Strategic Analysis Of Zappos.com : Strategic Analysis

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Strategic Analysis of Zappos.com
Zappos.com, established in 1999, has rapidly become a strong competitor in online apparel and footwear sales. With the original corporate vison of offering the absolute best selection in shoes; the vision has evolved over the past several years to include the goal of being the retailer that “provides the absolute best service online -- not just in shoes, but in any category” (Zappos, 2014). The online retailer stocks millions of reasonably priced footwear products; carrying thousands of hard to find brand named shoes, handbags, apparel and accessories via the company website and 7,000 affiliate partners. In recognizing their rapid success, Zappos credits it to their commitment to the customer, stating,
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In 2008, Zappos reported annual revenues exceeding $630 million; and in 2009, the company celebrated its 10th anniversary by reaching $1 billion in annual sales (Twitchell, 2009).

Problem Statement
Zappos has successfully shaped a one-of-a-kind culture to which it owes its success. While there is not a true “problem” with Zappos.com; the company realizes significant growth potential. Sister company, Amazon.com, recognizing the asset of the renowned customer service Zappos has formed, has approached the Zappos management team with discussions of a potential acquisition.
The management team at Zappos must analyze and carefully determine which path will ultimately offer the best growth potential for the company as a whole; whether that is continuing business as usual by remaining independent, or successfully merging with Amazon.com.

Strategic Analysis Tools
As the management team at Zappos analyzes and makes careful determination of which path offers the best growth potential for the company, the following strategic analysis tools will be used for consideration:
• SWOT Analysis
PEST Analysis
• Boston Consulting Group (BCG) Matrix
As Zappos faces the challenge of determining next steps in regards to maintaining the existing business unit or to enter a new business venture, the SWOT analysis will provide clarity in the firms Strengths, Weaknesses, Opportunities, and Threats. This is an extremely suitable

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