Topic > Case Study - 1966

OverviewZappos, founded in 1999 by Nick Swinmurn, became the first online retailer specializing in footwear. Over the next eight years, sales steadily increased, and by 2008 Zappos had surpassed its goal of one billion gross merchandise sales. Strategic partnerships with brands like Nike and Burberry have allowed the company to create several vertical websites for specialty items under the Zappos corporate umbrella. This prosperity allowed the company to expand its product line to include items such as handbags, sunglasses, clothing, watches, linens, luggage, cosmetics and electronics. In July 2009, Amazon announced that it had reached an agreement to acquire Zappos, and the merger brought together two companies with similar customer service ideologies. Since its inception, Zappos has prided itself on providing exceptional customer service, and every employee it hires undergoes five weeks of training in customer loyalty before they begin filling the role for which they were hired. Zappos is committed to hiring people who share the mindset that customer satisfaction is a priority and offers trainees $2000 to resign during training if they don't feel like a good fit for the organization. Despite employing over 1300 people, Zappos has maintained a fairly flat structure with open communication and transparency at all levels of the organization. Through a culture of caring with an emphasis on building a team and family of its employees, Zappos has managed to create an environment where staff are motivated and able to meet work and individual needs. Identifying Issues Obstacles and complications are often unavoidable as companies embark on the process… half of the paper… a phase that does not necessarily warrant changes can have a negative impact on employee attitudes. By maintaining a separate identity, Zappos can reiterate to its employees a sense of community and family values ​​that can strengthen employee loyalty and commitment. Disadvantages While Zappos' current culture and values ​​are very effective in producing empowered, engaged and motivated employees who are driven to excellence in customer service, there is a disadvantage to remaining static. Organizations must change to reflect changes in the overall structure of the organization, as often happens during mergers. Technological improvements, workforce demographic fluctuations, and market conditions are also all impetuses for change. Preserving the existing culture and excluding expert advice from Amazon management could hinder Zappos' growth and development.