Zappos Case Study

In: Business and Management

Submitted By lexinguyen
Words 913
Pages 4
BAD-2610-130777
February 2016

Zappos It was the year 1999 when Nick Swinmurn, the founder of Zappos, was at the shopping mall searching for hours for the perfect pair of shoes. He could not find the pair of shoes he wanted in the right color or size so he went home empty handed. It was unfortunate and a disappointment for him but this is what inspired him to open an online retail store. His idea was simple yet motivational. Swinmurn wanted to open an online retail shoe shop that sold the best selection of shoes in terms of brands, styles, colors, sizes, and width. Swinmurn also wanted to give great customer service while at it. With his hard work and dedication to make Zappos’ market offering, value proposition, and customer relationship the best, Swinmurn achieved to have one of the most successful and fastest growing businesses online.

Zappos is very generous when it comes to their market offering. The online retailer store offers a 365 day return policy, fast and free shipping, free returns, and a 24 hours customer service line. With Zappos’ polite and helpful customer service, it allows their customers to be happy and have the best shopping experience. Compared to other online retailer shops, most do not have a 365 day return policy, fast and free shipping, free returns, or a 24 hour customer service line. By doing what Zappos does best, this makes their business stand out and have the best reviews. Also, when Zappos give great customer service, it is more likely that the customer will recommend their business to a friend or relative. This will bring in more customers and business for Zappos. Customers with good customer service are also likely to return and buy more products. This will increase sales and bring in profit for the…...

Similar Documents

Zappo Case

...firm after a frustrating shopping excursion in San Francisco where he failed to find a properly fitting pair of shoes in the right size, style and color. Swinmurn translated his unpleasant shopping experience into new business expressly designed to meet the demanding needs of serious show shoppers. As a result of his entrepreneurial zeal and his shrewd exploitation of the tools of e-commerce, Zappos grew from its start in 1999 to over $1 billion in gross annual sales by 2008, and was such a success that Amazon.com decided to acquired the firm for $ 1.2 billion in 2009. In 1999, the U.S. shoes industry was estimated to be a $40 billion market. As of that date the shoes industry was heavily dependent on direct retail channels such as established chain stores. It is also noteworthy that approximately 1 in 3 retail sales were lost due to out of stock issues, including: inventory limitations, constrains on the number of brands sold in a given location, the number of sizes and styles carried in each store, and so forth. Like its now parent company Amazon had done with books, Zappos overcame these limitations through the stocking of a vast inventory of all makes, styles, colors, and sizes, displayed and sold through the enabling power of Web 2.0. From Idea to Business Venture In 1999, there was no web site that had a large enough scope of shoes online. To his surprise, Swinmurn found that there was no major online retailer who focused primarily on selling shoes. ......

Words: 1226 - Pages: 5

Hrm Zappos Case Study

...Zappos Case Study Introduction Zappos is a successful company with a unique corporate culture and impressively low turnover rate. This case study explores the human resources strategy employed by the company, focusing first upon the significance of the environment upon human resources. The paper then identifies how the Zappos strategy fits within the human resource management model. The final section discusses the core strengths and weaknesses of the Zappos HR strategy. While the Zappos human resource practices are characterized by many strengths, they could be improved by enhancing the accountability of managers responsible for conducting performance appraisals and inviting a greater degree of employee feedback into the appraisal system. Both of these relatively small opportunities for change are consistent with the company's overall company culture. Environment and HR The external environment plays an important role in determining the direction of a company's human resources strategy. "An organization's strategy must be appropriate for its resources, environment circumstances, and core objectives. The process involves matching the company's strategic advantage to the business environment."[1] Companies develop networks with external entities, such as customers, suppliers and investors, which must be cultivated to ensure longevity.[2] Human resources must ultimately support the business with practices that will enable it to interact and compete within the surrounding......

Words: 1863 - Pages: 8

Zappos Case Analysis

...Professor McCammon 4/8/2013 Zappos’ Case Analysis 1. What are Zappos’ core competencies and sources of competitive advantage? How sustainable are they? What role does corporate culture play in these questions? I identified quite a few core competencies within Zappos that allow them to distinguish themselves from their competitors. First off, they have a very unique return policy, such that they allow the customer 365 days to return the product, in addition to paying for the customer to ship the item back to them. They also have a much faster web interface, as well as extensive online product information. Adding to the technical side of things, Zappos’ also has trained call center operators, and the ability to call toll free. Aside from all those traits, Zappos has really focused on their customer service, and being “a service company that sells shoes.” They are always striving to WOW their customers, or just make sure every customer they deal with is more satisfied with their company as opposed to another. The CRM that Zappos is using is also very successful in making the customers say WOW. Such a strategy of using technology to organize and synchronize sales, marketing, customer service, and technical support helped Zappos get a 75% repurchase rate with their customers, which is another reason their sales are constantly improving. The company’s culture is about growth, both personally and professionally. Because of this company culture, Zappos executives are......

