Question 1: What is the value proposition? Answer 1: Value proposition defines as a value that a company provides to its customers and it must be something that makes its products or services differentiate from its competitors offering the same. Value proposition meets the 3 criteria: . It's Specific: What specific benefits will target customers receive? . It's Exclusive: How is it both desirable and exclusive? How well does it highlight the company's competitive advantage set it apart from competitors? . It's -Pain focused: How will the product be offer fix the customer's problem or improve her life?. As in the case of Zappos, the value proposition is in their customer service as customers perceive they are getting adequate value for their money. From Zappo's first value ' delivered wow through the service' which implies that they do something which is unconventional and innovative. From wow' they mean delivering services to their customers more and above what they expect from the company. They just don't limit to their customers but also make it possible with their employees, the society, suppliers and all other stakeholders. According to them whatever they do must have an emotional impact on its recipient. The philosophy followed by Zappos is to wow with the service and experience not just for earning profits they want to build a long term relationship with them. For example