Case 1:
Zappos Online retailer.
Executive summary:
This paper includes a study about Zappos Online Retailer Company. The purpose of this study is to do a detailed analysis of the current situation of this company and the service issues that they are facing in order to find solution to reach their goals.
This paper starts by the introduction and the background of Zappos Company following with a SWOT analysis of their current situation; it also includes the service marketing mix strategy that they are adopting. It also covers some of the studies and journals that discuss some issues that may face the online shopping retailers. As a result of this analysis we put some recommendations that may help the company to provide better service to their
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Economical recessions like what happened in 2008 which result of lay off 8% of their employees. Political and legal issues: such as taxes.
Problems facing Zappos:
1- The competitors: other online stores and the physical stores.
2- Continuing rapid growth: which needs special and tough service management
3- Decrease in the cash flow as a result of crises, high leasing and shipment costs.
Internal Strength:
Organization culture, Customer service, Variety of products, Price, fast delivery, 24/7 customer service Weakness:
Competitors, Large inventory , High shipment cost ,High staff cost
External Opportunities:
Increase cross category sale, penetration ,customer convenience Threats:
Taxes, recession, crises, relevance on internet providers.
Service marketing mix: The 7 P’s
As service is not a tangible addition of the extended 3 Ps must be considered which are the process, people and physical evidence. (Lovelock, Dargy 1382).
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This issue happened to Zappos as their clothes line did not succeed when they entered it. Also this journal showed that the wide variety of the products offered on the online sites will bring the store to the shoppers rather than customers to the stores in which will increase the sales. This what was though by Zappos management as they were only a shoes retailer and then they start to offer many lines to achieve the variety.
Recommendations for Zappos Company:
From this case analysis noticed that Zappos Company succeeded in recognizing and closing any service gap by offering a unique customer service due to their excellent company culture, professional people which yielded to have loyal satisfied customers. And we can see this from their high sale in each year. However in 2008 they faced a bad financial crises which lead to decrease there cash flow, fire 8% their staff . Also there fast growing plans contributed on this.
By their Excellent service record and putting the customers as their first priority they overcome all those problems and becoming one of the best online shooping retailers.
Some recommendation from this analysis:
• They have to keep focus on the service they are
* From the e-Activity, analyze the role that customer service plays and determine the service management skills at Zappos. Evaluate the different way(s) that Zappos creates a superior customer service.
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