Management Of Information Technology And Information Systems

3409 Words Jul 11th, 2015 14 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
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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 business and make it viable, he contacted a number of venture capitalists including Tony Hsieh and Alfred Lin, and the rest is history. To make a big splash, Hsieh and Lin incorporated revolutionary and unique methods to attract customers and expand their business. They introduced a brand new business model which revolved around retaining a customer rather than spending money to bring in new customers. They relied on the positive feedback from their existing customers to expand their business, by word of mouth. To do this however, Zappos had to ensure that they had control over the delivery
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