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Online stores versus physical shops. a case of Zappos.com

Online stores are more valuable than physical ones. Apart from ease of accessibility, they can reach many clients without necessarily opening many stores across a country. The strategies adopted by Zippos.com in managing its client’s feedback and inquiries ensure that the customers are always satisfied with the services. In such way, the company is able to gain more profit due to the broad customer base.

With the current advancement in technology, more business is likely to adopt the online shop strategy. Nevertheless, the management process of such business requires a higher level of commitment, experience, and expertise (Paladino, Widing &Whitwell, 2015). Furthermore, the issue of delayed or poor delivery services can adversely affect the performance level of a business. As indicated in the case, Zappos.com has taken an initiative of developing a higher level of trust with its customers. In addition to free delivery service, the organization also implemented the fit and return policy where customers can receive replacement for commodities that do not satisfy their requirements. The result of this is a highly satisfied customer, thus, contributing to more customer loyalty. Therefore, the technology enhances the dominance of the organization and further markets its products to many consumers, hence, contributing to the attainment of a sustainable development.

The financial success attained by Zappos.com also contributed to its competitive advantage. Zappos.com reported a strong growth in sales from the year 2006 to 2008. The higher financial performance has been attributed to the happy loyal customers that the company had. Also, the high financial performance of the company is also due to the unique and effective strategies that it implements in its business operations. Profitability is a valuable and rare resource to an organization. It allows for execution of different activities within the organization most of which leads to further growth and development of the company. For instance, Zippos.com was able to invest in a rapid delivery system due to its financial stability. The fact that the high profitability is difficult to attain, and most organizations are still struggling to do so, means that the company will receive a higher competitive advantage as a result of its higher financial performance. As such, the increasing profitability that is reported by the company has therefore enabled it to attain a higher competitive advantage.

Overall, Zippos.com resources and capabilities are vital sources of its competitive advantage in the market. Thus, developing a strong culture, creating a loyal customer base, and establishing an online shop are some of the strong aspects exhibited by Zappos.com, which has enhanced its development in the industry. In this case, devoted clients enable the company to register repeat purchases, which contributes significantly towards the growth and profitability of the organization. Moreover, the broad customer base is likely to provide positive feedback, therefore, further enhancing the marketing of its services and products of Zappos.com. Additionally, online presence enables the organization to be more accessible and attract more customers. Notably, due to the convenience involved, many people are likely to make online purchases. The identified three resources and capabilities of Zippos.com are valuable and difficult to imitate, thus, making them the main contributors to the sustainable competitive nature of the company as elaborated in the case.