1. Zappos seems to be well-positioned to have a competitive advantage over other online retailers. What challenges discussed in Chapter 1 pose the biggest threat to Zappos’ ability to maintain and enhance its competitive position? How can human resource management practices help Zappos meet these challenges?

Zappos, based in Las Vegas, is an online retailer with the initial goal of trying to be the best website for buying shoes by offering a wide variety of brands, styles, colors, sizes, and widths. The zappos.com brand has grown to offer shoes, handbags, eyewear, watches, and accessories for online purchase. Zappos’ vision is that in the future, online sales will account for 30% of all retail sales in the United States, and Zappos will be the company with the best service and selection. The company’s goal is to provide the best service online, not just in shoes but in any product category. Zappos believes that the speed at which a customer receives an online purchase plays a critical role in how that customer thinks about shopping online again in the future, so they are focusing on making sure the items get delivered to our customers as quickly as possible.
In 2009, Zappos was acquired by the Amazon.com, Inc., family of companies which also share a strong passion for customer service. In 2010, Zappos experienced tremendous growth resulting in the need to restructure the company. Zappos was restructured into 10 separate companies under the Zappos family umbrella including Zappos.com, Inc. (the management company) and companies devoted to retail, gift cards, merchandising, and order fulfillment.