Essay on Developing Supply Chain to Deliver Wow

2762 WordsFeb 1, 201312 Pages
Zappos.com: Developing Supply Chain to Deliver WOW Strategic Management of Operations Prof. Saibal Ray By: Jaycie Zhang Xinqi Wang Arturo Cabezudo Maria Campos Juan Carlos Neira Executive Summary Zappos.com is a privately held online retailer with an extensive product category mainly including apparel, footwear, handbags, and watches. Headquartered in Nevada, it primarily operates in the US with about 1,300 employees and revenues mounting to $635M in 2008. Thanks to its strength in offering an outstanding customer shopping experience and strong corporate cultures and values related to customer service, it was the largest online shoe retailer in 2008, with a positive growth outlook. However, in the face of possible economic…show more content…
Zappos is always looking for new ways to WOW every customer and always treat every employee like family. The employees consider Zappos a fun place to work. In addition, Zappos` commitment to customer service satisfaction is clearly demonstrated by their value propositions and represents their core differentiation strategy. These are free shipping, guaranteed 5 day delivery (WOWing the customer, where 49% of customers will receive their product within 2 days), a 365 day return policy and 24/7 customer service. Unique Products and Innovation - The core products that Zappos offers are designed to be distinctly different from the traditional shoes available in brick-and mortar stores. Zappos provides customizable product models and extensive product information to customers. For example, Zappos` site has a detailed discussion of gait that helps customers to determine which type of shoe is appropriate for them. Weaknesses - Presence Limited to Online Market - Although there are many online shoppers today and the number is still growing, Zappos is unable to reach the majority of retail shoppers by only having the online outlet channel. Relatively Low Profit Margin - The revenue of Zappos in 2008 is $635 million, but the company policy on product returns makes up 35% of gross sales. This is definitely crippling Zappos profits. High Dependency on UPS - Until 2008, Zappos has only one call center in Las Vegas and one distribution center in

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