Final answer:
Zappos is challenged by stiff competition and the need for digital innovation, but its emphasis on company culture and unique customer service strategies may contribute to high employee engagement and competitive differentiation.
Step-by-step explanation:
At present, Zappos faces several challenges that could potentially hinder its goal of becoming the premier online retailer. One such challenge includes the intense competition from other large online retailers like Amazon and Walmart, which also offer a wide variety of products, sometimes at lower prices or with faster shipping options. Another challenge is adapting to the constantly changing digital landscape, which requires constant innovation and updates to their online platform to enhance user experience and keep up with consumer expectations.
Regarding employee engagement, Zappos is renowned for its unique corporate culture that emphasizes employee happiness and empowerment. This approach likely results in higher levels of employee engagement, as workers may feel more valued and involved in the company's success. Key strategies, such as their 'customer service for anything' hotline and strong focus on company culture, are particularly effective, as they differentiate Zappos from competitors and build a loyal customer base.