Zappos Company - Case Study Example

Zappos Company Zappos Company Zappos Company is a clothing company that operates in Las Vegas in Nevada, although much of the merchandise is sold via the internet. It is considered one of the largest retail stores that deals in the sale of shoes. Currently, the organization has over 1500 employees who work on the customer’s orders as well as dispatch the products and services that have been bought. Principally, the firm announced that it had plans to acquire Amazon.com to enhance its activities in the market and to increase profitability levels.

Concisely, the capacity of an institution is one of the factors that can affect the revenue levels since it defines the number of customers that can be served over a specified period (Michelli, 2012). For example, the institution focuses on online purchases as the main source of revenue. Evidently, this is one of the success strategies of the firm since many people in the United States, United Kingdom and other European countries have resorted to buying via the internet (Gray and Vander, 2012).

However, the capacity of the firm may not be well exploited since some customers may be left out of the equation. Thus, this paper highlights the importance of capacity to an institution as well as the approaches to be used to improve the situation.Notably, the company has many employees that serve the customers via the internet, but the capacity can be used to improve the revenue generated. Illustratively, a segment of the market may not have access to the internet at all times, and they may need a physical market for the products.

In such a situation, the customers have to visit the shops so that they can make their informed purchases. Principally, this may increase the revenues collected by the firm. Additionally, some individuals choose to procure products after ascertaining the exact quality of materials used. In such a situation, the clients will feel the products and may as well fit in the clothes, shoes and other apparels. Resultantly, the customers can make additional purchases. Furthermore, prevalence of physical stores in different parts of the market increases the chances of the employees to make sales.

A diverse niche market offers the firm an added advantage as the approach encourages impulse buying. Accordingly, studies about consumer behavior cite that some people create a need for a product after seeing it (Lussier, 2012). Thus, the company can improve its capacity through introduction of additional shops in more locations. Lastly, the amount of time used to place orders should be reduced as it has an effect on the ultimate number of sales realized by the firm. In each case, there is a need to allocate specific amount of time so that the employees can serve a large population in a limited period.

Therefore, implementation of the various changes will have an impact on the productivity of the organization owing to optimal usage of current unutilized capacity.ReferencesGray, D., & Vander, W. T. (2012). The connected company. Farnham: OReilly.Lussier, R. N. (2012). Management fundamentals: Concepts, applications, skill development. Mason, Ohio: South-Western.Michelli, J. A. (2012). The Zappos experience: 5 principles to inspire, engage, and wow. New York: McGraw-Hill.