Final_ZAPPOS_paper[1]

Final_ZAPPOS_paper[1] - BA 3305-002 December 1, 2010 Team 1...

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BA 3305-002 Team 1 (Team BA) December 1, 2010 Tony Hsieh and Zappos Zappos derived its name from the Spanish word, zapatos , meaning shoes. For entrepreneurs Tony Hsieh and Nick Swinmurn, shoes were the starting point in building what is now the largest online shoe store. Originally founded in San Francisco of August 1999, the co- founders intended to build the top stop for online shoe shopping, however in February of 2000, Swinmurn left the company and Hsieh became the CEO of Zappos.com. The first years of Zappos were rough. The company failed to make a profit and in October of 2000, Zappos was out of money, resulting in half the staff being laid off. By August 2002, the San Francisco’s warehouse was sold and a new one was opened in Shepherdsville, Kentucky. Sales rose to $32 million but Zappos still saw no profit. In March 2004, Zappos moved its headquarters to Las Vegas due to the high number of experienced call-center workers. This move would provide an already efficiently trained staff. In October of that year, sales had raised enough to allow the company to make a capital investment. In the next year of August 2005, Jeff Bezos of Amazon.com personally flew to Las Vegas to offer to buy Zappos for $370 million, but the offer is rejected. Zappos finally make a first time profit in December 2007; they sold $100 million worth that month to end the year with $840 million. By 2009, Zappos had grew to gross over $1 billion in sales. In April 2009, Hsieh met with Bezos of Amazon.com and agreed on Zappos staying as an independent company. Amazon bought Zappos.com for $1.2 billion in November 2009. Amazon still keeps Hsieh as the CEO of Zappos. 1
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BA 3305-002 Team 1 (Team BA) December 1, 2010 Tony Hsieh is a big part of where the Zappos Company stands today. Hsieh’s best known working ventures began with co-founding LinkExchange, Inc. where he served on the board of directors and took charge in designing some of the major technologies for the company. Hsieh’s unique creativity and motivation led to the design of services that help Web site owners grow online traffic and boost online sales. These services became regularly used by over one million Internet users. Also, the services Hsieh created for LinkExchange helped to generate considerable year-to-year revenue growth as well as making the company a well-known brand name. Hsieh also co-founded Venture Frogs and worked as a Software Engineer at Oracle. He described himself as being “fairly entrepreneurial” his entire life as reported on the Harvard School of Engineering and Applied Science Web site. When Hsieh was just in middle school, he was in charge of a mail-order business. While being a student at Harvard, he ran the Quincy House Grille and decided to expand their food selection and invested in pizza ovens. When being a student came to an end, Hsieh graduated from Harvard in 1995 with a B.A. in computer science. Although graduating from Harvard is valuable, Hsieh said most of his learning did not
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Final_ZAPPOS_paper[1] - BA 3305-002 December 1, 2010 Team 1...

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