Company Profile Of Nick Swinmurn Company

1372 Words Dec 9th, 2014 6 Pages
Nick Swinmurn founded Zappos in 1999 after he had spent a day shopping for shoes in San Francisco. After browsing online, Swinmurn chose to quit his job and start a shoe website that offered the best service and best selection. The website was originally called and it started as a middleman, transferring orders between suppliers and customers but not holding any inventory (a “drop ship” strategy). The website was eventually renamed Zappos, in reference to the Spanish word for shoes (zapatos). In 2000, entrepreneur Tony Hsieh was chosen as the company’s CEO. At 26 years old he was an early investor in Zappos, already making $265 million by selling his startup company to Microsoft in 1998.
Tony wasn’t initially sold on the concept of an Internet shoe store. He notified Inc. magazine, “It sounded like the poster child of bad Internet ideas…but I got sucked in.” After Tony became CEO he made an unconventional decision to continue operating Zappos, even selling his San Francisco loft to afford a new warehouse and once making his salary at just $24. Zappos didn’t do well for its first few years, making sales but not producing a profit. The dot‐com crash made Zappos lay off half its staff, but the company eventually recovered. By the end of 2002, Zappos generated sales of $32 million but still was not profitable. In 2003, the company decided that it had to control the whole value chain in order to offer the best customer service. They made the whole value chain from…

More about Company Profile Of Nick Swinmurn Company

Open Document