Zappos operates in a competitive advantage that is faced by both advantageous and disadvantageous factors. These factors can be explored using SWOT analysis technique. Zappos strengths comprise strong brand image, the strong relationship with the company major stakeholders such as customers and employees and provision of the quality to the customers. Again, the company is endowed with several opportunities that it can use to achieve its strategic objectives. For example, the company can diversify its products to reduce high degree of dependency on a single product. Secondly, it can expand its operations to the international market through direct foreign investment or shipping of their products to oversea countries.
Apart from the positive environmental factors, Zappos is also faced with negative aspects that entail weaknesses and threats. First, the offering of the same products as the company competitors reduces Zappos competitive market share as well as its competitive advantage. Secondly, unethical marketing practices adopted by the company denatures its reputation. On the other side, Zappos is faced with several threats that include increased rate of the cyber-crimes and stiff competition from Amazon and Virgin companies (Adam, 2015).
Ways in which Zappos uses digital media tools
Zappos uses Instagram, Facebook, and Twitter to promote its products both to the potential and existing customers. It engages its pool of customers on Instagram through mixing up several product shots. Zappos Twitter has many followers whereby the company engages with its customers. Zappos Facebook has over two million likes. This gives the company an ideal chance to communicate to the consumers of its products as well as potential customers.
Zappos word-of-mouth marketing through digital media
Zappos encourages the word-of-mouth marketing through digital media my enabling a strong customer experience. According to Dougherty (2015) Zappos, customer experience is so strong to the extent that word-of-mouth can be used to boost company’s sales. Through social media, the Zappos customers’ shares their experience with other social media users who in turn are influenced to purchase the company products.
How Zappos creates authentic relationship with customers through digital media
Zappos holds to the notion that social media is for realizing their culture but not a tool of growing its business. Through social media, Zappos is aiming at establishing customer relationship through human interaction. The company encourages the interaction of the customers and the company’s team through service related and fun comments. For example, in the situation where the customer raises an issue concerning a particular product, Zappos team responds to the customer authentically, honestly and promptly.
References
Adam. (2015, April 13). SWOT Analysis of Zappos. Retrieved from Free SWOT Analysis: https://www.freeswotanalysis.com/retailing-swot/685-swot-analysis-of-zappos.html
Dougherty, J. (2015, March 23). Nine Word-of-Mouth Campaigns That Rocked. Retrieved from Cision US Inc: https://www.cision.com/us/2015/03/9-word-of-mouth-campaigns-that-rocked/
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