Industry Competition And Price Sensitive Customer Trend

Problem 1: Industry Competition and Price Sensitive Customer Trend Zappos business strategy is to differentiate itself amongst similar businesses by offering an unparalleled customer service creating a â€Å"WOW† experience for its customers. This strategy is an integral part of the organizational culture and is one of its core values. Each and every member of the company is trained in customer service irrespective of their business function and is equipped to provide their organization, suppliers and customers with superior service. With e-commerce being a viable business option after the Internet boom, a large number of companies have cropped up in the last decade creating intense competition to capture market share. Some†¦show more content†¦The disadvantages are customer switching/loss of sale and internal cannibalization. Alternative 2: The current feature of customer rating and product feedback is insufficient to gain a competitive advantage. Zappos can adopt a strategy of creating a customized search engine in collaboration with Google or Bing and create a price comparison tool that lets customers compare Zappos price with other retailers and competitors, similar to Kayak. Zappos using this feature can highlight its superior service advantage by displaying an all-inclusive price for the product including shipping charges as compared to an additional shipping charge displayed by its competitor. Zappos can also offer the lowest shipping cost in the industry separately and develop it as a competitive edge. Alternative 3: Another strategy that can be used is to create a vertical site that offers authentic used products for skiing, surfing, skateboarding, furniture, home dà ©cor, cars etc. at a low cost. This strategy helps Zappos cater to a customer segments that are extremely price conscious. Low- mid income level customers should be the target audience. Zappos could create a profitable business by offering high quality used products at a low cost to this segment of the market. Problem 2: