Introduction Zappos is an online shoe retailer that started its business in the year 1999. The company later expanded and increased the variety of the products of its business by adding clothing, beauty products, and housewares. The Zappos Customer Loyalty Team Case Study emphasizes on the customer service department and the initial focus the drop ship method. The company also created a brick and mortar storefront to expand the business from online only and increase sales.
The management of Zappos took an innovative approach to earn their required return on investment. They emphasized their customer service and employee training programs to gain greater dividends. In addition, Zappos started to create value for its customers through its
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All the employees working under the CLT had to bid for time slots, however, all the employees that had tenure at Zappos were given priority in selecting the time slots for their shifts. However, not all the CLT employees agreed that this was the most appropriate way to allocate the time slots or the shifts. There were around 500 workers within the CLT and they provided an exceptionally high level of customer service at Zappos. All of the more junior employees needed to accept the 10 core values and continue to be humble and wait for their turn. Though, all the employees were not satisfied with this approach, which became the paramount issue at Zappos.
Case Analysis
Zappos Strategy and its Competitive Dimensions (Question 1) The Zappos business model works through an online customer retailing services and provides a wide range of products to customers; however, the core strategy on how Zappos became a huge success is the company’s customer service. The management at Zappos attracts customers through exceptional service that has created a “WOW” philosophy and embedded it within the fabric and culture of the company.
Zappos has several competitive dimensions in which they compete with other online retailers in the market. The company has always maintained its sales growth rate on the long-term basis at a certain
Guest loyalty, developing employees, expansion, and increased sales are the corporate vision that Zaxby’s has used to grow and develop its brand.
Before analyzing the staffing and other related issues, we discuss the strategy and competitive dimensions of Zappos.
They are more like a big family. At Zappos there are lots of fun activities to get the employees involved, like face painting, wacky parades, and gaming in the lounge on breaks. Employees have the freedom to dress causal and comfortable. The company ensures customer loyalty by closely training and mentoring their team, and at the end of training they offer their employees $3,000 to leave (most of whom do not except the offer after weighing the options). Besides their fun and supportive environment, Zappos offers their employees full health care benefits, free meals, and competitive salaries. Lastly, while many other companies have call centers located outside of the country, (in order to save money) Zappos call center is located in Loss Vegas. Phone calls are not timed or scripted, which gives the employees a chance to interact with the customers on a more personal
This case study about J. C. Penney Co. is about how a company is trying to increase profitability by attracting the best assets in business – customers. Lowering prices and clearly marking down prices, and offering standardized products rather than unique and designer ones are what this company strategy
The owners of Zappos did an amazing job coming up with the idea of selling shoes to from online. There was a market that was created by Zappos. Zappos has been able to continue to grow due the advancing in technology that has made it must easier for customer to shop online. A lot of people know what kind of shoes they like and what size shoes they wear. If a customer does need a product in the next few days and can be patient then Zappos is a great store for that customer. Zappos makes it very easy for the customer because of it policies and customer service. Zappos offers free shipping. Zappos also give
(The Wall Street Journal May 12,2016) As a result, sales have been declining since 2009, which is most likely due to the competition presented by mobile and social commerce, brick-and-mortar retailers are introducing digital technology into their stores whereas Macy’s has been less aggressive in past years. For example, Macy’s must now compete against companies like Amazon.com, which is an online retail website that is considered the largest online retailer in the world, which sells just about any item a person could possibly want to buy.
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
However, recently, the Urban Outfitters Inc. name, which Anthropologie is part of, has come under fire with recent scandals. News that Urban Outfitters asked salaried employees to volunteer for weekend work performing warehouse tasks just surfaced within the last few weeks. These employees would be doing work normally for hourly-wage employees for no pay (Owens “Urban Outfitters should be…”) While this occurrence doesn’t represent all the stores under the URBN brand, there are a few instances within Anthropologie’s Rockefeller Center location that also demonstrate the need for fairer management.
Zappos efforts are generated with good motives, but applying this system on 1,500 employees will not be simple and will probably have some consequences. Employees and managers on the same level playing field can restrain friendly antagonism that motivates employees to keep progressing.
He started to invest in Zappos which the concept came from Fred. Zappos was also faced with many issues all the time and they tried to eliminate the issues that Tony talks in Chapter 3. Also, he explains the relationship between the poker game and the business strategies. Although, Zappos was growing, they also confronted with the recession, the dot-com stock market crash, and 9/11. Tony solved the issues by selling his properties. He had recovered the business to have a good revenue again. It was a stressful period that Tony talks in Chapter 4. However, Zappos was still doing well. He backed to focus at customer service. Also, Zappos had used the Brand, Culture, Pipeline strategies for managing the organization in the long-term that he describes in Chapter 5. Tony had learned many mistakes from the past and continued developing the services and the stories. Nevertheless, Zappos sold to Amazon in 2009. Tony details the reason why he walks out the board in Chapter 6. In the last chapter, Tony asks the reader about the goal in life. He also summary the details about Zappos is about delivering happiness to the
Zappos has created a very structural attractive company. There is a lot of room for growth with the recent purchase by Amazon.
Zappos started out by selling shoes online to become the world’s largest online retailer of shoes. Subsequently, in their quest to boost sales, they moved beyond footwear to become an E-tailer that sells ‘anything and everything’.
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,
In this assignment, we are going to discuss about three main topics of the study of organizational behaviour, which included Individual Behaviour in Organisation, Creative People & Working Environment, and Leadership Style in Organisation Setting.