This document contains an analysis of Zappos, including its competitive profile compared to Footlocker, eBay, and Bluefly. It evaluates Zappos' external opportunities and threats, and internal strengths and weaknesses. Zappos receives strong ratings for customer service, culture, and financial position. Strategies proposed include expanding product categories and locations. Metrics like the balanced scorecard are suggested to connect activities to Zappos' vision and evaluate strategies.
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Analyzed Amazon.com Business Structure. EFE Matrix, IFE Matrix, IE Matrix, SWOT Analysis, Quantitative Strategic Planning Matrix, Recommended Strategy, Organizational Structure, Organizational Culture, Product Positioning Map, Target Marget, Strategy Evaluation Report.
I gained knowledge and experience to consult for Strategic Business Management. I am very interested in mergers and acquisitions.
Business to Business eCommerce in the Amazon eraRafel Mayol
The impact of B2C e-commerce of the Amazon.com era in the B2B environment.
Differences, products suited for B2B eCommerce, strategies and limitations of B2B eCommerce.
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Analysis regarding three issues (Website, Audience, and Media) and two recommendations (Improved Website and Blogger Partnership) that will drive traffic to Zappos.com.
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Developed potential marketing strategy for Amazon upon tentative lifting of FDI restrictions in the Indian marketplace.
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Analysis regarding three issues (Website, Audience, and Media) and two recommendations (Improved Website and Blogger Partnership) that will drive traffic to Zappos.com.
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It’s important to understand the potential impact that a new disruptive technology might have on the marekt. The role of the Market Opportunity Analysis (MOA) is to help guide the process of better understanding of the most important market segments, how fast the opportuity is growing, what are the key sustainable differentiations and why are these important. Finally, the purpose of the MOA is to, on one hand, describe the key value propostions and to profile the most important use cases and how best to acquire customers.
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Presentation that I gave at Agile Australia 2012 in Melbourne, and at Agile Encore 2012 in Auckland.
Agile, Lean, Kanban, DevOps, Continuous Delivery! Fundamentally, all these methodologies are predicated on effective system and culture change. They require people and teams to work together to negotiate outcomes, remove inefficiencies, and deliver great business outcomes.
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
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Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
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2. Competitive Profile Matrix
• Compares firm with major competitors
• Measures critical success factors
• Three main competitors:
▫ Footlocker
▫ Ebay
▫ Bluefly Inc.
• Footlocker’s total weighted score of 3.35
• Ebay’s total weighted score of 2.95
• Bluefly Inc.’s total weighted score of 2.20
Arthur
3. External Factors Evaluation
• Assessment of current business conditions
• Measures Opportunities and Threats
• Zappos Opportunities:
▫ Growing popularity of name brand shoes
▫ Expansion through acquisitions
▫ Growing e-commerce sales
• Zappos Threats:
▫ Dependent on vendors
▫ Strong competition
▫ Economic downturn
Arthur
4. Internal Factors Evaluation
• Strengths Outweigh Weaknesses
• Ten Core Values
• Zappos Derived from Customer Service
• Given a 3.71 Market Rating
Matthew
5. Internal Factors Evaluation
Internal Factors Weight Rating Score
Internal Strengths
Superior Customer Service 0.15 4 0.6
Importance of Culture 0.12 4 0.48
Benefits of Refund Policy 0.12 4 0.48
Family Environment 0.12 4 0.48
Strong Financial Position 0.12 4 0.48
Growing Company 0.14 3 0.42
Solid Market Position 0.15 3 0.45
Internal Weaknesses
No Retail Stores 0.6 2 0.12
Worn/Damaged Product 0.2 1 0.2
Total 1 (1-4) 3.71
Major Weakness (1), Minor Weakness (2), Minor Strength (3), Major Strength (4)
Matthew
7. Internal/External Matrix
Strong Average Weak
4.0 - 3.0 2.9 - 2.0 1.9 - 1.0
High
4.0 - 3.0 Grow* and Build
The
Medium IFE
2.9 - 2.0 Hold and Maintain Score
3.71
Low
1.9 - 1.0 Harvest or Divest
The EFE Total Score 3.03
Matthew
8. Internal/External Matrix
• Zappos should GROW the business
▫ Has strong market share
▫ Assets will create power
▫ Stay strong with foundation & culture
Matthew
9. Top Three Strategies
• Increasing the number of physical locations
▫ Multiple warehouses over the country
▫ Multiple offices affiliated with Amazon
• Introduce latest fashion trends