Words: 704 - Pages: 3

Zappos Case Study

...OBJECTIVE To be able to apply my knowledge and skills that I gained from my studies, trainings and seminars attended as well as to serve the company with commitment, loyalty and honesty. EDUCATIONAL ATTAINMENT 2010-2011 Bachelor of Science in Airline Management And Accountancy– (BS.AMA) MATS College of Technology 2006-2007 Sta. Ana National High School Secondary 2002-2003 Sta .Ana Elementary School Elementary EXPERIENCE June, 2011 – Present AE Stream Resources Inc. Cebu Pacific Ticketing Office 4th floor, Gaisano Mall Davao Job Description: - Compiles and records information to assemble airline tickets for transmittal or mailing to passengers. - Reads coded data on booking card to ascertain destination, carrier, flight number, type of accommodation, and stopovers enroute. - Computes total daily fares, using adding machine, to compile daily revenue report. - Selects ticket blank, invoice, and customer account card if applicable, and compiles, computes, and records identification......

Words: 458 - Pages: 2

Zappos Case Study

...the business of Zappos and what are its critical success factors (CSF’s)? [lists] • Business: Largest Online Shoe Retailer with fast efficient order fulfillment. • CSF’s: o Operational Excellence. Primary focus is selling a wide variety of shoes, but also sell other goods such as handbags, clothes and accessories o Focus on customer satisfaction o 4 week Employee training, will full pay o Employee retention, Zappos offered the employees “the offer” after first week of training, which was a 3,000K payout if they chose to quit. o Stocking of a vast inventory of all makes, styles, colors, and sizes, displayed and sold through the enabling power of Web 2.0 o Focused on fast and accurate order processing and speedy delivery to the customer. Website orders are fulfilled fast and efficiently o Zappos owns warehouses and fulfillment centers with an excess or 3+ million shoes, handbags, clothing and accessories, offering the best selection of shoes available anywhere (one stop shop) o Uses eCommerce for the transaction between business to consumer o Best customer service experience, employing approximately 1,600 workers o Offers free delivery and returns as well as a guaranteed 4-day delivery window and a 365-day return guarantee. o Innovated Company that kept culture and work environment ‘fun’ and relaxed. 2. Please complete the following table. Identify the key information systems and the related IT infrastructure investments that enable Zappos’ core business......

Words: 832 - Pages: 4

Zappo Cases

...firm after a frustrating shopping excursion in San Francisco where he failed to find a properly fitting pair of shoes in the right size, style and color. Swinmurn translated his unpleasant shopping experience into new business expressly designed to meet the demanding needs of serious show shoppers. As a result of his entrepreneurial zeal and his shrewd exploitation of the tools of e-commerce, Zappos grew from its start in 1999 to over $1 billion in gross annual sales by 2008, and was such a success that Amazon.com decided to acquired the firm for $ 1.2 billion in 2009. In 1999, the U.S. shoes industry was estimated to be a $40 billion market. As of that date the shoes industry was heavily dependent on direct retail channels such as established chain stores. It is also noteworthy that approximately 1 in 3 retail sales were lost due to out of stock issues, including: inventory limitations, constrains on the number of brands sold in a given location, the number of sizes and styles carried in each store, and so forth. Like its now parent company Amazon had done with books, Zappos overcame these limitations through the stocking of a vast inventory of all makes, styles, colors, and sizes, displayed and sold through the enabling power of Web 2.0. From Idea to Business Venture In 1999, there was no web site that had a large enough scope of shoes online. To his surprise, Swinmurn found that there was no major online retailer who focused primarily on selling shoes. ......

Words: 1394 - Pages: 6

Zappos Case Study

...V-236 2/12/14 Case 1 Zappos has 10 different commandments that they abide by on the everyday basis. There are two commandments that stand out in my opinion that would influence the way employees do their work. Be adventures, creative and open minded. Giving the employees the ability to take risk when doing their normal day task. For example, the call center workers are promoted to try new things to make the customers feel delighted and appreciated. Where as some jobs that offer a call center have their employees on a scripted dialogue, almost making them sound like robots. I think Zappos has faith in there employment by giving the employees an encouragement to make misstates because they are only going to learn from them. The second commandment that stood out to me was, create fun and a little weirdness in the work environment. I believe that this brings the workers closer together, because it actually shows peoples personality. In most work environments you always have to dress business professional and act accordingly. Zappos is bringing the aspect of being yourself in the work place. So if that means dressing in pajamas and having blue hair, that’s accepted at Zappos. They don’t mind people having fun while being the best at what they do. This type of commandment shows how confident this company is, because the results always show their success. Tony Hsieh said, “ I think it really boils down to our focus on a company culture” meaning your......

