Marketing Analysis Of Owns A Stable Source Of Competitive Advantage By Producing Its Own Shoes Line

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1 – Executive Summary owns a consistent share of shoe buyers’ market and maintain a solid and prominent position in online retailing. Although the numbers suggest that the company serves the US market like no other company, an expansion of its current share should be considered. Even thou the investments that this would require, we agree that Zappos could expand and build a stable source of competitive advantage by producing its own shoes line, followed in the future by it’s own shoe related wear line.

The main issue regarding the expansion of online market and the low barrier at the entrance that characterize the e-business is that many other shoe resellers and low cost companies accessed the market, raising the level of competition. As cited on the provided case, an increasing number of users gets to Zappos by using referral provided by Google, right after having compared the prices of the online shops for the same article. At the same time, Zappos has few possibilities to low down the prices over a certain point, has it has to buy from Nike, Adidas, and all branded producers that impose most of the price. In the final retail price Zappos has to include the high costs on customer service, shipping and overall experience; all these factors combine and most of the time exceed the prices offered by low cost resellers, which give up the quality of the service in order to be able to offer low prices.

Having a self made shoe line would be a solution for both of
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