SWOT Analysis of Zappos

zappos

This SWOT analysis cover the strengths, weaknesses, opportunities and threats of Zappos in detail.

Strengths

• It has strong brand image

• It has strong customer relationship management with employees, customer and other stakeholders.

• Providing customer superior services

• Established business model

• Believe in transparency

• Cooperative and productive work environment

• Clear vision of higher management

• Positive feedback from customers results in free marketing by “Word of mouth”

• Retention of seventy eight percent customers.

• Focus towards social corporate responsibility

• Strong online presence

• Offer variety of products

• The company culture is clearly defined based on following ten core values.

• Zappos value its culture therefore, they used it for hiring and firing of people

• Zappos has received number of recognitions on best customer service, corporate culture, business model and etc

Weaknesses

• The merger of Zappos with Amazon has negative impact on customers and they consider it as a wrong decision made by higher management and board of directors.

• Amazon and Zappos deals in similar product lines which create competitions among themselves.

• Limited profit margins

• Unethical advertising to promote their shoes product
Line.

• Theft of 24 million customer data that include their credit card information as well raises the question mark on Zappos online system security measures.

Opportunities

• Launch new product lines to reduce dependency on shoe products which generates 80% sales of company.

• Improve online system security by taking ant-hacking measure and share the same information with customer to develop more trust.

• Zappos should expand their services by shipping products in International countries

Threats

• Rate of cyber-crimes are increasing

• Intense competition with competitors; Virgin, Amazon

• Zappos  paying low wages to customer service representatives

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