zappos.com case study

• Newsletters
• Best Industries
• Business Plans
• Home-Based Business
• The UPS Store
• Customer Service
• Black in Business
• Your Next Move
• Female Founders
• Best Workplaces
• Company Culture
• Public Speaking
• HR/Benefits
• Productivity
• All the Hats
• Digital Transformation
• Artificial Intelligence
• Bringing Innovation to Market
• Cloud Computing
• Social Media
• Data Detectives
• Exit Interview
• Bootstrapping
• Crowdfunding
• Venture Capital
• Business Models
• Personal Finance
• Founder-Friendly Investors
• Upcoming Events
• Inc. 5000 Vision Conference
• Become a Sponsor
• Cox Business
• Verizon Business
• Branded Content
• Apply Inc. 5000 US

Inc. Premium

Uncommon Service: The Zappos Case Study

An excerpt from the book 'uncommon service: how to win by putting customers at the core of your business,' by frances frei and anne morriss..

Clarity: Know Where You're Going

Zappos will take an order as late as midnight and deliver it to the customer's doorstep before breakfast. It has the world's largest selection of shoes, and its service includes free returns. If it doesn't have the shoe you want in stock or in your size, a Zappos call center employee will go to three competitors' sites to try to help you locate what you want to buy. Seventy-five percent of its business comes from repeat customers, despite the fact that its prices are far from the lowest. (Price is an area where Zappos has made a conscious trade-off in its service model in order to deliver exceptional service.)

It's not surprising, then, that managers from other companies--including many from service and quality leaders like Southwest and Toyota--make regular pilgrimages to Zappos facilities to learn how the company pulls it off. Everyone wants to know what the heck is going on. A quick look around reveals that part of its success is the company's IT strategy, including a real-time inventory management system that is 99 percent accurate, compared with accuracy rates as low as 40 percent in other areas of retail. But what gets visitors every time are the clues to Zappos's true competitive advantage: its culture. And no one inside the company is surprised.

The most visible champion of Zappos's culture, naturally enough, is president and CEO Tony Hsieh (pronounced "Shay"). Hsieh is crystal clear on the culture he needs to make the company thrive, and he and his team have broken it down into ten core company values:

 1. Deliver wow through service.

 2. Embrace and drive change.

 3. Create fun and a little weirdness.

 4. Be adventurous, creative, and open-minded.

 5. Pursue growth and learning.

 6. Build open and honest relationships with communication.

 7. Build a positive team and family spirit.

 8. Do more with less.

 9. Be passionate and determined.

 10. Be humble.

Hsieh embodies these values. He is passionate, positive, fun, humble. And a little weird. As the fearless leader of a high-profile shoe company, Hsieh unapologetically wore the same pair of shoes every single day for two years. He then replaced them with the exact same pair. Hsieh's definition of weird, however, is closer to authentic or real. He's betting that the "real you" will be more valuable to Zappos than the safe, watered-down version that usually shows up in a work environment. So go ahead, be a little weird.

Early in his career, Hsieh had a breakthrough about how much culture mattered to the performance and motivation of employees. He sold a software company he had founded when he realized that even he no longer wanted to come to work, primarily because of the culture. Now Hsieh does many things you'd expect from an enlightened CEO, like taking calls at the call center on holidays to give his employees a break and staying in direct touch with his customers.

But what really sets Hsieh and his team apart is their deep awareness that culture is the company's most important asset. "Service is a by-product of culture," says former chief financial officer Alfred Lin, as are things like supplier behavior and employee turnover. In 2005, when the company's call center moved from the Bay Area to Las Vegas, an astonishing 80 percent of its California employees relocated--for a $13-an-hour job. In 2008, a year in which the average turnover at call centers was 150 percent, turnover at Zappos was 39 percent (including turnover owing to promotions). Managers attribute the loyalty to a culture that cultivates the passion, purpose, and humanity of its employees.

But it's not just management that gets it. The conviction that culture is key is embraced throughout the ranks at Zappos. It's so central to the company's belief system, in fact, that the company publishes the Zappos Culture Book , which is updated regularly and contains hundreds of unscripted comments and essays written by Zappos employees and vendors about the company's culture, why it matters, and how it affects what they do every day. It was conceived as a training tool for new hires and partners, but consumption of the book has gone way beyond that internal circle. Ringing in at 348 pages in the 2009 edition, it's a moving and persuasive testament to the power of employee engagement ("happiness" in Zappos-speak), and the role of culture in eliciting it. We recommend buying it and just paging through.

Here's a taste, from Abbie "Abster" M., an employee who had been working at the company for three-plus years:

The Zappos culture to me is unlike anything I've ever experienced before. It's always fun and weird, we're all creative and open-minded, passionate and determined, but most of all, we're humble. I think it's because most of us have worked in horrible dead-end jobs before and can cherish our Zappos culture for what it is. It's what makes me want to come to work every day, even my weekends.  . . . I hear so many horror stories from friends about the places they work and it only makes me feel that much more fortunate to be a part of the Zappos family. I can't imagine my life without Zappos, and the amazing people that I work with.

