SWOT Analysis of 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
• 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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