Zappos Quickest Time to Market
Autor: rukiatul • February 13, 2014 • Case Study • 790 Words (4 Pages) • 1,063 Views
SP 2013 29-799-300-01
Case 2
Zappos Quickest Time To Market
There are many actions and plans Zappos has taken through out the years that has made them one of the best companies that are the quickest and most efficient to market in the world. Company culture is the main business strategy of Zappos. Their company culture gave them a competitive advantage over other companies.
Zappos has ten core values incorporated into its company culture. The first one is to deliver WOW through service. This done by giving their customers the best customer experience. Their main goal is to make their customers happy and satisfied so that they will become loyal customers. When customers are happy and satisfied, they spread the word to potential customers about how they got the best customer experience at Zappos. In order to satisfy their customers’ needs and make them happy, they have to be efficient at time to market.
In order to be the quickest to market, Zappos had to make some strategic decisions to help achieve their objectives. In the past years, Zappos inbound logistics was inefficient. The trucks coming from its vendors were less than truckload increasing their costs. In order to reduce costs, Zappos introduced its own fleet of trucks by cutting down on less than truckload.
Zappos, in the past used the drop-ship method in getting products to its customers. This method was inefficient as well. The advantage of Zappos using the drop ship method was they did not have to carry inventory and there were no carrying or holding costs involved. This business model had its drawbacks. There was no visibility along its supply chain. Zappos hardly knew when vendor shipped the product to the customer or when the order was cancelled or delayed due to stock outs or when the vendor has to fulfill a big order. Zappos was only made aware of this when the customer called their customer service to ask the whereabouts of the order. This strategy was making Zappos customers unhappy. At the end, Zappos had an agreement with UPS and they invested in a distribution center in Kentucky, thirty miles away from UPS. This made
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