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Business Case Study: Zappos's Customer Loyalty Company

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Introduction Zappos is an online shoe retailer that started its business in the year 1999. The company later expanded and increased the variety of the products of its business by adding clothing, beauty products, and housewares. The Zappos Customer Loyalty Team Case Study emphasizes on the customer service department and the initial focus the drop ship method. The company also created a brick and mortar storefront to expand the business from online only and increase sales. The management of Zappos took an innovative approach to earn their required return on investment. They emphasized their customer service and employee training programs to gain greater dividends. In addition, Zappos started to create value for its customers through its…show more content…
They created the “WOW” experience for the customers and communicated with them in an informal and unconventional way, this established a memorable and long-term connection with the customers. Zappos had developed 10 core values by taking input from their employees. Those values, along with the culture book, determined the path for making appropriate decisions and building an open and honest relationship through communication. The Zappos leadership team invested a lot of time and effort in developing their human resource. In 2008, 10 years after Zappos was established, the company sales grossed $1 billion. When the founder of the company began to sell its shoes online, the company became the leading online merchant in the world and started to grow at a fast pace and became very profitably. Further, the company had also extended the range of its product offerings in order to provide its customers different products along with enthusiasm from the employees to provide amazing service. Problem…show more content…
The management at Zappos attracts customers through exceptional service that has created a “WOW” philosophy and embedded it within the fabric and culture of the company. Zappos has several competitive dimensions in which they compete with other online retailers in the market. The company has always maintained its sales growth rate on the long-term basis at a certain output level. Therefore, the competitive advantages of Zappos have always been sustainable. The corporate culture of the company is nurtured and developed by its management team. Zappos has a very strong corporate culture. The core values of the business and its culture have a strong influence on all aspects of the business, including the company’s supply chain. Employee training and the hiring of the right employees were vital in growing and maintaining the current culture. Other competitive dimensions include the customer service training and employee development
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