Zappos Case Essay

Zappos Case Study

Question 1

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What is the business of Zappos and what are its critical success factors (CSF’s)? Sells shoes online to meet the demanding needs of serious shoe shoppers Uses eCommerce for the transaction between business to consumer Stocks vast inventory of all makes, styles, colors and sizes Fast and efficient delivery service

Fun, new innovative company

Question 2

Please complete the following table. Identify the key information systems and the related IT infrastructure investments that enable Zappos’ core business processes:

Core Business Process
Information Systems
IT Infrastructure
Supplier Management
Customer orders processing system
Customer returns processing system
Procurement system
Online, eCommerce platform
Supplier extranet
Sales/Order Processing
Computers (Web 2.0)
Order Fulfillment and Distribution
Supply Chain Management
Inventory System
Shipping management

Web 2.0
Supply Chain Management Logistics and Warehousing
Use of LAN’s to communicate
Customer Servicing
HR system
twitter, blogs
fast, accurate order filling
employee calls, not scripted or predefined responses
Phone calls (land lines)
Human Resources Management
Employee management
1,600 workers

Question 3

In what ways does the design of Zappos’ Web site and related services support its business objectives? Quick and easy to use
Huge selection online, all available from the warehouses 4 days after ordering Fast response time
Fun and cool look
Can be personalized

Question 4

Why did it make sense for Amazon to acquire Zappos? What expertise in terms of information management and the use of IT did Amazon bring to the game
that might improve Zappos’ eCommerce competitiveness? Amazon is strictly online

Bigger company has more resources to deliver customers’ products Zappos would be a competitor of Amazon’s because they both sell products online Better IT systems that could be integrated with Zappos

Less expensive for Zappos
Amazon understands online business procedures