Case 8 Zappos

Week 3 Homework

Case 8: Zappos: Delivering Customer Service

1. Does Zappos effectively focus on stakeholder happiness, and how does this approach affect the ethical culture?

CEO of Zappos Tony Hsieh said “It’s a brand about happiness, whether to customers or employees or even vendors.” (Ferrell, Fraedrich, & Ferrell, 2015) Zappos believes in “happiness” in the employees, in their customers, and in their stakeholders. They have 10 core values that are the heart of their culture and business model. A few of these are: build a positive team and family spirit, create fun and a little weirdness, build open and honest relationships with communication, and deliver WOW through service. These values demonstrate how focused they are as a company to be one that will have every interaction be a “happy” one.

For the consumer they offer: free shipping on all orders both ways, an easy to find 1-800 number, a warehouse that is 24/7, a 365 day easy return policy, and exceptional customer service. Each one of these ways allows the customer to feel special and that they matter leaving them happy with the company and their experience.

For the employee they offer a variety of benefits that many other companies don’t come close to. Each employee is offered insurance that includes; medical, vision, dental, and life for the employee and their dependents. The company also offers extensive training, a 40% employee discount, free lunches and snacks, life coaching, pre-paid legal services, a car pool program, and a flexible spending account.

Their focus to their employees and customers maintain loyalty and with loyalty comes satisfaction and growth. Zappos knows their stakeholders will be “happy” with profits and being invested in a company that is seen as a one of a kind.

2. Has Zappos developed long-term relationships with customers and employees that provide a competitive advantage in the purchase of shoes and other products?

Zappos believes customer service is the key to...