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 agents the authority to do anything to make the customers feel welcome and wanted.

Some competitors undercut Zappos through cost leadership. The recession in 2008 led to a shift in consumer buying patterns. Customers order multiple shoes to try them on and return the shoes they do not want leading to high shipping costs. Zappos developed a system that does not display a product that is out of stock. They could not develop an efficient solution to scheduling deliveries or Less than Truck Load deliveries. Zappos has not made international expansion a priority due to the high cost of setting up a call center and distribution center in each country.

By segregating the market through different websites, Zappos can retain its customers and…
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