Components

Primary File
Abstract
Powerpoint

Amazon.com, Inc.: The Zappos Data Crisis

Hanson, A., Kenney, K., and O’Rourke, J. S. (Editor)
February 2, 2018
SKU:
BUS-004078
Region: 
North America
Topic: 
Strategy & General Management, Information Systems
Length: 
17 pages
Keywords: 
hacking, security breach, data stored online, lawsuit, brand equity
Student Price: 
$4.00 (€3.63)
Average rating: 
0
On January 15, 2012, Zappos, an Amazon subsidiary, was the victim of a purposeful hacking attack. CEO Tony Hsieh sent out a tweet, alerting customers that the systems had been penetrated and directing them to a letter with incident details and recommended customer actions. Given that security breaches have become an increasing concern due to the amount of data stored online, the public immediately criticized Zappos, and a class action lawsuit was filed. Tony Hsieh, and parent company CEO, Jeff Bezos, must decide if any additional payment is due to customers and how to retain brand equity and customer security going forward.