Zappos Essay

906 WordsMar 26, 20144 Pages
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 shoesite.com. 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 the name Shoesite.com, the name was changed to Zappos, which was originated from the Spanish word, Zapatos not limiting this company to only selling shoes. Within the first year Zappos generated revenue was $1.6 million dollars, not really getting back what was invested, but the following year generated $8.6 million dollars, nearly quadrupling its revenue. The differences between the four market types are as follows; Perfect Competition is where all companies sell the same product. 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

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