Decent Essays
1. The original business model for Zappos was the drop ship model which is being the middle man (Brady, 2010). The easiest way to think about a drop ship business model is to think about your own retail web based or mail order business. In many ways they work the same. An order with payment comes in, is processed and then shipped to the purchaser. In both your retail environment and in the drop ship environment, the person receiving the package is your customer. The only difference to the customer is that in the one instance, the product is shipped directly from your location and in the other instance; the product is shipped from another location. (Steve, 2009). Over the past several years, drop shipping has emerged as the ‘go to’ strategy…show more content…
We've aligned the entire organization around one mission: to provide the best customer service possible”. At Zappos it’s all about customer service and this was and still is their main strength. Zappo is very good at applying the 4P’s with the 4 C’s that Porter talks about in our lecture. They even have an application for smart phone to make sure that their customer can buy even with their phones. With this model I believe that they can sustain their popularity and especially as long as they keep giving to their customer’s great experiences and products that they need for the best price. Last but not least, the company trains and exposes all its recruits to customer service regardless of their position. They also encourage innovation by motivating its employees to come up with passionate ideas which they go ahead and which help the sustainability of its customer service implement (Milligan & Smith, 2011).
4. Zappos’s new model that is based on loyalty and relationship marketing made the company make 1 billion $ in revenue in 2009. Zappos’s new strategy of offering not just shoes but as well introducing clothing and apparel to the site is definitely a great move knowing that the apparel market of is 4 times the size of the footwear market Zappos’s believe that in order to make its customers happy they should first make their employees happy which they are succeeding at making Zappos among the best 100 company to work for (Adriana,
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