zappos were up
almost 50 percent, and we've added several hundred new
employees. The growth has made Amazon very happy
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RECOMMENDATION

Keep Focus on Service

Keep Maintain their Culture
Improve Process and Financial Management

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REFERENCES

https://books.google.co.in/books?id=YsOjAgAAQBAJ&pg=PA527&lp
g=PA527&dq=zappos.com+2009+clothing,+customer+service+and+co
mpany+culture+income+statement&source=bl&ots=0dpYEd4AgT&sig
=4_LNW1vtCOFttimPkG2unF9Pso8&hl=en&sa=X&ved=0ahUKEwjb-
LSs_KHTAhUHgI8KHVXxAZoQ6AEIMDAD#v=onepage&q=zappos.
com%202009%20clothing%2C%20customer%20service%20and%20co
mpany%20culture%20income%20statement&f=false

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