Chapter 10: Studying Mergers and Acquisitions

Amazon Acquires Zappos

Amazon is has had many acquisitions over the years. In 2010 Amazon acquired Zappos, one of the largest footwear and apparel ecommerce stores in the U.S. It was the largest in Amazon history at the time. Zappos was acquired for somewhere near $1 billon. In 2009, Zappos had $1.2 billion in sales. This is a key example of Amazon buying up the competition to strengthen its brand. Zappos had extensive brand loyalty due to Zappos’s distinguished customer service focus. Amazon decided to keep Zappos separate from Amazon.com due to this. It should be noted that Amazon also would have many benefits and imporvements that most customers would not recognize in its supply chain.

Sources:

Amazon and Zappos, six months later: how they’re fitting together

Amazon Buys Zappos; The Price is $928m., not $847m.

 

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