Zappos A Shoe Revolution PATRICK AMARA HUNG JUSTIN SPENSER Zappos: How is it different? 24/7, 365 return policy Houses its own inventory, no middle man
Sells the most brands and styles anywhere for shoes Focus on customer service Sites Features www.zappos.com History/Background Nick Swinmurn
ShoeSite.com in 1999 All colors, sizes and styles shipped anywhere Tony Hsieh CEO and Co Founder in 2000 Investment through Venture Frogs History/Background 1999 Shoesites.com begins, offering 50 brands 2000 Changed name to Zappos.com Venture frogs invests 1.1 million
Best Strategy is selection and service Swinmurn 2001 Largest shoe retailer Acquires 100,000 sq ft warehouse 2003 Zappos sales top $70 million, while other box stores attempt to sell online 2004 Inventory grew from $5 million to 13 million that year 2008 offering over 1200 brands in 200,000 styles with over 900,000 unique UPCs 2009 Amazons Purchase of Zappos for 10 million shares and $40
million in cash and restricted stocks to employees for a total of $928 million Brand Culture Zappos successful because of its employees 3 steps to create brand culture Figure out your core values Commit to your core values Hire and fire based on your core values
Core Values Deliver WOW through service Embrace and drive change Create fun and a little weirdness Be adventurous, creative, and open minded Pursue Growth and Learning Build open and honest relationships with communication Build a positive team and family spirit Do more with less
Be passionate and determined Be humble Training 5 week training course for all new hires. Main focus: Customer service No scripts Peer evaluations done by ability to Inspire and live Zappos
Employee and Community Projects 18 Different employee blogs CEO & Coo, Parents, Health and Fitness, Technology, DIY etc Community Service Projects every month, sometimes twice. Oct: 7th annual goodie two shoes 7000 pairs of shoes to 1500 children at 14 local boys nd girls clubs
February: Zappos Fulfillment Center, ZFC, raised $5,785 for the Special Olympics What competition does Zappos have? Brick and Mortar retailers
Payless Shoes Foot Locker Various Department Stores Other Online Retailers -- Shoes.com -- piperlime.com -- Online Manufacturer Outlets What does Zappos share in common with its competitors?
Free shipping and returns. Organized internet-based user interface. Similar checkout procedures. What makes Zappos different than its competitors? Zappos has more brands in stock than its competitors (1,037 in total). Warehouse location gives it competitive advantage.
A unique and effective customer service experience available 24/7. Zappos Model of Success Large selection. User friendly shopping interface. Warehouse capable of moving goods quickly. No shipping costs or return costs. A focus on customer service. Zappos strives to make people the most
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