Amazon.com had purchased Zappos in 2009 and was making significant investments in warehouse infrastructure. By early summer 2012, Zappos, a dominant player in the crowded online retail apparel and footwear arena must decide whether to retain its warehouse complex in Kentucky, which it had maintained since 2002, or turn over the operations to Amazon. Should Zappos continue to operate as an entity external to its parent company? Or would advancements and changes in the market be disruptive enough to force Zappos to change in order to remain competitive?