Introduction:
After roaming around for hours in several malls trying to look for the perfect shoes with perfect design and size, Nick Swinmurn mission had failed. This was the reason he started “ShoeSite.com” in 1999. The first thought was to make a site that offered the best selection in shoes regarding brands, styles, shades, sizes, and widths. After a few months the name was changed into “Zappos” and that’s when all the magic began. If you are wondering what’s so special about Zappos, and why would a business very successful like Amazon.com would buy it for 1.2 Billion dollars you should defiantly consider continue reading this case study.( Zappos.com 2014)
What is Zappos?
Zappos is an electronic commerce company that deals with a lot of businesses such as selling shoes, clothes and other products and even opening their own restaurants In 2000, Tony Hsieh became Nick Swinmurn’s partner and the CEO of the company. Moreover In 2009, the company’s stocks reached 1 Billion Dollars and considered the 11th best company to work for, according to a 2012 survey by Fortune magazine. (Wikipedia, the free encyclopedia 2014)
Problems:
Throughout its work, Zappos faced many problems that required a lot of time, thinking and money to solve them. most of these problems were regarding Costumer Service and the Call Center such as; Employees at that time did not have enough training , the company’s services were very traditional, and the call center location was very expensive.
Zappos 10 commandments (The solution)
1. Deliver WOW through service. This is the center esteem that controls all of them. Zappos has gotten synonymous with model client administration (routinely moving up to free overnight shiping, for in...
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...tside their work as well as its solutions for those who are facing the same problems. Zappos culture has proved its effectiveness in both human resource and in production . in human resource “Zappos Culture is the overall environment; space, attitude, freedom, management style, and actual physical surroundings which all work together to create a total milieu which attempts to make each individual better and happier on a whole, so that each one of us will then spread this to each other, our customers, and everyone we encounter. ” -Mike S. Employee since 2005 .After adopting these extreme methods and core values Zappos has become a very productive company employing more than 1500 employees and its revenue in by 2009 was estimated by 1 Billion dollars. (Zappos insights 2014)
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
This nationally recognized mass merchandiser that stood as Kohl’s other leading adversary in the market has everyday low prices that were able to compete with Kohl’s promotional events. Wal-Mart also outdid their competition when it came to number of store locations around the country. The weaknesses of this reputable company come to light when shoppers are looking to buy clothes and are not presented with nearly the selection that the department store can offer. Also, their service is not considered to be as helpful as the department stores that can input more expertise when trying on
Facts of the Case: In 2008, Samantha Elauf applied for a job at Abercrombie & Fitch, Inc., who as part of their “Look Policy” prohibit the use of caps. Elauf, as part of her religious practice, wore a headscarf to the interview. She was interviewed by assistant manager Heather Cooke, who gave her a score that qualified her to be hired. Cooke, however, was worried that Elauf’s headscarf was against the store’s policy and called her district manager Randall Johnson. She informed Johnson of her belief that Elauf wore her headscarf because of her religion, and Johnson replied that headwear whether it was religious or not violated the “Look Policy” of the store. Elauf with the help of the EEOC sued Abercrombie on the grounds of religious discrimination. The U.S Equal Employment Opportunity Commission (EEOC) is an agency established by the government of the United States that imposes federal laws that make it
My company of choice for this report is Macy 's. 'The Magic of Macy 's ', as the company advertises it, has inspired me to shop there, take advantage of their incomparable discounts and great online shopping experience. Macy 's, Inc. is one of the largest department store chains in the United States of America. Macy 's manages stores under the Macy 's and Bloomingdale 's brands. I enjoy shopping at both of the company 's store brands, Macy 's and Bloomingdales. Bloomingdales provides a more personalized experience
In 2002, CEO of Levi Strauss, Phil Marineau was faced with a tough decision: whether he should sell product at Wal-Mart. In the last five years, Levi-Strauss had lost sales and had to close US plants to move production to cheaper offshore areas. Levi's really needed to revive the brand image to gain back some lost sales and was using marketing to create new advertisements and product placement to broaden their target market. Levi's had tough competition on every level of the price-point spectrum, whether it be high end retailers like Diesel or Calvin Klein, middle vertically integrated retailers like Gap or American Eagles, and on the bottom, private-label brands like Wal-Mart and Target.
The second step is very crucial because the consumer’s decision can come from their past experience or memories and also from their friend or family members. Therefore Zara has to focus to every factor and perform well in all fields. Zara has to focus on delivering outstanding customer service because it will help in increasing the number of repeat customers and if the customer’s experience is good then they will speak well about Zara to their friends and family members which will help in increasing the number of new customers. Zara also need to make sure that its other factors of outside environment such as fashion blogs, advertisements, magaz...