Words: 945 - Pages: 4

Zappos Case

... Ans#1 Zappos with its belief to “get the culture right and rest everything falls in place” had a very unique culture that initiated with hiring only happy people in the company who can with their positivity make their customers happy too. The trend of seeking feedback by the employees to create or bring any new norms built up a great relation between employer and the employee that made the company culture even stronger. The senior managers made sure to keep some time out of work to socialize with the employees to create a family spirit and make really less difference between work and life. The whole ambience and construction was built in a creative way that kept the employee’s feel enthusiastic unlike other boring offices. The core values created by the feedback of the employees was the most efficient quality looked up for hiring any person as their employee. Also the confession bell idea was a great one that built up open and honest relationships. These were the strong and effective norms that made a happy employee complete the need of a happy customer. This kept the employees work with all their heart and sustained the culture strong. Ans#2 The culture of giving employees freedom to choose the core value on which they would love to work increased the efficiency and productivity of the company. They believed in building relationships that benefited the business and was one the reasons for the rapid growth by the loyal customers. 75% of the orders were from repeated......

Words: 366 - Pages: 2

Zappos Case

...Luciana Nabuco - Zappos case - March 2015 1. Why is Zappos culture so strong? What sustains it 2. 2. In what ways, if any, does Zappos’ culture help and/or hinder its business performance? Be sure to explain the connection between culture and business performance/results? 1 - Zappos is a company built to promote the best experience to consumer through core values and intending to spreading happiness to consumers and employees. The core values are almost a commitment and is the base of the culture. The company provides a great and funny environment where people feel proud to be and, the rewards are more than the benefits as free lunch and vending, they have continuous training, great relationship with team members out of work and they have happy customers that are always posting good things about the service and experience and also they do repeat business, what means loyalty! Is important to mention that the company have a Organic system, what increase the employee’s motivation, and also the decentralized management provides a comfortable and productive environment. 2- Zappos do a great job connecting the inside culture and the consumer experience/ happiness. Both of audiences are treated with fairness and always focusing on loyalty. At the same time that is possible to observe 75% of repeat business, the turn over for “team members” (how they are called) is 7% while the market average is 150%. At the other hand, they have a inefficient operation, talking about control, but......

Words: 318 - Pages: 2

Case Study: Christa Foley: Recruiting Outside the Box at Zappos.

...Christa Foley: Recruiting outside the box at Zappos Zappos is a privately held online retailer with an extensive product category mainly including footwear, watches, apparel and handbags. Their Headquarters is located in Las Vegas, Nevada, and it primarily operates in the US with about 1,300 employees and revenues mounting to $2,158 million in 2011. And also this company spends over $350 million to develop the entire neighborhood so employees will have access to great places to live and socialize too. Thanks to its strength in offering an outstanding customer shopping experience and strong corporate cultures and values related to customer service; it is one of the largest online shoe retailer with a positive growth outlook. Zappos launched in 1999, there was a great deal of reluctance about the notion of selling shoes online. The exclusive selling propositions of this company included: the ability to buy from a much larger selection of sizes, styles and colors than in brick and mortar stores; the ability to receive overnight shipping for free; the provision of detailed information and visual access to the shoes; and the “WOW” experience of a customer service call center whose passionate employees were trained to go above and beyond. Would you consider working for Zappos? Why or why not? After I read the article and did further research on Zappos, definitely I will like to work with a company like this that is focuses on identify the right fit of their employees. I like......

Words: 722 - Pages: 3

Case Study Zappos

...Berggren 11/2/15 Zappos Case Study: Happiness and Company Culture To Zappos, service is not just a value held on the corporate plaque or something they like to talk about. At Zappos, delivering exceptional service is a way of life. Zappos is a large online clothing and shoe shop who has made service, not shoes, their business. In 2009 Zappos was acquired by Amazon for an all-stock deal, valued at $1.2 Billion. While many factors contributed to the success of Zappos, the biggest contributors were the leaders, Tony Hsieh and Alfred Lin. Hsieh and Lin understood that the happiness of their employees, partners, and customers was key to Zappos business. Everyone inside Zappos, knew the link between the culture of happiness and the positive performance, attributed to the success of the company. Since the creation of Zappos in 1999, the Zappos brand has upheld its “wow” customer service positioning and a distinct corporate culture. At the time there was no other big online footwear retailers, so Nick Swinmurn, founder and CEO of Zappos, created an online footwear site, containing many varieties of shoes in different colors, styles and sizes. At the time there were not a lot of online shoe retailers, so they were primarily competing with brick and mortar shoe stores. Initially, Zappos received inventory through independent shoe stores but by 2000, they had secured relationships with the shoe manufacturers themselves and were able to offer over 100 brands. In a year, Zappos......

