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Zappos

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Aliza Rizvi

22010100

1. What are Zappos’ core competencies and sources of competitive advantage? How
sustainable are they? What role does corporate culture play? 6 points

The source of competitive advantage of Zappos’ is the wow factor that they deliver to the
customer through their detailed website and wide options available on website than they
are available in a physical store. Zappos also believes in over night delivery. Although they
then removed this claim because they figured that when people do not expect over-night
delivery and still get it, they get “wow-ed” more.
The core competency of Zappos’ is the customer service it provides. The customers have
the option of free return within 60 days if they do not fit. Corporte culture of Zappos is
decentralized and expects employees to self govern and go extra mile for customers
regardless if they make any sales or not.

2. Compare Zappos with Daraz with respect to their concept, customer value proposition,
and capabilities? How are their operations strategies different? List at least three
differences. 9 points.
Zappos and Daraz operation strategy is different in a way that Daraz do not go beyond its
comfort to support customer. It follows a three kind model, drop shipping etc whereas
Zappos started keeping their own inventory when drop shipping failed. Zappos’ strategies
are also different culturally as they have hierarchy of purpose statement.

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