Zappos Strategic Hrm

3369 words 14 pages
| 2012 | | |

BE2601-Principles of Management
Group Assignment:
Zappos Planning & HRM
SEM 1, AY 2012/13

Contents Executive Summary 3 Introduction 3 Mission Statement 3 Strategic Planning 3 SWOT Analysis 3 Recommendations to SWOT 4 Corporate Level Strategy 5 Business Level Analysis - Point of Differentiation 5 Human Resources Management (HRM) 5 Recruitment and Selection 6 Training and Development 6 Performance Appraisal and Feedback 7 Pay and Benefits 7 Labor relations 7 Overall Analysis and Recommendation 8 Appendix 9 Diagram 1: Zappos Family Core Values 9 Diagram 2: BCG Matrix 9 References 9

Zappos is a blooming online shoe retailer that has made its name by being
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In doing so, Zappos can widen their market to capture consumers who enjoy the physical shopping experience of trying out the products, and those who shun online shopping for security reasons. Existing customers who do not wish to wait long for the deliveries of their goods can also make a trip to the nearest store. This propagates the same culture that has gotten Zappos this far.
To wean them off the risk of exposure of customers’ information, Zappos should invest in more secure technologies to mitigate such reputational damage. Zappos should also liaise with its parent company, Amazon, to match their product lines so that their products’ target segments do not overlap.
Zappos have been Stars in the BCG Matrix with high market growth rate and high relative market share (Diagram 2). Zappos should continue re-investing heavily to maintain its position and growth in the market. When growth slows and its market share does not wane, Zappos may transition to a Cash Cow. Zappos may consider concentric diversification of adding new businesses that are related to its core competencies of impeccable customer service. To maintain its position, it can utilize the strategies outlined below. A major competitive advantage will derive from vertical integration of its supply chain and distribution channels.
Corporate Level Strategy