The business model that sets Zara apart from other clothing retailers is how rapidly the company changes stocks and releases new product lineups. The company averages 12-16 collections annually which equates to more than one lineup a month. Due to stock being limited and the rapid production Zara brings forth, their items are viewed as exclusive promoting further business. Their customers are happy knowing that their specific article of clothing is more “rare” due to only having an average of a two-week window to purchase the clothing. The company specifically targets current trends and has them in the store within 30 days. This maintains the brand’s uniqueness and relativity in fashion.
Zappos strategy for delivering happiness to customers: Zappos adopted the unique strategy for delivering happiness to the customer that describes below:
store managers and frontline personnel, play a critical role in the context of Zara’s business model. Using customised PDAs, store managers constantly communicate customer feedback, either hard data such as orders and sales trends or soft data like customer reactions to a new style or the “buzz” around a new design, to Zara’s HQ where the feedback is used by designers to quickly develop new garments based on customers’ wishes (Ferdows et al., 2004). Frontline employees assist their superiors in collecting the feedback. Zara’s store managers and shop assistants thus close the communication loop between shoppers and Zara’s HQ (Ferdows et al., 2004) and therefore contribute hugely to Zara being able to first understand what customers like and then design and produce it (Buck, 2014). Accounting for their key role, Zara pays store managers an above-average salary and up to 100% of their salary in bonuses if they hit sales targets (Ruddick,
The growth of the service sector in recent decades has been referred to as “a wonder of human history” and commensurate to both the agricultural and industrial revolutions alike (Spohrer and Maglio 2008, p19). It cannot be denied that technological advancements have played a vital role in this dramatic evolution. Technology has not only transformed the nature of services but also the means in which firms connect with their customers (Zeuthaml and Bitner 2000). It has enabled the development of new services, created new means of delivering services and has facilitated customers and firms to receive and administer improved, more accessible, efficient and customized services (Wang et. al 2013). Developments in communication technologies and most notably the internet have removed the traditional boundaries of geographical location and time and even created a whole new previously unimagined virtual marketplace; “the marketspace” (Bhakkad and Patil 2014). Although these vast technological advances have undoubtedly had a positive impact on the service industry, one must not be oblivious to the negative, downsides that also exist. This paper will elaborate further on the positive impacts looking at some emerging trends and also look at some of the negative impacts and how firms must be aware that technology is not an automatic recipe for success. The paper concludes with a quote from American writer Irene Peter “just because everything is different doesn't mean anything has changed” looking past these technological advancements and the transformation of the service sector, one thing remains unchanged; customers still want their needs and expectations to be satisfied from their service encounters in whatever form they come (Bitner 2001).
Business strategy and model: Zappos.com had a differentiation strategy with which they had differentiated themselves from the rest of the market. They had use a unique corporate culture in their company which was one of the major competitive edges of the company. According to the CEO of the company, Tony Hsieh, that everything that they had done at Zappos such as their relationships with 1,200 to 1,500 brands, policies and website style could be copied, however, the only thing that no one could copy from them was their unique culture. Zappos had 10 unique core values as a basis of their company’s culture, employee performance and their overall operations. They were hiring and firing people on the basis of their abilities that whether they were living up to these core values or not.
Wal-Mart Stores, Inc. is a renowned retail goods superstore that sits atop the Fortune list at number one. It would be very difficult to find an individual who is unaware of Walmart’s position as the largest brick-and-mortar retail chain in the world. The company has thrived over the past few years and is continuing to grow by effectively managing its store operations and distribution strategies. One of the major contributors to the business consistently meeting market expectations is directly attributable to their management approach. Walmart has revolutionized the way retail companies manage their supply chains in more ways than one. But, perhaps the most revolutionary was the practice of unprecedented coordination with suppliers (Chekwa,
This customer is likely to be educated, married, and a parent. She is referred to by the company as the ‘happy hunter’.” This target market is mostly focused on the online footwear shoppers; however Zappos recently expanded their product line to apparel, accessories and even home goods therefore expanding their target market significantly. According to the official website Zappos carries “more than 1,500 brands of shopping products shoes, apparel, handbags, and housewares categories.” Their target market is not price sensitive in fact customers are willing to pay a higher price for the excellent service the company
The collaboration and carefully connected network was consistent with a culture that allowed the retail kingdom to remain flexible, profitable, and prosperous for two decades (Mehrmann, 2009). Their 4S business model – service, selection, savings and satisfaction where the customer has a choice of wide variety of merchandise, received 110% back if they found a better deal, 30-day money back guarantee and the customer service of high trained sales professional help the company establish a competitive advantage. Their point-of-sale systems facilitated quick transactions and took care of their inventory (Wells
Therefore their consumer promise is also the force behind the combination of their environmental and preservation guidelines used through the group 's supply chain. Zara, has been a groundbreaker in conveying new fashions, new designs, and new ideas rapidly to its stores. Zara’s tenacious thrust of on-trend products into the supply chain channel keeps its stores in stock on the latest fashions at lucrative prices. Lots of their new concepts have come from some of the fashion shows that just ended in New York, Paris and Milan will soon be on Zara’s racks.