Zappos Case Study
Executive Summary
This case study analysis is based on the 2009 case study from Stanford Graduate School of Business titled Zappos.com: Developing a supply chain to deliver WOW! It begins with the general overview of the background, philosophies and current problems faced by Zappos. This is followed by a hierarchal ranking of the four major presenting problems for the company, which are: maintaining the “wow” image without overspending, inventory management/distribution problems, transportation efficiency problems and customer behavior problems.
Each of these problems is addressed in more detail in the discussion section and the recommendations section at the end of the analysis. Prior to the conclusion and
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For example, according to Beaudry (2009)“One of the craziest stories, said Jerry Tidmore, who manages Zappos' help-desk concierge service, was that a guest checked in to the Mandalay Bay hotel [in nearby Las Vegas] and forgot her shoes. According to Tidmore, the guest called Zappos, where she had originally purchased the style, looking for a replacement, but they didn't have any in stock. So the company found a pair in the right size at the mall, bought them and delivered them to the hotel - all for free”. While this is an excellent way to gain a customer for life, if too many employees are doing things like this too often, it is going to send the company into bankruptcy. At the same time, now more than ever, when people are suffering financially, they are likely to appreciate the “above and beyond” tactics that have made the company famous.
The inventory problem is ranked second and not first because the company has already taken estimable and relatively effective measures to solve its inventory and distribution problems. As the economy continues to improve, their current system will likely be as valuable once again as it has been in the past. However there are still problems that need to be addressed, such as the need to increase overall supply chain efficiency and to deal more cost-efficiently with excess inventory.
The truck problem is third in the hierarchy because this is an easily solved problem. If a cost-benefit analysis
These companies collect information on each customer’s past transactions, demographics, psychographics, and media and distribution preferences.
G. A brief review of the academic articles and the concrete cases with similar issues/problems solved (up to 10 real references with
Second, the classification in inventory management is still inaccurate. That results in some problems such as: the severe lack of some products which are in growing demand (1 inch valve series 230), the redundancy making storage expenses go up and the stagnancy in storage area (to products like gear driven rotary and monitor controller)
The causes and implications for these issues are included in Table 1 and possible solutions are addressed
Thank you very much for your time today to interview me for the position of Customer Service Representative Trainee. I appreciate the opportunity to learn more about this job, to meet you, Ms. Kathy Lofgren, Ms. Erin, and to see your facility.
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