SWOT ANALYSIS ON Zappos.com

A

abhishreshthaa

Abhijeet S
Zappos.com is an online shoe and clothing shop. Currently based in Henderson, Nevada, United States, the company warehouse is located in Shepherdsville, Kentucky, along with an outlet store.

Since its founding in 1999, Zappos has grown to be the largest online shoe store.Zappos did "almost nothing" in sales for 1999, but grossed over USD$800 million in merchandise sales in 2007 and grossed over $1 billion in 2009. In July 2009, under pressure to deliver a return to Sequoia Capital and its other investors, the company announced it would be acquired by Amazon.com in an all-stock deal; by the time the deal closed in early November, the deal was worth about $1.2 billion.

The name Zappos is derived from the Spanish word zapatos, meaning shoes.


Strengths

* Effective communication
* Innovation
* Online growth
* Loyal customers
* Pricing
* Unique products

Weaknesses

* Weak real estate
* Not too many Locations, throughout the US

Opportunities

* Innovation
* Online
* Takeovers

Threats

* External changes (government, politics, taxes, etc)
* Product substitution
* External Changes would include job losts and disinterests of the actual produucts offered in the online store.
* The possibility of acquisition by bigger companies
 
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