The quote that moved us most was from Ryan A.: "At my last job I was afraid to be anything: right, wrong, smarter, dumber . . . At Zappos being yourself is the best thing you can do." Perhaps the cultural feature we observe most often is unproductive fear, fear of looking bad or doing something wrong. If organizations did nothing else but address that part of their environment, we're confident that the creativity and engagement of their people would have a real chance of being unleashed. Human beings are not at their best in a defensive, self-distracted crouch.

Hsieh named his book on building Zappos Delivering Happiness , but he and his team didn't just deliver happiness for its own sake. Like IDEO's relationship with creativity, Zappos understood that the happiness of its employees, partners, and customers was a deadly serious endeavor, the most reliable route to sustaining excellence in the industry in which Zappos chose to compete. Everyone inside Zappos, from the CEO to the front line, understood the link between its culture of happiness and the company's daily performance. What's the cultural analog in your own business? What's your version of happy?

Reprinted by permission of Harvard Business Review Press. Excerpted from Uncommon Service: How to Win by Putting Customers at the Core of Your Business. Copyright 2012, Frances Frei and Anne Morriss. All rights reserved.

The Daily Digest for Entrepreneurs and Business Leaders

Privacy Policy

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

How I Did It: Zappos’s CEO on Going to Extremes for Customers

In 2004 the biggest problem the online shoe retailer Zappos faced was how to staff its customer call center with dedicated, high-caliber service reps. The company’s headquarters were in San Francisco, where the high cost of living—and the upwardly mobile Silicon Valley mentality—deterred people from making customer service a career. Although it is an internet company, Zappos finds that most customers telephone at least once at some point. Its philosophy is to view every one of the thousands of phone calls and e-mails it receives daily as an opportunity to build the very best customer service into the brand.

To do that, Zappos would need to find call center reps elsewhere. But the outsourcing possibilities were disappointing, and the company’s previous experience with using vendors for warehousing and shipping had been poor. Hsieh and his team realized that customer service should permeate the whole company, not just one department. So they decided to move their headquarters to Las Vegas, a 24/7 city where employees are used to working late hours and the economy is focused on hospitality. Surprisingly, more than 75% of the staff was willing to relocate, and the company culture became even stronger as a result of the move.

Although Amazon now owns Zappos—which has expanded into clothing, housewares, cosmetics, and other items—Hsieh’s customer service still strives to make a personal connection with shoppers. He calls the Zappos reps the best in the world.

In search of high-caliber employees to staff its call center, Zappos relocated the entire company from San Francisco to Las Vegas in 2004. Here’s why the move made sense.

In the 11 years since Zappos was founded, we’ve had to make some big decisions. One of the most significant came in early 2004, over lunch at Chevys, a chain Mexican restaurant in San Francisco. We hadn’t expected to make a life-changing choice over a plate of fajitas, but when you’re part of a fast-growing company, a lot of decisions arise at unlikely moments.

• TH Tony Hsieh is the CEO of Zappos.com, Inc. During the past 10 years, the company has grown from almost no sales to more than $1 billion in annual gross merchandise sales, driven primarily by repeat customers and word of mouth.

Partner Center

Business Case Study: Zappos, A Success Story of Customer Service, Culture & Holocracy

Zappos: a case study in building a successful business, introduction:.

Zappos, an online shoe retailer, has become a household name in the world of e-commerce. Founded in 1999, the company has gone on to achieve great success, attracting attention from business experts and industry leaders alike. This case study will examine Zappos’ journey from its early days to its current status as one of the most successful e-commerce companies in the world.

Market Condition and Opportunities:

When Zappos first entered the market, the e-commerce industry was still in its infancy. Despite this, the company saw a huge opportunity in the online retail sector, particularly for shoes. At the time, most online retailers were still focused on books, music, and electronics. Zappos saw an opportunity to differentiate itself by focusing solely on shoes, offering a vast selection and outstanding customer service.

Early Wins:

Zappos' first few wins were a result of its focus on customer service and its unique company culture. The company's commitment to providing the best possible customer experience, combined with its willingness to take risks and try new things, helped it stand out in a crowded market. For example, Zappos was one of the first companies to offer free shipping and free returns, which helped to build customer loyalty. Additionally, the company's focus on employee happiness and well-being helped to create a positive working environment and contributed to its success.

Management Decisions:

Zappos' management team made a number of key decisions that helped the company achieve its early wins and reach new heights. One of the most important was its decision to focus on customer service and create a unique company culture. The company also made strategic investments in technology and marketing, which helped to build its brand and reach new customers. Additionally, Zappos was able to attract top talent by offering competitive salaries and benefits, as well as creating a positive and supportive work environment.

Secret Sauce:

Zappos' secret sauce for early success was its focus on customer service and its unique company culture. The company's commitment to providing the best possible customer experience, combined with its willingness to take risks and try new things, helped it stand out in a crowded market. Additionally, Zappos' focus on employee happiness and well-being helped to create a positive working environment and contributed to its success.

