Zappos: Clothing, Consumer Service And Company Culture
The Case of Zappos.com 2009:Clothing, Consumer Service and Company Culture
Zappos.com, a privately-held online retailer of shoes, clothing and other soft line retail categories, learned that Amazon.com, a $19 billion multinational online retailer, was about to acquire it. Zappos started as a humble beginning in 1999, when less than even 1% of shoes were sold online. How did Zappos climbed the success ladder and become a company which Amazon would look to acquire allowing it to be independent subsidiary in Amazon is the case.The case evolves about the 3C’s that Zappos set for itself and that changes the story of Zappos in a span less than a decade.
Inspired by the low service level and variety of a shoe mall at San Francisco, Nick Swinmurn,
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They started up with selling pizza’s and later at the ages of 24 and 25, respectively, founded an advertising network Link Exchange, that they sold to Microsoft for $265 million in November 1998. Hsieh joined Zappos as co-CEO (with Swinmurn) in May 2001, as Zappos was “the most fun and the most promising” of all companies he had encountered as a venture capitalist. By year’s end, Zappos had grown to $8.6 million in gross merchandise sales. In 2002, he announced a financial goal for Zappos: to grow to $1 billion in gross sales by 2010.In 2003, Hsieh became sole CEO and Swinmurn became chairman.
Q1.What are the reasons for Zappos success in its first 10 years (1999-2009) and what are the evidences from the case supporting the success? What general, high-level strategies can you identify that lead to their success?
A.1 In 1998, Nick Swinmurn had seen a opportunity to fulfil a market need, he saw that there were no online sites where a customer could conveniently shop for footwear. He made sure that the site which he would start would be providing a large selection of footwear so that the customer would not have to visit other stores or websites. Zappos was growing at a substantial rate mainly because they were focused on three main things which were: Company culture, Customer Service and
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