Case: Zappos

This case examines Zappos' unique marketing strategy and corporate culture, both of which focus on delivering happiness to the company's varied stakeholders. Despite a few stumbles along the way, Zappos has been a role model of success since its founding in 1999. The company survived the dot-com collapse because its charismatic CEO, Tony Hsieh, created a corporate culture that put its customers and employees ahead of financial success. The case looks at Zappos' business model and how it influences the company's relationships with customers, employees, the environment, and its communities. The case also discusses some of the challenges the company faces and how it plans to move into the future.

1) Has Zappos' emphasis on customer satisfaction contributed to its profitability? Explain.

2) Has Zappos developed long-term customer relationships that provide a competitive advantage in the purchase of shoes and other products? Explain.

3) Zappos' management has asked you to suggest opportunities for further expansion of the company's product porrfolio.  Zappos already offers shoes, clothing, bags/handbags, home products (linens, kitchen, and dining), beauty products, and accessories. They also operate outdoor and riding (bikes and skateboards) shops. Moving beyond these product lines may require Zappos to move into hard goods such as furniture or electronics. This would compete with Amazon and IKEA. What options do you suggest and why?

375 words per question.