One famous story that showcases Zappos' commitment to customer service is when a customer called in to purchase a pair of shoes for her wedding, but the shoes did not arrive in time for the event. The customer service representative she spoke with went above and beyond and overnighted her a new pair of shoes, at no extra charge, so that she would have them in time for her wedding. The customer was so impressed with the level of service she received that she shared her story online, and it quickly went viral, bringing a lot of positive attention to the company.

Another example of Zappos' commitment to customer service is their "WOW" philosophy, which states that employees should do whatever it takes to make the customer happy, even if that means going above and beyond what is expected. This philosophy has led to many memorable moments for customers, such as a customer service representative spending over two hours on the phone with a customer, helping them find the perfect pair of shoes.

Capitalizing on Early Wins:

Zappos was able to capitalize on its early wins by expanding its product offerings and improving its website. The company also made strategic investments in technology and marketing, which helped to build its brand and reach new customers. Additionally, Zappos continued to focus on customer service and employee happiness, which helped to maintain its competitive advantage.

Scaling the Company:

Zappos was able to scale its business by expanding its product offerings and improving its website. The company also made strategic investments in technology and marketing, which helped to build its brand and reach new customers. Additionally, Zappos continued to focus on customer service and employee happiness, which helped to maintain its competitive advantage.

Sustaining Competition and Economic Times:

Zappos faced intense competition from established players in the online retail space such as Amazon, but the company found its unique selling proposition in its company culture and customer service. Zappos focused on providing an exceptional customer experience through fast and free shipping, a 365-day return policy, and 24/7 customer service. This differentiation strategy allowed Zappos to stand out in a crowded marketplace and to continue to grow despite the 2008 economic downturn.

In 2009, Zappos was acquired by Amazon for $1.2 billion, but the company continued to operate as an independent subsidiary. The acquisition allowed Zappos to leverage Amazon's resources to further expand its reach, but the company remained true to its roots and continued to prioritize its unique company culture and customer-focused approach.

Unique Approach to Management and Organizational Structure

Zappos adopted a unique management style called Holocracy in 2013, which aimed to eliminate traditional hierarchical structures and promote self-governance. This innovative approach aimed to empower employees and encourage them to take ownership of their work. Instead of traditional job titles, employees were organized into autonomous teams and given the freedom to make decisions that impacted their work. This allowed Zappos to foster a culture of creativity and innovation, where employees were encouraged to think outside the box and come up with new and innovative solutions. The results were significant, with increased employee engagement, improved productivity, and a more streamlined decision-making process. Holocracy also helped Zappos stay true to its core values of putting the customer first and promoting a fun, quirky and engaging workplace culture. To this day, Zappos continues to be a leader in adopting alternative management styles and continues to be a case study for businesses looking to promote employee engagement and organizational efficiency.

The Fundraising Journey of Zappos:

Zappos is known for its quirky and unique approach to business, and that extends to the way they raised funds for the company. In the early days, Nick Swinmurn, the founder of Zappos, had a tough time raising funds for his startup. But he eventually found success by approaching Tony Hsieh, a successful entrepreneur, who invested in Zappos in 1999. Hsieh was impressed with Swinmurn's vision and the potential of the company, and he saw the opportunity to apply his own experience in online marketing to help grow the business.

Zappos continued to raise funds through later rounds, including a Series C round led by Sequoia Capital, which brought in $35 million in 2004. This funding allowed the company to invest in infrastructure, marketing, and growth initiatives.

One interesting story about Zappos' fundraising efforts is the company's decision to turn down a $200 million offer from Amazon in 2000. Zappos' leadership team saw the potential for the company to become much bigger than what Amazon was offering, and they decided to go it alone. This decision proved to be a wise one, as Zappos continued to grow and eventually sold to Amazon in 2009 for a whopping $1.2 billion.

This story highlights the importance of vision and the willingness to take calculated risks in business. Zappos' leadership team believed in their vision and took a bold move by turning down a large sum of money in order to achieve their long-term goals. This decision was a testament to the company's commitment to building a unique and successful brand, and it helped lay the foundation for Zappos' success as a company.

Actionable Takeaways:

• Prioritize company culture and customer experience to create a sustainable competitive advantage.
• Leverage technology and resources to expand reach, but remain true to company values and approach.
• Continuously innovate and experiment to stay ahead of the curve.
• In conclusion, Zappos' success story serves as a shining example of what can be achieved through a customer-focused, culture-driven approach. By following in the footsteps of Zappos, companies can position themselves for long-term success and create a positive impact on their customers and employees.

"10 Things Every Business Student Should Learn From Zappos"

Zappos, the online shoe and clothing retailer, has become a leader in the e-commerce industry through its innovative and customer-centric approach to business. As a former advisor at Y Combinator, I have seen firsthand how Zappos’ success can be a valuable source of inspiration and learning for business students. Here are 10 things that every business student should learn from Zappos:

• Customer Service is KeyZappos’ commitment to providing exceptional customer service sets it apart from its competitors. The company’s approach to customer service is so unique that it is often cited as the primary reason for its success. For example, Zappos’ call center employees are empowered to do whatever it takes to satisfy customers, even if that means spending hours on the phone with a single customer.
• Embrace Culture and ValuesZappos’ company culture and values are central to its success. The company places a strong emphasis on creating a positive and enjoyable work environment, and it encourages employees to be themselves and have fun at work. This has resulted in a team of highly motivated and engaged employees who are committed to delivering exceptional customer service.
• Prioritize Employee HappinessZappos recognizes the importance of employee happiness in driving business success. The company has implemented a number of programs and initiatives designed to promote employee wellbeing, including a “Paid Time Off” program, which allows employees to take paid time off whenever they need it. This has resulted in a highly motivated and engaged workforce that is committed to delivering outstanding customer service.
• Innovate ContinuouslyZappos has a culture of innovation and is always looking for ways to improve its products and services. The company regularly launches new initiatives and experiments with new business models, which has allowed it to stay ahead of its competitors and maintain its position as an industry leader.
• Focus on People, Not Just ProductsZappos’ success is built on its focus on people, not just products. The company places a strong emphasis on building relationships with its customers, employees, and partners, which has helped it to create a loyal and engaged customer base.
• Encourage Employee EmpowermentZappos empowers its employees to make decisions and take risks, which has helped to foster a culture of innovation and creativity. The company encourages its employees to share their ideas and provides them with the resources and support they need to bring their ideas to life.
• Foster a Sense of CommunityZappos has a strong sense of community and encourages its employees, customers, and partners to engage with one another. This has helped to create a loyal customer base and a positive company culture, which are key to its success.
• Lead with PurposeZappos is driven by a clear sense of purpose, which is to deliver happiness to its customers, employees, and partners. This purpose guides all of the company’s decision-making and helps to keep it focused on its goals.
• Embrace FailureZappos recognizes the value of failure and encourages its employees to take risks and embrace failure as a learning opportunity. This has helped the company to innovate and continuously improve its products and services.
• Focus on Long-Term GrowthZappos is focused on long-term growth and has a long-term perspective on its business. This has helped it to weather economic downturns and remain competitive in a rapidly changing industry.

In conclusion, Zappos success is a result of its innovative and customer-centric approach to business. From its commitment to exceptional customer service, to its focus on employee happiness and empowerment, to its continuous innovation, Zappos is a valuable source of inspiration for business students. By incorporating these lessons into their own approach to business, students can build successful companies that are driven by purpose, innovation, and a focus on people.

“The author generated this text in part with GPT-3, OpenAI’s large-scale language-generation model. Upon generating draft language, the author reviewed, edited, and revised the language to their own liking and takes ultimate responsibility for the content of this publication.”

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Subscribe now!

Maximize Your Potential with Every Issue. Join the community of 10,000+ readers who receive exclusive insights on personal growth.

Join now to receive exclusive insights & actionable steps in your inbox.

Ask me later

• Harvard Business School →
• Faculty & Research →
• October 2009 (Revised June 2011)
• HBS Case Collection

Zappos.com 2009: Clothing, Customer Service, and Company Culture

• Format: Print
• | Pages: 27

About The Authors

Frances X. Frei

Robin J. Ely

More from the authors.

• November–December 2023
• Harvard Business Review

Storytelling That Drives Bold Change

• Faculty Research

Move Fast and Fix Things: The Trusted Leader's Guide to Solving Hard Problems

• September 2022

Marsha Simms: Trailblazer in Corporate Law

• Storytelling That Drives Bold Change  By: Frances X. Frei and Anne Morriss
• Move Fast and Fix Things: The Trusted Leader's Guide to Solving Hard Problems  By: Frances X. Frei and Anne Morriss
• Marsha Simms: Trailblazer in Corporate Law  By: Robin Ely, Boris Groysberg and Colleen Ammerman

About Stanford GSB

• The Leadership
• Dean’s Updates
• School News & History
• Commencement
• Business, Government & Society
• Centers & Institutes
• Center for Entrepreneurial Studies
• Center for Social Innovation
• Stanford Seed

About the Experience

• Learning at Stanford GSB
• Experiential Learning
• Guest Speakers
• Entrepreneurship
• Social Innovation
• Communication
• Life at Stanford GSB
• Collaborative Environment
• Activities & Organizations
• Student Services
• Housing Options
• International Students

Full-Time Degree Programs

• Why Stanford MBA
• Academic Experience
• Financial Aid
• Why Stanford MSx
• Research Fellows Program
• See All Programs

Non-Degree & Certificate Programs

• Executive Education
• Stanford Executive Program
• Programs for Organizations
• The Difference
• Online Programs
• Stanford LEAD
• Seed Transformation Program
• Aspire Program
• Seed Spark Program
• Faculty Profiles
• Academic Areas
• Awards & Honors
• Conferences

Faculty Research

• Publications
• Working Papers
• Case Studies

Research Hub

• Research Labs & Initiatives
• Business Library
• Data, Analytics & Research Computing
• Behavioral Lab

