Eco 365 Week 2 Individual Paper

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Individual Paper on Zappos Carla Williams ECO/365 January 2, 2014 Kimberly Hlaing Individual Paper on Zappos In this paper the reader will find that Zappos is an Online Shoes store founded in 1999 by owner, Nick Swinmurn in Las Vegas, Nevada and has grown to be the largest online shoe store in the world. Nick’s idea of Zappos came about when he was searching a pair of skateboard shoes in his neighborhood mall. Swinmurn approached two guys to invest into his idea of opening up an online shoe store with the original name of Alfred Lin and Tony Hsieh were the two investors that were not too fond of this idea at first, but ended up investing $2 million dollars from their firm called Venture Frogs. After starting the company with…show more content…
All companies cannot dictate the price of the products. Imperfect Competition also known as Monopolistic/Competitive market is the complete opposite of Perfect Competition. Imperfect Competition means that all companies have the power to dictate prices of product and all companies are able to join the same business if the revenue is up. Oligopoly is when a small group of companies control a specific market. Monopoly is where only one company is providing a good and or service. Businesses may maximize profit in each market type by agreeing upon a lay down price. Perhaps businesses cannot agree upon a set price then the price is going to be above marginal cost. If the company is in competition with other companies in the same market, making decisions about prices, how they advertise, output, etc, can influence the profits of every, if not all companies in the same market. This is where management gets involved to ensure the company that their strategic way of thinking and planning can and will allow the company to gain…show more content…
This is where all companies are selling similar if not the same products, but in different areas on websites in this case. Take Zappos and then look at Amazon, Shoe Dazzle, The Pink Box, FabShoes, etc. All these companies are in the same business. Zappos is not a cheap selling company either. Most of the time the prices are higher than the rest of the other companies for product, but Zappos offers their customers a different experience. Zappos is able to maximize profits in this market because this company figured out how to dominate with their morals they have created. Zappos focused on how to provide wowing services to online customers. This is a company that knows they have to constantly change and embrace it. Zappos owners wanted his company to be fun and weird, making sure to stay adventurous with an open mind. Zappos is also a company that lives by growth and setting goals, so with that comes learning. Zappos is always up on learning the new\and building honest, open relationships, having effective communication within the company and their consumers. Zappos figured out how to accomplish more by doing less by being determined and passionate about their company and remaining humble. Nick has done a successful job at making the company a fun environment to work for, making it exciting for the employees, giving them a reason to want to go to work. The actions of the leadership for Zappos all shows in the

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