Zappos.com Developing A Supply Chain To Deliver Wow Case Analysis – Article Example
Zappos.com, the company billed as the world’s largest online retailer of shoes, was established in 1999 by Nick Swinmuryn. The rise of the company began at the advent of the internet boom via an innovative concept of online selling of shoes. The chief objective of the company was to offer a wide variety of shoes in terms of sizes, brands, colors and styles. To accomplish this, the management strategy was aligned towards supply chain management that delved on; call centre service, supply chain, recruitment, website, culture and inventory. The chief motive of these core business aspects was to ‘wow’ the clientele that were engaged with the company. In this regard, the company experienced exponential growth through net profitability from sales to the tune of $650 million. Moreover the company witnessed a growth in its repeat customers from 40% to 75% in 2004.
The fundamental factors within the supply chain management via a decision tree that have contributed to Zappos success can be broken down as follows; foremost; is the company culture of providing a ‘wow’ experience to clientele. Second, is the availability of a well staffed labourforce within the call centre that ensures calls are responded to within 20 seconds. Third, the website offers convenience to the clientele through its fast speed. In addition, the addition or variety of products offered provides another strongpoint withint the supply chain management. In this regard, the company increased its range of products to cover not only shoes but also house ware, jewelry, electronics, sport ware, luggage and clothing. The evolution of the operational model for the company such as the inventory system, delivery system and web system is another key factor for the company’s growth.
"Zappos.Com: Developing a Supply Chain to deliver WOW!." Stanford Graduate School of Business 1.2 (2011): 1-28. Print.