Research Labs

• Cities, Housing & Society Lab
• Golub Capital Social Impact Lab

Research Initiatives

• Corporate Governance Research Initiative
• Corporations and Society Initiative
• Policy and Innovation Initiative
• Rapid Decarbonization Initiative
• Stanford Latino Entrepreneurship Initiative
• Value Chain Innovation Initiative
• Venture Capital Initiative
• Career & Success
• Climate & Sustainability
• Corporate Governance
• Culture & Society
• Finance & Investing
• Government & Politics
• Leadership & Management
• Markets and Trade
• Operations & Logistics
• Opportunity & Access
• Technology & AI
• Opinion & Analysis
• Email Newsletter

Welcome, Alumni

• Communities
• Digital Communities & Tools
• Regional Chapters
• Women’s Programs
• Identity Chapters
• Find Your Reunion
• Career Resources
• Job Search Resources
• Career & Life Transitions
• Programs & Webinars
• Career Video Library
• Alumni Education
• Research Resources
• Volunteering
• Alumni News
• Class Notes
• Alumni Voices
• Contact Alumni Relations
• Upcoming Events

Admission Events & Information Sessions

• MBA Program
• MSx Program
• PhD Program
• Alumni Events
• All Other Events
• Operations, Information & Technology
• Organizational Behavior
• Political Economy
• Classical Liberalism
• The Eddie Lunch
• Accounting Summer Camp
• California Econometrics Conference
• California Quantitative Marketing PhD Conference
• California School Conference
• China India Insights Conference
• Homo economicus, Evolving
• Political Economics (2023–24)
• Scaling Geologic Storage of CO2 (2023–24)
• A Resilient Pacific: Building Connections, Envisioning Solutions
• Adaptation and Innovation
• Changing Climate
• Civil Society
• Climate Impact Summit
• Climate Science
• Corporate Carbon Disclosures
• Earth’s Seafloor
• Environmental Justice
• Operations and Information Technology
• Organizations
• Sustainability Reporting and Control
• Taking the Pulse of the Planet
• Urban Infrastructure
• Watershed Restoration
• Junior Faculty Workshop on Financial Regulation and Banking
• Ken Singleton Celebration
• Marketing Camp
• Quantitative Marketing PhD Alumni Conference
• Presentations
• Theory and Inference in Accounting Research
• Stanford Closer Look Series
• Quick Guides
• Core Concepts
• Journal Articles
• Glossary of Terms
• Faculty & Staff
• Researchers & Students
• Research Approach
• Charitable Giving
• Financial Health
• Government Services
• Workers & Careers
• Short Course
• Adaptive & Iterative Experimentation
• Incentive Design
• Social Sciences & Behavioral Nudges
• Bandit Experiment Application
• Conferences & Events
• Get Involved
• Reading Materials
• Teaching & Curriculum
• Energy Entrepreneurship
• Faculty & Affiliates
• SOLE Report
• Responsible Supply Chains
• Current Study Usage
• Pre-Registration Information
• Participate in a Study