Words: 2110 - Pages: 9

Zappos Case Study

...The challenge that I believe that would pose the biggest threat to Zappos would be the sustainability challenge like the economy. If the economy makes a turn for the worst, consumers won’t have the money to be able to spend on extra wants or extravagant purchases. They would have to purchase shoes at local stores that were at a lower cost to them. Another challenge to them would be trying to keep good help. They said that only one in 100 applicants pass their criteria then they offer $2000 in the training process for a person to quit. Some people might decide to try to get hired just to get that offer to quit. If more and more people do that, they wouldn’t be able to have enough people to work for their company. Human resource management practices can help meet these challenges by keeping an eye on the economy and listening to the employees when they talk about not being able to afford the products themselves. With the keeping good workers, they need to again listen to their employees better and if it seems like they are getting unhappy about something, maybe they can find out if there is something that would help make it better. A good employee would be bad to lose over something small that the company could have taken care of. I think that the employees of Zappos have a high level of engagement because the company seems to take care of them. The training is extensive and their benefits are good. Zappos takes care of their employees so that they will be more productive for...

Words: 455 - Pages: 2

Zappos Case Study

...operation as marketing costs, because good phone experiences encourage people to say positive things about Zappos to their friends. -The website was simple, easy-to-use, and designed to make the experience very enjoyable. - could order shoes from thousands of miles away, and if they’re not right -return them without any hassle. -specific type of shoe for a wedding and was able to easily find them. -The point is that while Zappos offers thousands of shoes and other products that appeal to a broad audience with diverse needs, their customers are able to easily customize their seemingly unlimited options into exactly what each of them needs and wants. -Zappos has spent a lot of time and money to learn the IT that customers want and then deliver exactly that – enormous selection and convenience, all in an easy-to-use and hassle-free package. -Knowing what clients want and developing ways to meet those needs is the basis of creating tangible opportunities that exceed their expectations. Zappos invested their money in customer service rather than in expensive marketing campaigns. Their time is spent observing and tracking customer behavior with the on-going goal of creating more personal emotional connections with its customers. This speaks volumes as they put their precious resources (money and time) into creating customers for life. - While Zappos uses technology to make the customer experience easy and hassle-free, they recognize that there are......

Words: 1437 - Pages: 6

Genentech and Zappos Case Study

...competitive rate compared to other competition. Giving good benefits is the foundation of keeping good skilled workers. With a lower turnover rate compared to other companies with these benefits, it will allow employees to build their career within that company as provided examples by Genentech and Zappos. Also since a paycheck is not powerful enough anymore to keep skilled workers from leaving, adding additional packages for the organization's employees, gives the feeling of perks. For example, Hewitt Associates was a company that managed benefits for large corporations. One of the benefits of working at Hewitt was its free lunch program that was provided to every Hewitt employee. The main cafeteria in the building provided free lunch and breakfast every day. It was a great way to keep employees happy and to recruit new skilled workers. When Hewitt ceased this benefit, employees started leaving the company for higher pay and the company's reputation went with it. 2. Genentech is providing benefits such as "Unlimited sick leave, concierge service, child care, etc.” These great benefits give the employee a piece of mind that helps alleviate the stresses that affect them daily. Zappos on the other hand provides benefits that are more entertaining, for example, "pajama parties, nap rooms (my favorite), regular occurring happy hours, and a life coach." if more companies provided these kind of extraordinary benefits to their employees, there would be less and less people......

Words: 593 - Pages: 3

Zappos Case Study

...Zappos Case Study 1. Draw and describe the customer benefit t package that Zappos provides. Identify and describe one primary value creation, one support, and one general management Process you might encounter at Zippos. The customer benefit package Zappos provided to their customers is the” Deliver Wow through Service” for customers who ever order from Zappos , and they also provide free shipping in both directions for all their purchases and they often give customers free upgrade surprise and 360 return day policy. 2. Explain the role of service encounters and service management skills at Zappos. How does Zappos create superior customer experiences? The way Zappos create superior customer experiences is by making sure that their customers are all happy with their order including those customers that have brought the products pass the return date by providing them 365days policy, and also trained their works to be more implored to use their imaginations on customers that they feels has a tough day should be send an overnight flower to her door step the next morning. 3. Describe how any three of the OM activities in the box “What Do Operations Managers Do?” impact the management of both the goods that Zappos sells and the services that it provides. Operations Management is the science and art of ensuring that goods and services OM Inventory management: Zappos it was with fulfillment out of their hands, they were faced with problems of control over......

Words: 815 - Pages: 4