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INTRODUCTION

Introduction

!   23

!   Fortune 500 “Best Companies to Work For”:

•  Highest Ranking Newcomer

!   In Search for the Perfect Pair of Shoes •  Founded in 1999 by Nick Swinmurn

•  Nick was looking for a specific pair of shoes but was unsuccessful

•  He then decided to quit his day job to start an online shoe retailer &

was BORN

Brief History of Company

���PRODUCTS

Key Features !   Free Shipping Both Ways (Within US)

!   365-Day Return Policy

!   Real Inventory in Warehouse Available for All Products •  24 Hours Warehouse

!   Contactable 24 hours a Day, 7 Days a Week •  1800 contact number is prominently placed on every page of the site

!   Providing ‘Wow’ Customer Service •  If products are unavailable, sales staff direct customers to competitors

LEADERSHIP & MANAGEMENT

Man Behind the Scenes

Brief History

•  Harvard Student: Computer Science Degree

Management Philosophies !   Marketing Strategies:

•  Invest in only minimal advertising

Management Philosophies !   Associating Brand with Person

•  Deeper and more meaningful connections

CULTURE

Culture !   An Abstract from the Zappos 2008 Culture Book

•  C : Creating an

•  U : Understanding &

•  L : Lifestyle that

•  T : Translate to

•  U : Utmost

•  R : Respect for

•  E : Everyone

Culture Book !   Annually Issued By Zappos

!   Published for Every Employee, Partner, and even Vendors

!   Thoughts written by employees are directly transferred into the book

Ten Core Values - 1

Build Open & Honest Relationship with Communication

Build a Positive Team and Family Spirit

Do More with Less

Be Passionate & Determined

Be Humble

Ten Core Values - 2

Deliver WOW Through Service

Embrace and Drive Change

Create Fun and A little Weirdness

Be Adventurous, Creative, and Open-Minded

Pursue Growth and Learning

Hiring Process !   Two Interviews

!   Types of Training:

•  Company Culture Training

Hiring Process •  Mandatory Service

Training for all Positions

•  Answer Phones (2 Weeks) •  Packing Shoes into boxes (1 Week)

Hiring Process !   After 4 Weeks of Training

•  They are offered US $2000 to leave company if there is NO Culture Fit

Creating the ‘WOW’ Customer Service

SWOT ANALYSIS

SWOT Analysis !   Brief Review

Zappos’ SWOT Analysis !   ZAPPOS’ SWOT Analysis

Strength !   Culture Management

•  The 10 Core Values & Hiring Process

•  Culture Book

!  Positive Work Environment

•  Financial Incentives

•  100% Medical & Dental insurance

•  Family Environment

!  Best Selection

•  No Call Time

Strength

150,000

3 Million

100%

Strength !   Repeat Customers

•  UPS: Fast Shipping & 365 Refund Policy

•  “Word of Mouth” / Viral Marketing New Customers Acquired Heard About Zappos

through: - 44% from Internet - 43% from Word of Mouth - 13% from Others

Weakness !   Unattractive Website

!   Cluttered & Difficult Navigation

!   Personal Product Recommendation Office

•  Problem with execution

•  Unwanted recommendations (Especially when shopping or others)

Weakness !   Price Competitiveness

!  Coupons !  Payment Methods

Opportunities !   Branching Off to Various Products Categories

•  Especially non-commodity products

•  Apparels, accessories and even cookery

•  Reflects Customer Loyalty

BOUGHT

OVER

Threats !   Amazappos or Zappozon?

!   Tough to Maintain Culture with Expansion

!   Financial Crisis

•  Layoff 125 employees

!   365 Refund Policy: Achilles Heel?

•  High Costs

•  Environmental Friendly?

CONCLUSION

Conclusion