Zappos: Happiness in a Box

• See the Current DEI Report
• Supporting Data
• Research & Insights
• Share Your Thoughts
• Search Fund Primer
• Affiliated Faculty
• Faculty Advisors
• Louis W. Foster Resource Center
• Defining Social Innovation
• Impact Compass
• Global Health Innovation Insights
• Faculty Affiliates
• Student Awards & Certificates
• Changemakers
• Dean Jonathan Levin
• Dean Garth Saloner
• Dean Robert Joss
• Dean Michael Spence
• Dean Robert Jaedicke
• Dean Rene McPherson
• Dean Arjay Miller
• Dean Ernest Arbuckle
• Dean Jacob Hugh Jackson
• Dean Willard Hotchkiss
• Faculty in Memoriam
• Stanford GSB Firsts
• Class of 2024 Candidates
• Certificate & Award Recipients
• Dean’s Remarks
• Keynote Address
• Teaching Approach
• Analysis and Measurement of Impact
• The Corporate Entrepreneur: Startup in a Grown-Up Enterprise
• Data-Driven Impact
• Designing Experiments for Impact
• Digital Marketing
• The Founder’s Right Hand
• Marketing for Measurable Change
• Product Management
• Public Policy Lab: Financial Challenges Facing US Cities
• Public Policy Lab: Homelessness in California
• Lab Features
• Curricular Integration
• View From The Top
• Formation of New Ventures
• Managing Growing Enterprises
• Startup Garage
• Explore Beyond the Classroom
• Stanford Venture Studio
• Summer Program
• Workshops & Events
• The Five Lenses of Entrepreneurship
• Leadership Labs
• Executive Challenge
• Arbuckle Leadership Fellows Program
• Selection Process
• Training Schedule
• Time Commitment
• Learning Expectations
• Post-Training Opportunities
• Who Should Apply
• Introductory T-Groups
• Leadership for Society Program
• Certificate
• 2024 Awardees
• 2023 Awardees
• 2022 Awardees
• 2021 Awardees
• 2020 Awardees
• 2019 Awardees
• 2018 Awardees
• Social Management Immersion Fund
• Stanford Impact Founder Fellowships
• Stanford Impact Leader Prizes
• Social Entrepreneurship
• Stanford GSB Impact Fund
• Economic Development
• Energy & Environment
• Stanford GSB Residences
• Environmental Leadership
• Stanford GSB Artwork
• A Closer Look
• California & the Bay Area
• Voices of Stanford GSB
• Business & Beneficial Technology
• Business & Sustainability
• Business & Free Markets
• Business, Government, and Society Forum
• Second Year
• Global Experiences
• JD/MBA Joint Degree
• MA Education/MBA Joint Degree
• MD/MBA Dual Degree
• MPP/MBA Joint Degree
• MS Computer Science/MBA Joint Degree
• MS Electrical Engineering/MBA Joint Degree
• MS Environment and Resources (E-IPER)/MBA Joint Degree
• Academic Calendar
• Clubs & Activities
• LGBTQ+ Students
• Military Veterans
• Minorities & People of Color
• Partners & Families
• Students with Disabilities
• Student Support
• Residential Life
• Student Voices
• MBA Alumni Voices
• A Week in the Life
• Career Support
• Employment Outcomes
• Cost of Attendance
• Knight-Hennessy Scholars Program
• Yellow Ribbon Program
• BOLD Fellows Fund
• Application Process
• Loan Forgiveness
• Contact the Financial Aid Office
• Evaluation Criteria
• GMAT & GRE
• English Language Proficiency
• Personal Information, Activities & Awards
• Professional Experience
• Letters of Recommendation
• Optional Short Answer Questions
• Application Fee
• Reapplication
• Deferred Enrollment
• Joint & Dual Degrees
• Entering Class Profile
• Event Schedule
• Ambassadors
• New & Noteworthy
• Ask a Question
• See Why Stanford MSx
• Is MSx Right for You?
• MSx Stories
• Leadership Development
• How You Will Learn
• Admission Events
• Personal Information
• GMAT, GRE & EA
• English Proficiency Tests
• Career Change
• Career Advancement
• Daycare, Schools & Camps
• U.S. Citizens and Permanent Residents
• Requirements
• Requirements: Behavioral
• Requirements: Quantitative
• Requirements: Macro
• Requirements: Micro
• Annual Evaluations
• Field Examination
• Research Activities
• Research Papers
• Dissertation
• Oral Examination
• Current Students
• Education & CV
• International Applicants
• Statement of Purpose
• Reapplicants
• Application Fee Waiver
• Deadline & Decisions
• Job Market Candidates
• Academic Placements
• Stay in Touch
• Faculty Mentors
• Current Fellows
• Standard Track
• Fellowship & Benefits
• Group Enrollment
• Program Formats
• Developing a Program
• Diversity & Inclusion
• Strategic Transformation
• Program Experience
• Contact Client Services
• Campus Experience
• Live Online Experience
• Silicon Valley & Bay Area
• Digital Credentials
• Faculty Spotlights
• Participant Spotlights
• Eligibility
• International Participants
• Stanford Ignite
• Frequently Asked Questions
• Founding Donors
• Location Information
• Participant Profile
• Network Membership
• Program Impact
• Collaborators
• Entrepreneur Profiles
• Company Spotlights
• Seed Transformation Network
• Responsibilities
• Current Coaches
• How to Apply
• Meet the Consultants
• Meet the Interns
• Intern Profiles
• Collaborate
• Research Library
• News & Insights
• Program Contacts
• Databases & Datasets
• Research Guides
• Consultations
• Research Workshops
• Career Research
• Research Data Services
• Course Reserves
• Course Research Guides
• Material Loan Periods
• Fines & Other Charges
• Document Delivery
• Interlibrary Loan
• Equipment Checkout
• Print & Scan
• MBA & MSx Students
• PhD Students
• Other Stanford Students
• Faculty Assistants
• Research Assistants
• Stanford GSB Alumni
• Telling Our Story
• Staff Directory
• Site Registration
• Alumni Directory
• Alumni Email
• Privacy Settings & My Profile
• Success Stories
• The Story of Circles
• Support Women’s Circles
• Stanford Women on Boards Initiative
• Alumnae Spotlights
• Insights & Research
• Industry & Professional
• Entrepreneurial Commitment Group
• Recent Alumni
• Half-Century Club
• Fall Reunions
• Spring Reunions
• MBA 25th Reunion
• Half-Century Club Reunion
• Faculty Lectures
• Ernest C. Arbuckle Award
• Alison Elliott Exceptional Achievement Award
• ENCORE Award
• Excellence in Leadership Award
• John W. Gardner Volunteer Leadership Award
• Robert K. Jaedicke Faculty Award
• Jack McDonald Military Service Appreciation Award
• Jerry I. Porras Latino Leadership Award
• Tapestry Award
• Student & Alumni Events
• Executive Recruiters
• Interviewing
• Land the Perfect Job with LinkedIn
• Negotiating
• Elevator Pitch
• Email Best Practices
• Resumes & Cover Letters
• Self-Assessment
• Whitney Birdwell Ball
• Margaret Brooks
• Bryn Panee Burkhart
• Margaret Chan
• Ricki Frankel
• Peter Gandolfo
• Cindy W. Greig
• Natalie Guillen
• Carly Janson
• Sloan Klein
• Sherri Appel Lassila
• Stuart Meyer
• Tanisha Parrish
• Virginia Roberson
• Philippe Taieb
• Michael Takagawa
• Terra Winston
• Johanna Wise
• Debbie Wolter
• Rebecca Zucker
• Complimentary Coaching
• Changing Careers
• Work-Life Integration
• Career Breaks
• Flexible Work
• Encore Careers
• Join a Board
• D&B Hoovers
• Data Axle (ReferenceUSA)
• EBSCO Business Source
• Global Newsstream
• Market Share Reporter
• ProQuest One Business
• RKMA Market Research Handbook Series
• Student Clubs
• Entrepreneurial Students
• Stanford GSB Trust
• Alumni Community
• How to Volunteer
• Springboard Sessions
• Consulting Projects
• 2020 – 2029
• 2010 – 2019
• 2000 – 2009
• 1990 – 1999
• 1980 – 1989
• 1970 – 1979
• 1960 – 1969
• 1950 – 1959
• 1940 – 1949
• Service Areas
• ACT History
• ACT Awards Celebration
• ACT Governance Structure
• Building Leadership for ACT
• Individual Leadership Positions
• Leadership Role Overview
• Purpose of the ACT Management Board
• Contact ACT
• Business & Nonprofit Communities
• Reunion Volunteers
• Ways to Give
• Fiscal Year Report
• Business School Fund Leadership Council
• Planned Giving Options
• Planned Giving Benefits
• Planned Gifts and Reunions
• Legacy Partners
• Giving News & Stories
• Giving Deadlines
• Development Staff
• Submit Class Notes
• Class Secretaries
• Board of Directors
• Health Care
• Sustainability
• Class Takeaways
• All Else Equal: Making Better Decisions
• If/Then: Business, Leadership, Society
• Grit & Growth
• Think Fast, Talk Smart
• Spring 2022
• Spring 2021
• Autumn 2020
• Summer 2020
• Winter 2020
• In the Media
• For Journalists
• DCI Fellows
• Other Auditors
• Academic Calendar & Deadlines
• Course Materials
• Entrepreneurial Resources
• Campus Drive Grove
• Campus Drive Lawn
• CEMEX Auditorium
• King Community Court
• Seawell Family Boardroom
• Stanford GSB Bowl
• Stanford Investors Common
• Town Square
• Vidalakis Courtyard
• Vidalakis Dining Hall
• Catering Services
• Policies & Guidelines
• Reservations
• Contact Faculty Recruiting
• Lecturer Positions
• Postdoctoral Positions
• Accommodations
• CMC-Managed Interviews
• Recruiter-Managed Interviews
• Virtual Interviews
• Campus & Virtual
• Search for Candidates
• Think Globally
• Recruiting Calendar
• Recruiting Policies
• Full-Time Employment
• Summer Employment
• Entrepreneurial Summer Program
• Global Management Immersion Experience
• Social-Purpose Summer Internships
• Process Overview
• Project Types
• Client Eligibility Criteria
• Client Screening
• ACT Leadership
• Social Innovation & Nonprofit Management Resources
• Develop Your Organization’s Talent
• Centers & Initiatives
• Student Fellowships

