Tony Hsieh, CEO, Zappos.com Zappos is an online shoe and merchandise retailer that grew from a startup company in a San Francisco apartment to become a billion dollar company within a decade, while also being consistently ranked as one of the top companies to work for the past five (5) years. Zappos has 1,243 employees and had revenue of $2.2 billion in 2011. While the company cut 1,670 jobs in 2011, there was no voluntary turnover and more than 46,000 job applicants. (Vellota, 2013) This was accomplished by making good business decisions and adhering to a set of core values that everyone is expected to commit to. Amazon acquired Zappos in 2009 for $920 million, yet, it continues to operate independently to maintain their unique …show more content…
(Hsieh, 2010) Zappos’ success is largely attributable to its unique focus on customer service; however, Tony Hsieh’s primary focus and top priority is company culture. (King, 2011) It is Hsieh’s philosophy that if they “got the culture right, then building our brand to be about the best customer service would happen naturally on its own.” (Hsieh, 2010) On the topic of customer service, Hsieh believes that “customer service shouldn’t be just a department. It should be the entire company.” (King, 2011) Zappos defines the core values from which they develop their culture, their brand, and their business strategies. The ten core values that Zappos live by are: (Hsieh, 2010) 1. Deliver WOW through service - doing something that is beyond what is expected and that has an emotional impact on the receiver. 2. Embrace and Drive Change - embracing change enthusiastically and perhaps even more importantly, to encourage and drive it. 3. Create Fun and A Little Weirdness - encouraging weirdness is to encourage people to think outside the box and be more innovative. When you combine a little weirdness with making sure everyone is also having fun at work, it ends up being a win-win for everyone. Zappos employees are more engaged in the work that they do and the company as a whole becomes more innovative. 4. Be Adventurous, Creative, and Open-Minded – wanting people to
company, by critically assessing the pros and cons associated with Zappos operating on a holacracy structure.
Before analyzing the staffing and other related issues, we discuss the strategy and competitive dimensions of Zappos.
Change should be seen as a challenge and embraced with enthusiasm (Marquis & Huston, 2012). In my professional and personal life, I view and respond to change as a way to make improvements to existing regulations and circumstances. I embark upon the quest with determination to succeed at whatever task is presented to me. Life without change can become unchallenging and stagnant (Marquis & Huston, 2012). As society and technology advance, you must incorporate the necessary transformations that arise with it.
Customer satisfaction is the customer’s evaluation of a good or service in terms of whether it has met their needs and expectations (Vander Schee, 2016). The culture of the organization is to focus on delighting customers rather than on selling products (Lamb, Hair, & McDaniel, 2017). An example of a highly satisfied customer would be Nicole Snow, who owns a small business in Maine. One day she reached out to FedEx on social networks and asked for help in getting her supply chain set up. The team responded immediately and helped her solve the problem (“FedEx,” 2015). Here customer satisfaction is greatly shown the customers’ needs and expectations have been met by
Cultural Habit #1: Delivering a great customer experience is a way of doing business – it is not just a program.
Zappos has made the online shopping experience very safe and easy. The marketing strategy used by Zappos has to be one of the best one in any market. Zappos took was given to them and turn the focus to the customer experience. The entire idea was to make the shopping experience better so that customers would return. The promotion of a fun and hip culture for the employees is a big reason this strategy is working. Employees are in good moods and so this passes on the customer. The Zappos atmosphere is fun. There are no sales goals for employee because Zappos wants the relationship between the employee and customer to be genuine.
Founded in 1999 by Nick Swinmurn, Zappos.com, initially named ShoeSite.com, has grown from an inventory-less, “drop-ship” shoe sales website that connected customer orders with shoe suppliers to an Internet shoe mega-retailer that recorded a reported $2.1 billion in revenue in
Have you ever went to a grocery store or a retail shop and received bad services? Did you want to go back to the store after they treated you so poorly? One thing I have learned from working in a grocery store is that no business can be successful without the support of their customers. In this paper, I will be comparing and contrasting two major companies, Hot Topic and Nike. By comparing these two successful companies, I will prove that companies have no chance of success unless they take care of their customers. I will compare their missions and history. These comparisons will prove that good customer care is the key to any company's success.
Customer services are an important concept being touted by all types of companies. For almost 80 years, Macys has strived to be “America’s Department Store”, and they continue to be consistent with
Improving customer service, offering them the best selection, quality, and value (Company History, n.d.) is at the core of the business. The company is committed to the customer’s experience and tailors the business “through the eyes of our customers” as “listening to the customer has never been more important” (Annual Reports, 2014). Additionally, the company offers a variety of brands and services to serve
In 1999, Nick Swinburn was walking around a mall and could not find the right color and design of shoes. He created a shoe company online. He eventually started selling on Amazon to increase sales. Zappos is a great company, and believe in social responsibility. They don’t attempt to get into price wars with competitors, instead, they focus on giving back to the community. Their items are a bit pricey for those who live paycheck to paycheck. It is like buying a Jaguar, BMW, or Lexus. Those that can afford the brand will buy and those that can’t will buy cheaper brands. Zappo’s knows this, so they or company that takes care of the people that got them to where they are now. Without the customers, the business will fail. The community
Zappos has created a very structural attractive company. There is a lot of room for growth with the recent purchase by Amazon.
Since its founding, sales have grown exponentially from US$1.6 million in 2000 to US$1B in 2008 (Exhibit 1.). This strong growth was dependent on a strong and loyal customer base, which in turn was dependent on employees who were passionate about and took pride in their work by providing exceptional customer service in their quest to ‘WOW’ their customers.
Understanding Zappos high regard to corporate culture and customer satisfaction, they take screening for new employees very seriously and have methods to select only those individuals that will promote their corporate philosophies. Even with Amazon.com’s acquisition of the online retailer in 2009, Zappos.com culture and customer loyalty are as strong as ever.
Zappos.com, established in 1999, has rapidly become a strong competitor in online apparel and footwear sales. With the original corporate vison of offering the absolute best selection in shoes; the vision has evolved over the past several years to include the goal of being the retailer that “provides the absolute best service online -- not just in shoes, but in any category” (Zappos, 2014). The online retailer stocks millions of reasonably priced footwear products; carrying thousands of hard to find brand named shoes, handbags, apparel and accessories via the company website and 7,000 affiliate partners. In recognizing their rapid success, Zappos credits it to their commitment to the customer, stating,