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By: Matthew Hindy
Arthur Grey
Swithin Murickal
Stephanie Haertling
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
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
Internal Factors Evaluation
•   Strengths Outweigh Weaknesses
•   Ten Core Values
•   Zappos Derived from Customer Service
•   Given a 3.71 Market Rating




                                           Matthew
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
Financial Analysis




                     Swithin
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
Internal/External Matrix
• Zappos should GROW the business
 ▫ Has strong market share
 ▫ Assets will create power
 ▫ Stay strong with foundation & culture




                                           Matthew
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
TOWS Matrix




              Swithin
Quantitative
Strategic Planning




                     Swithin   n
Final Recommended Strategy

• Move Beyond Shoes & Apparel
 ▫ Continue with Strong Foundation
 ▫ Compete with Amazon and eBay
 ▫ Sustain Competitive Advantage




                                     Matthew
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
Stephanie
Stephanie
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
•   Free Lunch
•   Pet insurance
•   Paid time off to volunteer
•   Monthly team outings
•   Carpool program
•   Nap rooms
•   Ex: Conference Rooms




Stephanie
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
Product Structure (Actual)
                  Merchandising – Steve Hill




New Arrivals   All Products        Gift Ideas   Clearance




       Men         Women          Kids




                                                            Swithin   n
Product Structure (Proposed)
                        Merchandising – Steve Hill




    New Arrivals                All Products                             Clearance



                                                  Gift Ideas   Coupons

Latest       In-stock
Trends

                          Men   Women          Kids




                                                                               Swithin   n
Product Positioning Map




                          Stephanie
Proposed Product Positioning Map




                             Stephanie
Target Market
 • Online Shoppers
 • Current Customers
 • Diversity




Stephanie
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
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
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
Questions?
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.
• 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

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Bus 189 final zappos powerpoint

  • 1. By: Matthew Hindy Arthur Grey Swithin Murickal Stephanie Haertling
  • 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
  • 10. TOWS Matrix 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
  • 23. Target Market • Online Shoppers • Current Customers • Diversity Stephanie
  • 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