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2009: Clothing, Customer Service,

and Company Culture

KELOMPOK 5
1. Dyah Sekar Kirono
2. Giandhika Mulya Muhammad
3. Faris Muhtadi
4. Eryk Lesmono
5. Nessie Diera Hertha
6. Muhammad Furqon Putranda
CASE SUMMARY
1999 Zappos Found by Nick Swinmurn
Zappos comes from Spanish Word “Zapotas” which means “Shoes”

2000 Zappos had 150 brands and 400,000 pairs of shoes in stock and was
billing itself as the world’s largest shoe store.
Zappos secured $1.1 million in venture capital funding from Venture
Frogs Nick Swinmurn
Founder of Zappos
CEO Zappos 1999 - 2006
2001 Tony Hsieh Joined as Co-founder of Zappos
Produces $8.6 Million in Gross Sales

2002 Gross Sales goes to $32 Mio

2003 Gross Sales Zappos Rise to $70 Mio

2004 Gross Sales Zappos Increase Rapidly to $184 Mio


2005 Sequoia Increases its Investment in Zappos to a Total of $ 35 Mio
Alfred Lin, Co-Founder of Venture Frogs, Join Zappos as CFO
Zappos moved The Headquarters to Las Vegas for Its Lifestyles
Zappos Sales increase to $370 Mio

2006 Tony Hsieh Become a CEO After Nick Swinmurn Leaves


Zappos Sales hit $597 Mio

2007 Zappos Acquired 6pm.com


Gross Sales at Zappos Hit $840 Mio
Tony Hsieh
CEO Zappos
2006 - Now Kiva Mobile Fullfillment System (Kiva MFS) is Brought by Zappos
2008
First Time hitting $1 Bio Gross Sales

2009 Sold to Amazon.com with $1.2 Bio and Other Deals


3’C OF

CULTURE

CUSTOMER
SERVICE

CLOTHING
COMPANY 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 & Determined
10. Be Humble
MAIN ISSUE
1.The First C: Company Culture

The Second C: Customer Service

The Thrid C: Clothing

Acquisition Zappos by Amazon in 2009

Continue to Grow Zappos After 2009


PROBLEM STATEMENT
THE FIRST C: COMPANY CULTURE

What’s the meaning with Zappos Philosophy


in their Culture?

“Our philosophy is you can’t have happy


customers without having happy employees,
and you can’t have happy employees without
having a company where people are inspired
by the culture. We view this as a strategic
asset. We may have 1,200 to 1,500 brand
relationships and a good head start against
the competition, but that can be copied. Our
Websites, policies—all can be copied, but not
our special culture.”
Hiring For Cultural Fit?

Zappos screened job applicants to


ensure they would fit within the
Zappos culture. The evaluation began
with the initial application which
featured a crossword puzzle on its
cover and cartoon characters posing
off-beat questions.
THE SECOND C: CUSTOMER SERVICE

How Could Zappos Customer Become a


Loyalty Customer?

Hsieh and Lin believed that a significant


part of the company’s rapid growth was
due to its customers’ loyalty (75% of
Zappos orders were from repeat
customers), which they attributed to their
obsessive focus on delivering superior
customer service.
THE THIRD C: CLOTHING

Is Zappos Just Only Sell the Shoes?

In 2006, Zappos began to pursue several additional lines of business,


including purchasing a discount footwear site, running e-commerce
sites for other companies, offering private-label products, and
providing online business advice.
ACQUISITION ZAPPOS BY AMAZON IN 2009

Why Amazon Buys Zappos?

Amazon had been courting


Zappos since 2005, hoping a
merger would enable Amazon
to expand and Strengthen its
market share in soft-line retail
categories such as shoes and
apparel
CONTINUE TO GROW ZAPPOS AFTER 2009

Continuing to Grow Zappos?

In 2009, the Company Focused


on reducing capital
expenditures and debt to
improve cashflow
ANALYSIS OF SOLUTION
ALTERNATIVES
POWER OF SERVICES

RAPID GROWTH SALES!!

WITHIN 8 YEARS
GOT EXCELLENCE CONCEPT OF
SERVICES

EXCELLENCE MARKETING CONCEPT:

• Unique Corporate Culture


• Unique Recruitment Method
• Different KPI Measurement
• Interface of Excellence Order
• Great Method of Delivering Packages
FUN COMPANY CULTURE
RECOMMENDATION
KEEP UP THE EXCELLECE SERVICES

KEEP MAINTAIN ITS CULTURE

IMPROVE PROCESS AND FINANCIAL MANAGEMENT