Zappos: Delivering Customer Satisfaction

Abstract

In this report, we will study the ethical culture and framework of Zappos, and the challenges it now faces. We will also examine how Zappos leadership fosters an environment of happiness for its stakeholders. In addition, we will consider the manner in which Zappos’ philosophy has impacted its perception of being the most untraditional when it comes to its business model. Finally, we will take a look at the challenges that Zappos still face, and how they keep stakeholders informed of its practices.

ZAPPOS: DELIVERING CUSTOMER SATISFACTION

In 1999, Nick Swinmurn started an online website to sell shoes. The company was the middleman, transferring orders to customers and the suppliers. Tony Hsieh, an investor, became the CEO in 2000, with a salary of $24. The company struggled early on but soon began to make a profit after deciding to house its inventory. They would handle the fulfillment and the shipping along with providing exceptional customer service. The company had now relocated to Las Vegas, amongst a larger pool of experienced call center workers.

In 2010, Amazon bought Zappos for $1.2 billion and kept Hsieh on as CEO. He acquired $214 million for the acquisition, and Amazon placed $40 million for distribution to Zappos employees. The company was reorganized into ten companies under the Zappos family name. (Ferrell, Fraedrich, & Ferrell, 2015)

Analyze the manner in which Zappos’ leadership has fostered a culture of ethicalness in the company. Suggest two (2) actions that other companies can take in order to mimic this culture.

The manner in which Zappos’ leadership has fostered a culture of ethicalness in the organization was through its ability to be transparent. Zappos transparency played a vital role in its business model. Employees were kept abreast of the enterprise’s performance and were encouraged to share information about the company, through its monthly newsletter, “Ask Anything.”...