What strategy does Zappos use?

One of the highlights of Zappos’ Customer Service Strategy is their 365 days Return Policy. Combined with the free 2-way shipping, this takes away the customers’ risk and makes it convenient for them to order as many shoes as they want, keep the ones that fit, and return the others at no additional cost.

What makes Zappos different from other companies?

Nothing on the list is particularly unique, but what makes Zappos different from thousands of other companies is that they live those values, instead of just hanging them on the wall. “Once a company compromises too many times on its core values, the entire culture goes downhill,” says Tony Hseh.

What is Zappos competitive strategy?

Zappos massively differentiated themselves from its competition by building a culture that is customer-centric in every way imaginable. This is what has made Zappos a trusted destination for millions of loyal online shoppers (and it’s also why it was acquired by Amazon for close to a billion dollars).

How is Zappos different from a traditional business model?

Six years ago, Amazon-owned Zappos began upending its traditional management structure. In lieu of a typical corporate structure, with power concentrated at the top, the online shoe retailer would adopt a decentralized system with “no job titles, no managers, no hierarchy.”

Is Zappos customer centric?

Zappos is one of the prime examples of brands that is customer centric that has spent years creating a culture around the customer and their needs. Tony Hsieh, CEO of Zappos, is one of the shining stars of this new way of working.

Did the strategy of the Zappos work well?

The new approach was very successful, and Zappos scaled it by insourcing operations to increase efficiency and by expanding the product line to handbags, eyewear, and other clothing, to benefit from economies of scope. Today, still under the marvelous management of Tony Hsieh, Zappos sales are well over $2 billion.

Why do you think Zappos is not outsourcing its call centers?

Although Zappos wanted to outsource its call​ center, it chose not to outsource because it is a small company and the cost of outsourcing is too high.

What is the source of Zappos success and competitive advantage?

Corporate culture: Zappos’ most important source of competitive advantage is its unique corporate culture which includes and thereby enhances the other core competencies and competitive advantages.

What does client centric mean?

Client-centric, also known as customer-centric, is a strategy and a culture of doing business that focuses on creating the best experience for the customer, and by doing so builds brand loyalty. Client-centric businesses ensure that the customer is at the center of a business’s philosophy, operations, or ideas.

Why is Zappos successful?

Over the years, Zappos has learned that when you treat your customers well, you are making sure they will buy again. That “more” is providing the very best customer service, customer experience, and company culture. They have built their success on these foundations.

What is the marketing strategy for Zappos?

Zappos marketing strategy … social media. One of the earliest adopters of the use of social media for marketing and social commerce, Zappos has certainly taken a leadership position. Their social media strategy is built around their company web site and 5 additional core social platforms, including Twitter, Facebook, Pinterest, G+, and Youtube.

What is the company culture like at Zappos?

Zappos developed a set of key values that lives at the heart of their company culture. And, they rally every employee around those core values and shared purpose. Job candidates are thoroughly interviewed and screened to ensure their values match those of Zappos.

How did Zappos rise to online dominance?

At the end of the day, Zappos’ rise to online dominance really just revolves around turning an otherwise complicated shopping experience into one that feels quaint and easy. It accomplished this by setting up a strong behind-the-scenes infrastructure that puts the customer experience at the forefront.

Will other disruptors copy Zappos’s business model?

If other disruptors copy Zappos’ new managerial practices in their respective industries, many established firms that counted on a few more years to react to disruptive change might be in for a big surprise. Juan Pablo Vazquez Sampere is a professor of business administration at IE Business School.