The importance of start-up companies to adjust the strategy in time

this is a start-up company in time to change the strategy of success stories. once footwear business under the framework of a part of products are not profitable, profit plummeted 25%, but brought rapid development, finally by for more than $1 billion acquisition price. and many Internet companies, founded in 1999 when the technology bubble, the original intention is to focus on the line, the hands do not touch shoes". sells shoes on the Internet, the customer selects the shoes on the website, and then the supplier sends the shoes to the customer from their own warehouse.

CEO Xie Jiahua said, "in theory, it’s a perfect idea." But the reality is not, after the company was founded four years still no profit, unable to get VCs favor, and shoes retail market just from the 2001 economic recession. In order to survive, the company must explore more valuable products: quality customer service, unless it is shipped to customers or it will not be achieved, which means that they have to build their own logistics system.


Zappos in order to ensure good customer service, any shoes that are not made of their own are forced down the shelf, which makes its sales decreased by 1/4. Though we closed a door, we lost 25% of our profits. Xie Jiahua said: "it’s like I bet on the company’s development."

he won the bet, merchandise sales reached $2 billion, the quality of customer service to bring more repeat customers, these repeat customers also take the initiative to recommend November 2009, to $1 billion 200 million acquisition of, painted a perfect stop.

(text /Simone Baribeau translation /Anna)


Leave a Reply

Your email address will not be published. Required fields are marked *