Zappos: Facing Competitive Challenges

Calma, Johanna Lyzza O.

Musali, Abdul Jalil

BSBA-3B

Zappos: Facing Competitive Challenges

Zappos is an online retailer based in Las Vegas. Its initial goal has been to be the best website for buying shoes, offering a wide range of brands, styles, colors, sizes, and widths. The zappos.com brand has grown to offer shoes, handbags, eyewear, watches, and accessories for online purchase. The company’s vision is that in the future, online sales will account for 30 percent of all retail sales in the US and Zappos will be the company with the best service and selection. Zappos believes that they can become the online service leader, drawing customers and expanding into selling other products. They also believe that the speed at which the customer receives an online purchase plays a critical role in how that customer thinks about shoppine online again in the in the future. They offer a fast and free delivery and returns (365 days to return) which attracts customers who shops online.

Zappos CEO Tony Heish has shaped the company’s culture, brand, and business strategy around 10 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

Zappos’s employment practices help to perpetuate its company culture. Their HR team focuses on finding employees who are creative and has a strong individuality. Managers are encouraged to spend time with employees outside the office, any employee can reward another employee a $50 dollar bonus for good performance. All new hires/trainees are offered $2,000 dollars to leave the company to weed out individuals who will not be happy working at the company.

Statement of the Problem

 What challenges is Zappos facing that may derail its attempt to be the best online retailer?

• Attracting customers. People prefer to buy products from outlet stores, boutiques or markets where they can physically feel, see and try-on a product especially clothing products which needs to be the right size for