Zappos

Zappos.com
Industry Standards:
Opportunities:
Per capita disposable income
Percentage of households with at least one computer
Number of broadband connections
Technologies
Websites
Secure online payment methods
Safety of the online shopping process
Confidence in the online buying experience
Convenience
Unique merchandise
Specific and niche-market for goods
In 2009, only 3% of the U.S. population were Zappos customers, “suggesting that the company was not close to saturating its opportunities in the U.S., let alone other international regions.” (Zappos.com: Developing a Supply Chain to Deliver WOW!, 2009)
Threats:
Economy
Legal/Industry regulation
Consumer sentiment index
Customer retention
Delayed discretionary purchases
Changes in consumer preferences
Threat of substitutes
Market saturation
Weaknesses:
Returns are about 35% of gross sales (Zappos.com: Developing a Supply Chain to Deliver WOW!, 2009)
Buyer’s choice of clicks or bricks
Product availability
Cash conscious
Accelerated growth rate

Strengths:
Customer loyalty
Supply chain excellence
Strong Brand Recognition
Product Brand Name recognition
+1,136 brands
+1,800 employees
Creation of “vertical” sites within the Zappos.com website (Zappos.com: Developing a Supply Chain to Deliver WOW!, 2009)
Product descriptions
Prices
Privacy
Website functionality and ease of use
Warehouse/fulfillment space
Computer equipment and software development
Automation
Logistics
Ability to control on-hand inventory
Use and adaptability of new technologies
Customer loyalty
Clarity of focus and mission, everyone in the organization knows “what they stand for, how they’re going to market, what kinds of products they’re delivering to their customer, and how those customers should be treated.” (Rivers, 2010)
Focus on positioning for the future
Engage or re-engage customers
Create a motivating work environment, associates feel valued and motivated – leading to...