Zappos (www.zappos.com) is a Las Vegas-based or line retailer that has been cite
ID: 415096 • Letter: Z
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Zappos (www.zappos.com) is a Las Vegas-based or line retailer that has been cited in Fortune's list of the Best Companies to Work For and Fast Company's list of the world's most innovative companies. In fact, its remarkable success resulted in Zappos being bought by Amazon for S$50 million in 2009. Zappos was founded in San Francisco in 1999 and moved to Las Vegas for the cheap real estate and abundant call center workers. The company sells a large variety of shoes from nearly every major manufacturer and has expanded its offerings to handbags, apparel, sunglasses, watches, and electronics. Despite the crippling economic downturn, sales jumped almost 20 percent in 2008, passing the $1 billion mark two years ahead of schedule. app0s com Zappos provides free shipping in both directions on all purchase The company's first core value is "Deliver WOW through service," which is obvious if you've ever ordered from Zappos. It provides free shipping in both directions on all purchases. It often gives customers surprise upon his or her doorstep the nest morning. One Minnesota grades for faster shipping, And it has a 365-day return customer complained that her boots had begun leaking policy. In 2003, Zappos made a decision about customer after almost a year of use. Not only did the Zappos cus- service: It views any expense that enhances the customer tomer service representative send out a new pair-in experience as a marketing cost because it generates spite of a policy that only unworn shoes are returnabl more repeat cstomers through word of mouth. CEObut she also told the customer to keep the old ones, and Tony Hsieh never outsourced his call center because he mailed a hand-written thank -you." Over 95 percent of considers the function too important to be sent to over- Zappo's transactions take place on the Web, so each seas. Job one for these frontiners is to delight callers. tual customer phone call is a special opportunity. They Unlike most inbound telemarketers, they don't work may only call once in their life, but that is our chance to from a script. They're trained to encourage callers to or- wow them," Hsieh says der more than one size or color, because shipping is free in both directions, and to refer shoppers to competitors when a product is out of stock. Most important, though, cludes an order entry, purchasing, warehouse manage- they're implored to use their imaginations. This means ment, inventory, shipping, and e-commer that a customer having a tough day might find flowers Genghis tracks inventory so closely that customers Zappos uses a sophisticated computer system known as Genghis to manage its operations. This in em. 25 CHAPTER 1:Operations Management and Value ChainsExplanation / Answer
Q1.Services of Zappos are customer benefit package . As it provide free shipping in both the directions. It has 365 days return and exchange policy. It has a trained Frontliners staff who work without script and are trained to make customers order extra piece of product of different color and different size. the delvery is very fast and event sometimes impress the regular customers by sending them flowers or gifts and even sometimes inspite of their policy of return or exchange within the time period, send the customer new product .
The all over manufacturer of Apparel, shoes, bags, sunglases and electronics are the companies whose product marketed by Zappos.
The customer service represetatives, sub staff members of zappos, are responsible for the quality and delivery of the product.
Q2. Primary management process are to keep the customer intact with the services and delivery process and giving them maximum satisfaction . Support manaagement process computer system which manage all the things from order enry , warehousing, purchasing, shipping, to delivery. and update the employees so that they coordinate the warehouse and customer and can able to make their report.
Q3.Three activities which Zappos OP manager do are:
(a) Planning : Plan the product and service mix, product deficiency, sale, Location and shipping planning, organise changes by incoorporating new Processes and procedures.. Encourage pride in performing as expected, Inpect the Quality levels, compare stock level to target.
(b) Training and Development programs: provide training to frony liners or staff members to satisfy he customers and encourage them to make an order more then a specified product. Give more challenging job asignments to the employees, encourage and support employees to seek perfection in their task.
(c) Coordinating: though use of sophisticated computer system,Genghis, one is able to update the order entry, warehousing, shipping, billing, delivery and inform and communicate the employees about the size, range, color and number of the products so that they coordinate with the customers and make an report.
Q4.( a) Very Flexible
(b). Technically compatible through the onlne services
(c)Facilities: suitability of location is depend on the markets for which the product is being developed, service of the company is planning to provide.
(d)Innovation: by providing satisfactory online services , it saves time, money and other cost.
(e) Integration: managing the resources and techinally knowing the product availability by tracking system of ordering, purchasing, shortage, delivery, billing and warehousing etc.
f) workforce: Determining whether the firm has single personnel policy for all the areas or countries or seperate or single policy for each country.
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