Assignment on Strategies Adopted By MBA2: Strategic Management

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Assignment on Strategies Adopted By

MBA2: Strategic Management

Table of Contents

  1. Introduction                                                                                3                                                                                
  2.  Definition of strategy                                                                        4
  3. Vision , Mission and Top Objective of the                        5
  4. SWOT analysis of                                                        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 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 Since its founding in 1999, 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

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:

  • Telephone
  • Email
  • Twitter
  • Blogs
  • Streaming video
  • 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.”

( accessed on 10/11/2011)

3.0 Vision, Mission and Top Objective of the

3.1 Vision

To provide a legendary customer experience.

3.2 Mission Statement

Our mission is to position as the online service leader. If we can get customers to associate the brand with the absolute best service, then we can expand into other product categories beyond shoes.

3.3 Top Objective

“Our number one priority as a company is our company culture. Our whole belief is if we get the culture right, then most of the other stuff, like building a long-term brand or delivering great customer service, will just naturally happen on its own.”

( accessed on 10/11/2011)

4.0 SWOT Analysis Of Zappos.Com

4.1 Strengths

  • Customer relationship & IT support business strategy.  Company carefully monitors customer buying behavior and provide customize solutions based on their previous purchase history.
  • Product diversification. has a product range from shoes to fashion accessories. This will help the company to grow its customer base.
  • Strong distribution channels. provides a next day delivery service to its customers.
  • Pricing strategy. delivers an outstanding service at a low price.
  • Innovation, innovates the free shipping both ways concept.  

4.2 Weaknesses

  • By adding new categories by diversification of products has the risk of damaging its brand. Because they are famous for online shoe selling.
  •  No region based sites.
  • Because of the free shipping policy is losing their profits.

4.3 Opportunities

  • E-Commerce expansion in Asia.
  • Takeover by creates more brand value.
  • Growth of the Global Internet users.

4.4 Threats  

  • High competition due to low market entry barriers.
  • Global economic crisis
  • Hacking problems.

5.0 Porter’s 5 Forces Analysis Of Zappos.Com


M.E.Porters 5 Forces analysis will help to do an industry analysis. It will give us a clear idea about the strengths of industry 5 forces. This will determine the eventual profit potential of the industry.  

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5.1 Competitive Rivalry

An initial point to analyze the industry is to look at competitive rivalry. If entry to an industry is easy then competitive rivalry is high. If it is easy for consumers to move to a substitute product for example from tea to coffee then once more the competitive rivalry will be high. Competitive rivalry is medium to high for There are many players in the online shoe market such as “endless, and PIPERLIME”. Because of this there is a high head to head competition between these players. There is a high fixed and ...

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