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Get Full Essay Get access to this section to get all help you need with your essay and educational issues. It is still very promising for online retailors to expand its customer base.
Consequently, more and more high-end brands are eager to partner with online retailors such as Zappos. But, with the collapse of the financial markets and economic slowdown, customers are more cost-conscious and have higher expectations for the services—they are much more difficult to be delighted.
Meanwhile, in such a bad economic time, labor-intensive activities might eventually become unaffordable. As to the international market, business expansion faces a lot of challenges, such as high cost of operation and culture conflicts.
One of the challenges facing Zappos is lacking of capital. Limited budgets make its labor-intensive activities and high-standard delivery become more and more unaffordable.
The growth rate is also gradually slowing. Besides, according to the Income Statement, Zappos has the lowest operating income percentage 3. Cut service cost such as stop next day air shipment to maximize profit. As long as it remains free return service, the company would not lose its cost-conscious.
Cut the service workforce could save a lot. Improve the inefficient supply chain to save cost, and filing for IPO as well. Recommendation I think Zappos should improve its supply chain to save unnecessary costs and then file for IPO to generate the capital needed to expand.
Given a huge untapped customer base in domestic market, it is unnecessarily for Zappos to expand its current business into international market.
As customers are also become more and more demanding, discounted service would probably make Zappos lose its core competencies, and eventually its customers. The third choice is applicable, I think, for it could broaden the sources of income and economize on expenditures, helping Zappos remain competitive while maximize its profit.
To streamline its supply chain, Zappos could cooperate with channel partners to build a rapidly updated online system, through which all of its supply web members, could share the order and inventory information.
Since Zappos is the largest online retailer and more high-end brands are eager to partner with the company, it could charge for members joining, and building the online system together. Through the system, even the manufacturers in China could ship the products to Zappos distribution center or directly to the customer who placed the order.
As for going public, the financial benefit in the form of raising capital is the most distinct advantage, since Zappos has always been intensely conscious of funds. Another advantage is an increased public awareness, because IPOs often generate publicity by making their products known to a new group of potential customers.
Of course, file for IPO is not without risk. The management team should be aware of profit-oriented venture capitalists, and it should not do any questionable practices to boost earnings. The company should never save its cost at the expense of service.
In such a cost-conscious environment, the company must seek for efficient supply chain to lower cost and insist on finding new ways to serve more demanding customers, and eventually lead to the maximized profits.Subscribe now and save, give a gift subscription or get help with an existing subscription.
Zappos - Developing a Supply Chain to Deliver Wow Case Zappos Developing a Supply Chain to Deliver WOW! Core Competencies Zappos is a prime example of a company’s end products (the goods sold) not corresponding to their .
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Developing Market Specific Supply Chain Strategies by Gian Andrea Manzoni Business Operations: Systems Perspectives in Global Organizations Walden University 14th June Developing Market Specific Supply Chain Strategies In today’s business environment, companies have to deal with demand volatility and cost reduction.
by admin September 9, July 19, Leave a Comment on rutadeltambor.com – Developing a Supply Chain to Deliver Wow! Essay Sample Essay Sample Zappos. com provides extended online merchandises. delicate call-center service.
free and rapid bringing. and at the same clip. it keeps optimising its operational theoretical account. Misc thoughts, memories, proto-essays, musings, etc. And on that dread day, the Ineffable One will summon the artificers and makers of graven images, and He will command them to give life to their creations, and failing, they and their creations will be dedicated to the flames.
Supply chain management: Its supply chain management allows Zappos to provide outstanding service to its customers, primarily in the sense of fast delivery, while at the same time operating as efficiently as possible. With regards to serving customers and being efficient at the same time, Zappos realized early on the importance of a . Latest environmental news, features and updates. Pictures, video and more. rutadeltambor.com: Developing Supply Chain to Deliver WOW Strategic Management of Operations Prof. Saibal Ray By: Jaycie Zhang Xinqi Wang Arturo Cabezudo Maria Campos Juan Carlos Neira Executive Summary rutadeltambor.com is a privately held online retailer with an extensive product category mainly including apparel, footwear, .