🔥 Strategically Advance Your Business in 6 Weeks. 🚀   Secure your spot now!

TEACHING MATERIALS

Blue ocean pedagogical materials, used in nearly 3,000 universities and in almost every country in the world, go beyond the standard case-based method. Our multimedia cases and interactive exercises are designed to help you build a deeper​ understanding of key blue ocean concepts, from blue ocean strategy to nondisruptive creation, developed by world-renowned professors   Chan Kim and Renée Mauborgne . Currently, with over 20 Harvard bestselling cases .

CASES BY TOPIC

TEACHING GUIDE

Bring the Shoe Store to Your Home (Part A)

Author(s):  KIM, W. Chan, MAUBORGNE, Renée, KOO, Oh Young

Case study trailer

This is the first part of two case series of Zappos’s  blue ocean strategic move  as an innovative online shoe retailer. Part A focuses on how Zappos reconstructed the existing boundaries of the online footwear retail industry. It describes Zappos’s distinctive value proposition that is neither an offline nor online shoe store in the conventional sense. The case also introduces how Zappos broke the value-cost trade-off of the conventional online shoe store. The case comes with a theory-based video case, which can be requested below.

Strategy Powered by Culture and People (Part B)

Author(s):   KIM, W. Chan, MAUBORGNE, Renée, KOO, Oh Young

The second part of Zappos case focuses on Zappos’s people proposition, which led to high performance and raised barriers to imitation. It demonstrates the importance of   Fair Process   that builds deep trust and commitment in the company, making it difficult for competitors to imitate Zappos.

