But this does not mean they should be dismissed as viable competitors. In fact all direct competitors should be watched very closely. SWOT Analysis

Strengths

Outstanding customer service

Free overnight shipping

Wide variety of products

Happy, dedicated employees

Weaknesses

Cannot afford deep discounts

Transportation problems with half-full trucks

Opportunities

Expansion into other markets

Developing niche customer bases

Eventually going overseas

Threats

Changing customer behaviors on the internet

Possibility of new entrants

Over-diversification of product offerings

Recommendations/Conclusions

My recommendation for problem 1 is to exert somewhat more control over what the customer service representatives are permitted and encouraged to do. This does not mean that they have to suddenly start reading scripts or giving rehearsed responses to their customers. The randomness of the operation is one of its greatest appeals. But at the same time, executives need to keep in mind that randomness and uncertainty can also be ticking time bombs in the business world. Therefore, training employees how to react to certain situations without actually stripping...

Finally, my recommendation for problem 4 is to add content to the site such as SEO-rich articles (search engine optimization) that will draw customer directly there.
References

Beaudry, J.E. (2009, May 4) Zappos milestone: Customer service, Footwear News, Retrieved from http://about.zappos.com/press-center/media-coverage/zappos-milestone-customer-service

Bessant, J & Lamming, R. (1999) Managing successful total quality relationships in the supply chain. European Journal of Purchasing and Supply Management, 1(1), 7-18

Irani, Z, Love, P.E.D. & Li, H. (2000) Gaining a competitive advantage in a virtual supply chain. International Journal of Logistics and Physical Distribution 30 (3), 64-71

Lee, H.L. (2000). Creating value through supply chain integration, Supply Chain Management Review, 14 (4) 30-37

Zappos.com: Developing a supply chain to deliver WOW! (2009) Stanford Graduate School of Business, Case GS-65