▫ Using the product-differentiated approach
▫ Sales regardless of higher prices
• Expand product range
▫ Market for electronics
▫ International brands like French connections and
united colors of Benetton
Swithin
12. Final Recommended Strategy
• Move Beyond Shoes & Apparel
▫ Continue with Strong Foundation
▫ Compete with Amazon and eBay
▫ Sustain Competitive Advantage
Matthew
13. SWOT Matrix
Strengths Weakness
Effective Communication Small Amount of Locations
Innovation No Price Comparison
Online Growth
Loyal Customers
Pricing
Unique Products
Customer Service
Great Shipping
Strong Brands
Unique Company Culture
Opportunities Threats
Innovation External Changes
Online Product Substitution
Takeovers Acquisition by Larger Companies
Matthew
16. Organizational Culture
1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and A Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships With
Communication
7. Build a Positive Team and Family Spirit
8. Do More With Less
9. Be Passionate and Determined
10. Be Humble
Stephanie
17. • Free Lunch
• Pet insurance
• Paid time off to volunteer
• Monthly team outings
• Carpool program
• Nap rooms
• Ex: Conference Rooms
Stephanie
18. Product Structure (Actual)
Develop Vendor
MERCHANDISING Relationships, Purchas
‘NO TITLE’
STEVE HILL e Products, introduce
FRED MOSSLER
New Brands
CFO and COO Finance and
CHRIS NIELSEN Fulfillment Operations
Software Quality
CTO Assurance, Website
ARUN RAJAN Troubleshoot, Hardware
Vendor Agreement
Repair
CEO: TONY
Contracts,
HSIEH LEGAL Brand/Property
MILLIE CHOU intellectual issues,
Corporate governance
issues
PROD., EDW and
ANALYTICS
JENEEN MINTER
Technical Management,
ENGINEERING
New Prod. Development,
BRENT CROMLEY
JAVA Architecture
Recruiting, Benefits
Human Resources and Employee
Relations
Swithin n
19. Product Structure (Actual)
Merchandising – Steve Hill
New Arrivals All Products Gift Ideas Clearance
Men Women Kids
Swithin n
20. Product Structure (Proposed)
Merchandising – Steve Hill
New Arrivals All Products Clearance
Gift Ideas Coupons
Latest In-stock
Trends
Men Women Kids
Swithin n
24. Target Market Description
• Geographic: United States
• Age: Young and older adults, male and female
• Occupation: Students and professionals
• User status: Regular or first time user
• Usage rate: Light- medium
• Loyalty status: Strong
• Attitude towards product: Positive
Stephanie
25. Rumelt’s 4 Criteria
• 4 Criteria for evaluating business strategies
▫ Consistency
▫ Consonance
▫ Feasibility
▫ Advantage
• Zappos has enacted long-term financial growth strategy
▫ Improve customer service
▫ Faster delivery to customers
▫ Free exchange for up to a year
▫ Pay all medical and dental costs of all employees
Arthur
26. Strategic Evaluation Report
Balanced Scorecard
• Used to connect business activities to vision statement
• Must know 3 key components of Zappos:
▫ Strategic Plan
▫ Mission
▫ Vision
• Contains four perspectives:
▫ Financial
▫ Internal business processes
▫ Learning and growth
▫ Customer
Arthur
28. Sources
• Bryant, A. (2010, January 9). Tony Hsieh of Zappos -
Celebrate Individuality - NYTimes.com. NY Times
Advertisement. Retrieved April 29, 2012, from
http://www.nytimes.com/2010/01/10/business/10corner.ht
ml?pagewanted=2&_r=1
• Chapman, Alan. “The Balanced Scorecard Tool in Strategy
Evaluation Process.” Advanced Performance Institute: 04
May 2012.
• Graedal, T.E., Braden Allenby. “EFE Matrix: External Factor
Evaluation.” New York: 2003.
• Kainzbauer, W. “CPM: Competitive Profile Matrix.” New
York: Munchen Press, 2011.
• Parker, Jeffrey. “Rumlet’s 4 Criteria Model.” University of
Delaware: 05 May 2012.
29. • Unknown. (n.d.). Zappos Family Core Values | about.zappos.com. Home |
about.zappos.com. Retrieved April 29, 2012, from http://about.zappos.com/our-unique-
culture/zappos-core-values
• Unknown. (n.d.). Our Benefits | about.zappos.com. Home | about.zappos.com. Retrieved
May 5, 2012, from http://about.zappos.com/jobs/why-work-zappos/our-benefits
• Unknown. (n.d.). Zappos Meet-Our-Monkeys. Home / about.zappos.com. Retrieved may 4,
• 2012. from http://about.zappos.com/meet-our-monkeys/tony-hsieh-ceo
• Unknown. (n.d.). Zappos Family Core Values / about.zappos.com. Home /
about.zappos.com. Retrieved May 4, 2012, from http://about.zappos.com/our-unique-
culture/zappos-core-values
• Unknown. (n.d.). eBay Inc.’s Global Portfolio of Businesses. eBay Marketplace-Who We
Are.Retrieved May 5, 2012. from http://www.ebayinc.com/who
• Unknown. (n.d.). Meet Zappos Family / about.zappos.com. Zappos Inc. /
about.zappos.com.Retrieved May 4, 2012, from http://about.zappos.com/meet-zappos-
family/zapposcom-inc
• Unknown. (n.d.). Amazon.com Inc. Annual Data. AMZN Balance Sheet. Retrieved May 4
2012.from http://finance.yahoo.com/q/bs?s=AMZN+Balance+Sheet&annual
• Unknown. (n.d.). Bluefly Inc. Annual Data. BFLY Balance Sheet. Retrieved May 4
2012.from http://finance.yahoo.com/q?s=BFLY&ql=0