The Culture After The Formation Of Zappos

company, by critically assessing the pros and cons associated with Zappos operating on a holacracy structure.

Zappos is an online shoes retailer that started its business in the year 1999. Later on the company had expanded its business to include the beauty products, clothing and even the housewares within its leading e-commerce website. This case emphasizes on the customer service department of Zappos Company and initially the business focused only on the drop ship method. Later on the company also increased the variety of the products. The company had also created a bricks and mortar storefront to expand the business and increase the sales of the business.

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.

For Tony Hsieh, the Zappos brand is less about a particular type of product and more about providing a good customer service. This means that he largely cares about the welfare of his employees and customers. An evidence of him being such an altruist leader was when the blog search engine Land called him “the

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, which started as an on-line shoe retailer in 1999, has grown into a multi

Nick Swinmurn founded Zappos in 1999 after he had spent a day shopping for shoes in San Francisco. After browsing online, Swinmurn chose to quit his job and start a shoe website that offered the best service and best selection. The website was originally called ShoeSite.com and it started as a middleman, transferring orders between suppliers and customers but not holding any inventory (a “drop ship” strategy). The website was eventually renamed Zappos, in reference to the Spanish word for shoes (zapatos). In 2000, entrepreneur Tony Hsieh was chosen as the company’s CEO. At 26 years old he was an early investor in Zappos, already making $265 million by selling his startup company to Microsoft in 1998.

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’.

The management team at Zappos must analyze and carefully determine which path will ultimately offer the best growth potential for the company as a whole; whether that is continuing business as usual by remaining independent, or successfully merging with Amazon.com.

Zappos is an online shoe and clothing corporation with its headquarters in Las Vegas, Nevada. Zappos, originally called ShoeSite.com, was founded in 1999 by Nick Swinmurm. Swinmurm was frustrated by the lack of shoe varieties at his local mall in San Francisco, California, he then decided to try to shop for quality shoes online. At that time, there were large numbers of online family stores, but none of which specialized in selling shoes. With the idea of creating an online store that specialized in providing customers with quality customer service and a large shoe selection, Swinmurm created Zappos. Current Zappos CEO Tony Hsieh, created a vision for the company that is based on providing its customers with the best service, the best selection of shoes, and appeal using an e-business environment. By providing customers with the best online experience, Zappos was able to gain over one billion dollars in annual sales. Another aspect that stands out about the company is their treatment of their employees, “the vision stems from CEO Tony Hsieh, the 42-year-old entrepreneur who has made clear that he puts passion and company culture above profits” (Low, 2016, p. 18). Zappo’s organizational culture is very different from that of a traditional corporation’s organizational culture.

Before starting the analysis it should be taken in consideration that Zappo’s business is done thru e-commerce and it managed to introduce itself at the early 2000’s when society had trust issues with making business online, which is the platform that Zappo’s used to create trust and enhance it’s value proposition.

Zappos.com is an online shoe retailer but their main focus is customer service. Tony Hsieh is the CEO for Zappos.com and he seems to really understand the innovation strategy and

Zappos.com owns a consistent share of shoe buyers’ market and maintain a solid and prominent position in online retailing. Although the numbers suggest that the company serves the US market like no other company, an expansion of its current share should be considered. Even thou the investments that this would require, we agree that Zappos could expand and build a stable source of competitive advantage by producing its own shoes line, followed in the future by it’s own shoe related wear line.

Zappos core businesses include shoes, clothing, handbags, and accessories. Shoes account for 80% of Zappos revenue leaving the other product lines accounting for 20%. Zappos offers over 50,000 different varieties of shoes including some niche markets, narrow, wide, hard to find sizes, and American made (Zappos.com). Another aspect of their core businesses is their company culture and customer service. Hsieh built the Zappos brand off ten company core values and they are used as a baseline for hiring and firing