The Zappos Company’s Business Plan Case Study

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Our Mission

Zappos offers customers a superior online shoe shopping experience, ensuring that each shopper is provided with the best customer service experience. The Zappos family is dedicated to offering the greatest selection of footwear, clothing, and houseware to potential buyers and delivering happiness (Zappos, 2022). Moreover, the company is devoted to its employees and vendors and strives to build a close relationship with the broader community.

Our Management

Founded in 1999, the company was incepted by Nick Swinmurn and launched by Tony Hsieh and Alfred Lin, who invested in the company through the investment fund Venture Frogs. Set up as a traditional management structure, Zappos moved to a Holacracy organizational structure, choosing to switch from the hierarchy of employees to the hierarchy of work, becoming a striking example of a productive decentralized organization.

Competitive Advantage

While many online retailers offer a high-quality shopping experience, Zappos stands out due to its dedication to being customer-centric. The unique corporate culture of the company and its Holacracy philosophy and self-management organizational structure allow Zappos to be the undisputed leader in the online shopping services industry. In addition, the company has a broad and loyal vendor base translating into a wider range of products.

Financial Projections

Based on the size of the market and the defined market area, as well as the revenue from the previous fiscal years, company sales for 2021 and 2024 are estimated at $2 and $2.3 billion, respectively. The addition of new product lines, acquisition of a new customer base, and the company functioning as a part of Amazon, a reliable online shopping service, translates into a reliable prediction.

Company Goals

Based on the size of the market and the defined market area, as well as the revenue from the previous fiscal years, company sales for 2021 and 2024 are estimated at $2 and $2.3 billion, respectively. Overall, adding new product lines, acquiring a new customer base, and the company functioning as a part of Amazon, a reliable online shopping service, translates into a reliable prediction.

To Potential Investors

As a well-established company with a long-standing history, we are seeking to fund our expansion that will benefit Zappos and our investors. Zappos will require a $3 billion investment to finance its operations effectively and function as a subsidiary of Amazon. This sum will support the company’s daily operations and acquisition of stock that will render Zappos a more effective and financially stable online retail business.

Reference

Zappos. (2022). Zappos.com. Web.

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IvyPanda. (2023) 'The Zappos Company's Business Plan'. 11 November.

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IvyPanda. 2023. "The Zappos Company's Business Plan." November 11, 2023. https://ivypanda.com/essays/the-zappos-companys-business-plan/.

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IvyPanda. "The Zappos Company's Business Plan." November 11, 2023. https://ivypanda.com/essays/the-zappos-companys-business-plan/.

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