Zappos And Amazon Essay

449 WordsApr 23, 20122 Pages
Read the opening Case Study, Zappos is Passionate for Customers." Go up to the Internet and research Amazon's purchase of Zappos. From enterprise perspective, I want to hear your thoughts on the following: 1. How are the business models of Zappos and Amazon similar?...How are they dissimilar They are similar because both are online business retail companies. Both companies are the leading online-retailer regarding media products . The service centered logic of marketing is customer focused and based on the relations between companies and customers (Vargo and Lusch, 2004). In other words, collaboration with customers in the process of co-creation of value is of a great importance for Amazon and Zappos. 2. How did the acquisition benefit Amazon? How did it benefit Zappos? The acquisition would benefited both parties due to it brings together two companies who share a passion for serving customers and whose customers benefit from cultures of innovation and long term thinking. “Zappos is a customer focused company,” said Jeff Bezos, Founder and CEO of “We see great opportunities for both companies to learn from each other and create even better experiences for our customers.” 3. How are the cultures of Zappos and Amazon different? It is different because Zappos uses la loyalty business model and relationship marketing. Their main resource has been repeat customer and recommendations. According to the Zappos website 75% are repeat customers. On the other hand, amazon’s focal point is providedthe best price for the consumer. As well, they are different in the fact that Zappos offer generally shoes, clothing, and handbags where Amazon sells pretty much everything. 4. Who do you think benefited the most from the acquisition? It acquisition of Amazon buying Zappos will benefit both companies because both are gaining the millions of costumer

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