Although most students will know of Zappos as a shoe retailer, this case is not about shoes or even retailing per se. Students should see Zappos as a culture and a way of doing business. The question is whether this culture and the Zappos way can be applied to other industries and product lines. This is also a case about CEO leadership and how Zappos can ensure the sustainability of its culture when Tony Hsieh is no longer at the helm. Finally, it is instructive for students to learn about Virgin Group Limited, Hsieh’s model for the future of Zappos. Students could speculate on what the future of Zappos might look like if it follows Virgin’s lead.
1. How would you define Zappos’ target market, and how would you describe its strategy to serve this market?
2. Has Zappos’ emphasis on customer satisfaction contributed to its profitability? Explain.
3. Has Zappos developed long-term customer relationships that provide a competitive advantage in the purchase of shoes and other products?