Management Of Information Technology And Information Systems

3409 Words14 Pages
Zappos.com: Developing a Supply Chain to Deliver WOW! Orhan Bahtiyar Morgan Kaschak Nitya Kotharu Saily Mahangade Benjamin Wu Shuting Zhang Prof. Brabazon Management of Information Technology and Information Systems July 10, 2015 I. Executive Summary Zappos introduced a brand new business model that revolved around retaining a customer rather than spending money for new customers. Zappos had to ensure control over the delivery mechanism so they could “WOW” their customers with excellent service and delivery. They maintained their own inventory and warehouse, and developed an inventory management system. Zappos business strategy is to differentiate itself by offering an unparalleled customer service. Zappos gave call center…show more content…
Zappos should develop a price comparison tool. They should customize the website for each customer and provide exclusive recommendations and promotions. Zappos should develop International distribution centers for the the lower cost of labor and infrastructure. Zappos could form an alliance with Amazon to use their infrastructure. Zappos can offer offer discounts if a customer chooses a delayed shipment. II. Overview For a team of two men to single handedly turn a seemingly trivial and inapplicable business idea into a company that has been consistently ranked among the best companies to work in the United States, and manage to turn Las Vegas into a dream destination for startups in such a competitive market is no easy task. Yet Tony Hsieh and Alfred Lin did just that and their business strategies, which turned Zappos into a successful company with two billion dollars in annual sales, provide a rather interesting perspective towards making and maintaining a business as both a “fun” and profitable venture. Like most startups, Zappos started with a rather radical idea. In 1999, Nick Swinmurn realized that there was no easy way to find a shoe that matched the right size, shape, color or style that he had in mind. For someone who did not have the proclivity for shoe shopping, it struck him that there must be many more who faced a similar conundrum. Thus, he created an online portal to help users choose from a plethora of options to buy new shoes. To fund his
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