Zappos.Com: Focus on Customer Service

            
  
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Case Details:

Case Code : MKTG207
Case Length : 17 Pages
Period : 1999-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Zappos.com, Inc.
Industry : Internet Retail, Shoes.
Countries : USA, Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

Other Strategies

In its initial stages, Zappos did some offline advertising to develop its brand image and to attract shoe manufacturers. Most of the advertising was aimed at suppliers rather than customers. Over time, after it had won over the suppliers, it shifted the focus of its advertising to customers...

The Growth of Zappos

Within a few years of its launch, Zappos became one of the largest shoe stores in the world, offering shoes in a wide range of designs and sizes. Miles Olson, an independent sales representative for Simple Shoes and UGG Australia, said, "The [footwear] industry was in shock when they found out the numbers Zappos is doing and how popular they are."...

 Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Challenges

Some analysts felt that Zappos's decision to drop competitive pricing would lead to a drop in sales. They felt that customers would be reluctant to pay a premium only for customer service, particularly when buying branded products...

Outlook

Zappos' sales crossed US$ 840 million in 2007, prompting the company to bring forward its goal of achieving annual sales of US$ 1 billion, from the year 2010 to the year 2008. In mid-2008, Hsieh said, "Back in 2003, we had set the goal of hitting US$ 1 billion by 2010, so we're very excited that we're on track to hit the US$ 1 billion milestone ahead of our original goal."...

Exhibits

Exhibit I: Zappos' Sales
Exhibit II: Logo of Zappos
Exhibit III: About Twitter

Exhibit IV: Critical Analysis of Zappos' Affiliate Program
Exhibit V: Top Ten US Internet Retailers in 2008
Exhibit VI: Some of Zappos' Competitors


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