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Assignment on Strategies Adopted By Zappos.com MBA2: Strategic Management

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´╗┐Assignment on Strategies Adopted By Zappos.com MBA2: Strategic Management Table of Contents 1. Introduction 3 2. Definition of strategy 4 3. Vision , Mission and Top Objective of the Zappos.com 5 4. SWOT analysis of zappos.com 5 5. Porter?s 5 Forces Analysis Of Zappos.Com 7 6. PEST Analysis Of Zappos.Com 11 7. Porter?s Generic Model 15 8. Organizational Culture as A Competitive Strategy For Zappos.Com 19 9. Conclusion 23 10. References 24 1.0 Introduction The internet has changed the way of doing business. And the way consumers make their purchasing decisions. Because of the internet now we can see an increase in long distance purchases made by consumers as there are no geographical barriers. The one of the first companies to take advantage of this is Zappos.com. Zappos.com is an online shoe store that sells all kinds of men and women's shoes, from dress shoes to casual shoes, to athletic shoes, and the like. They also sell a growing range of accessories including designer handbags, belts, wallets, socks, and even diaper bags. In July 2009, the company sells its stocks worth $1.2 billion to Zappos.com. Since its founding in 1999, Zappos.com has grown to be the largest online shoe store. In this assignment we discuss how the company can use strategies such as SWOT analysis, 5Forces Analysis, PEST Analysis, Porter?s Generic model and the Company Culture to achieve success in global business. 1.1 About Zappos.com Headquarters: Las Vegas, Nevada CEO: Tony Hsieh Business: Online retailing Founded: June 1, 1999 Sales (2009): $1.2 billion Main product: Shoes Upcoming products: Handbags, clothing, eyewear, jewelry, luggage, accessories, housewares, electronics. Differentiator: Customer service and interaction Customer interaction channels: 1. Telephone 2. Email 3. Twitter 4. Blogs 5. Streaming video 6. Partnerships with Facebook, YouTube 2.0 Definition of strategy Johnson&Scholes (Exploring corporate strategy) defined strategy as follows: ?Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder?s expectations.? (www.tutor2u.net accessed on 10/11/2011) ...read more.


Customers favor following the normal commercial process of going to the store, paying the product and having it immediately than going online, giving their bank details and waiting for a number of days to obtain the product. But Zappos.com implements a low pricing strategy and next day delivery strategy to keep attracting customers to their web site. 6.3 Social Environment The third feature of PEST is looking at the forces inside the society such as family, friends, contemporaries, neighbors and the media. Social factors influence our attitudes, interest s and opinions. These factors shape who we are as people, the way we behave and eventually the way we purchase. Today Social networking has become a huge factor in a very short period of time. Social attentiveness of the world?s environmental needs influence the products that many people buy. Also companies have to understand the ethical and religious believes in countries. In some cultures Internet use is not permitted because of the fact that at some point contents in the internet may spoil their cultural, ethical and social believes. Zappos.com has a special social network marketing strategy to attract more young customers to their site. They use Twitter and Facebook to run their marketing campaigns. They create brand awareness through social networking sites. 6.4 Technological Environment The fourth aspect of PEST is technology, as you almost certainly know technological advances have very much changed the way in which businesses function. Technology has shaped the world which expects instantaneous results. This technological uprising has improved the speed at which information is exchanged between stakeholders. A quicker exchange of information can help businesses as they are able to act in response speedily to challenges inside their working environment. Internet is having a great influence on the marketing mix strategy of organisations. Consumers are now able to shop 24 hours a day from their homes. Zappos.com is a company very much involved into the technologically field, and its accomplishment has been well achieved over the past eleven years, ...read more.


There is constantly opportunity for development and CVF always see the importance when creating those developments. CVF want to become the supreme service company in the world. 8.9. Be Passionate And Determined What keeps CVF going? It?s enthusiasm for our business and our culture. They?re enthused as they have faith in what they are doing and where they?re going. They don?t receive ?that?ll never work? for an answer. A lot of people told us that selling shoes online would never work; think if we have listened to them! CVF has an encouraging and confident approach, because this encourages everybody with him. 8.10. Be Humble CVF understands that regardless of all the big things the Zappos.com has achieved in the past, we have to face lot of challenges in the future. No matter what happens, CVF is for all time considerate of everybody. CVF likes to commemorate our individual and team achievements. 9.0 Conclusion Zappos.com has grown step by step from its initial beginning of online shoe Retail Company. During this period they have incurred massive losses and it became more expose to competition and threats. Maintain a low cost while achieving a high profit is Zappos.com?s greatest challenges. However they have key advantages of having a highly recognized brand name, providing high quality customer experience, massive volume of sales and realizing economies of scale. These advantages will help them to claim competitive advantage over their main competitors. However Zappos.com should develop strategic partnerships with all its suppliers. In a fast changing online business environment with a high competitors' force Zappos.com have to implement new product diversification strategies in order to continue its market leadership position. Zappos.com has to continuously become accustomed to the rapid changing conditions. Strategy implementation should be recognized as a procedure of constant learning, which has learning regarding the goals, the result of likely actions towards these goals and how to execute these actions. The superiority of a developed strategy and the pace of its implementation will consequently depend on the superiority of Zappos.com?s cognitive and behavioral learning processes. 10. ...read more.

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