Zappos.com Inc


A company that I am thinking about writing in paper2 is Zappo.com Inc. Zappos.com is an online shoe and apparel shop currently based in Henderson, Nevada.In July 2009, the company announced it would be acquired by Amazon.com in an all-stock deal worth about $1.2 billion. Since its founding in 1999, Zappos has grown to be the largest online shoe store.

One reason that I like about Zappos is it places a huge emphasis on the company culture and core values. Zappos struggled badly in the early years but it changes mission to serve customer better rather than selling shoes. Now its main mission become creating memorable online customer experience and provide superior customer service. Tony Hsieh, the CEO of Zappos said “Our whole goal at Zappos is for the Zappos brand to be about the very best customer service and customer experience. The marketing budgets were cut back and instead invested on hiring employees who are eager to serve customers. In fact, Zappos offers $2,000 compensation to leave the company to every new hire after undergoing training before taking a permanent position at Zappos. Whoever takes the compensation is considered not suited to the company culture anyway. But 97% of new hires reject the offer anyway. Zappos’ core value is based on the notion that “happy employee serves customers better” and as a result, more than 75% of the customers come back and buy from Zappos again and spread good words about Zappos. In other words, its customers do marketing for Zappos and the sales have continued to soar in recent years.

I think Zappos is a good example of good business practice and corporate culture because it places its employees and customers’ welfare ahead of shareholders’ wealth. In doing so, Zappos achieved high customer satisfaction and loyalty that in turn increases revenue and secure a sustainable long-term future, thereby fulfilling shareholders expectations simultaneously. It will be interesting to analyze how “fair” Zappos business operations and treatment to the suppliers and empolyees. Fortune magazine ranks Zappos at 11th in 2012 as “The Best Company to Work For”. In addition, its customers centered business strategy can be analyzed to see to what degree it represents “Just distribution of goods” among suppliers, Zappos, and the shareholders.

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One thought on “Zappos.com Inc

  1. It’s really interesting to hear that Zappos cut their marketing budget in order to hire employees more willing to serve customers better. In my opinion, their low budget commercials with puppets that portray the excellent customer service of the company are just as effective as commercials that could have been produced with a higher budget. In your research, you’ll also be able to really determine the criteria for “the best company to work for” lists, which will be really cool.

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