Case Study: A

HBSP   |   Case Centre   |   INSEAD

Case Study: B

HBSP  |  Case Centre  |  INSEAD

Teaching Note: A

Teaching Note: B

English: Available to download for free in the Educators’ Space

Lecture Slides

• Predictive Analytics Workshops
• Corporate Strategy Workshops
• Advanced Excel for MBA
• Powerpoint Workshops
• Digital Transformation
• Competing on Business Analytics
• Aligning Analytics with Strategy
• Building & Sustaining Competitive Advantages
• Corporate Strategy
• Aligning Strategy & Sales
• Digital Marketing
• Hypothesis Testing
• Time Series Analysis
• Regression Analysis
• Machine Learning
• Marketing Strategy
• Branding & Advertising
• Risk Management
• Hedging Strategies
• Network Plotting
• Bar Charts & Time Series
• Technical Analysis of Stocks MACD
• NPV Worksheet
• ABC Analysis Worksheet
• WACC Worksheet
• Porter 5 Forces
• Porter Value Chain
• Amazing Charts
• Garnett Chart
• HBR Case Solution
• 4P Analysis
• 5C Analysis
• NPV Analysis
• SWOT Analysis
• PESTEL Analysis
• Cost Optimization

Zappos.com, Inc., and the Warehouse Decision

• Strategy & Execution / MBA EMBA Resources

Next Case Study Solutions

• Coffee Wars in India: Cafe Coffee Day Takes on the Global Brands Case Study Solution
• So Long to SingleStop? (A) Case Study Solution
• So Long to SingleStop? (B): Epilogue Case Study Solution
• J Sainsbury Plc, Road to Recovery Case Study Solution
• Gazelle in 2012 Case Study Solution

Previous Case Solutions

• Development of Food Retailing in India (C): From Farm to Fork via Supermarkets Case Study Solution
• Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. Case Study Solution
• Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players Case Study Solution
• Procter & Gamble, 2015 Case Study Solution
• The Mulliez Family Venture Case Study Solution

Predictive Analytics

August 19, 2024

Popular Tags

Case study solutions.

Case Study Solution | Assignment Help | Case Help

Zappos.com, inc., and the warehouse decision description.

Amazon.com had purchased Zappos in 2009 and was making significant investments in warehouse infrastructure. By early summer 2012, Zappos, a dominant player in the crowded online retail apparel and footwear arena must decide whether to retain its warehouse complex in Kentucky, which it had maintained since 2002, or turn over the operations to Amazon. Should Zappos continue to operate as an entity external to its parent company? Or would advancements and changes in the market be disruptive enough to force Zappos to change in order to remain competitive?

Case Description Zappos.com, Inc., and the Warehouse Decision

Strategic managment tools used in case study analysis of zappos.com, inc., and the warehouse decision, step 1. problem identification in zappos.com, inc., and the warehouse decision case study, step 2. external environment analysis - pestel / pest / step analysis of zappos.com, inc., and the warehouse decision case study, step 3. industry specific / porter five forces analysis of zappos.com, inc., and the warehouse decision case study, step 4. evaluating alternatives / swot analysis of zappos.com, inc., and the warehouse decision case study, step 5. porter value chain analysis / vrio / vrin analysis zappos.com, inc., and the warehouse decision case study, step 6. recommendations zappos.com, inc., and the warehouse decision case study, step 7. basis of recommendations for zappos.com, inc., and the warehouse decision case study, quality & on time delivery.

100% money back guarantee if the quality doesn't match the promise

100% Plagiarism Free

If the work we produce contain plagiarism then we payback 1000 USD

Paypal Secure

All your payments are secure with Paypal security.

300 Words per Page

We provide 300 words per page unlike competitors' 250 or 275

Free Title Page, Citation Page, References, Exhibits, Revision, Charts

Case study solutions are career defining. Order your custom solution now.

Case Analysis of Zappos.com, Inc., and the Warehouse Decision

Zappos.com, Inc., and the Warehouse Decision is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Zappos.com, Inc., and the Warehouse Decision is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Zappos.com, Inc., and the Warehouse Decision case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Zappos.com, Inc., and the Warehouse Decision will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Zappos.com, Inc., and the Warehouse Decision case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Zappos.com, Inc., and the Warehouse Decision, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Zappos.com, Inc., and the Warehouse Decision case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Zappos.com, Inc., and the Warehouse Decision case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Zappos.com, Inc., and the Warehouse Decision

Step 1 – Problem Identification of Zappos.com, Inc., and the Warehouse Decision - Harvard Business School Case Study

The first step to solve HBR Zappos.com, Inc., and the Warehouse Decision case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Zappos Warehouse is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Zappos Warehouse, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Zappos.com, Inc., and the Warehouse Decision. The external environment analysis of Zappos.com, Inc., and the Warehouse Decision will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Zappos.com, Inc., and the Warehouse Decision case study. PESTEL analysis of " Zappos.com, Inc., and the Warehouse Decision" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Zappos.com, Inc., and the Warehouse Decision macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Zappos.com, Inc., and the Warehouse Decision

To do comprehensive PESTEL analysis of case study – Zappos.com, Inc., and the Warehouse Decision , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Zappos.com, Inc., and the Warehouse Decision

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Zappos.com, Inc., and the Warehouse Decision ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Zappos Warehouse is operating, firms are required to store customer data within the premises of the country. Zappos Warehouse needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Zappos.com, Inc., and the Warehouse Decision has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Zappos Warehouse in case study Zappos.com, Inc., and the Warehouse Decision" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Zappos Warehouse in case study “ Zappos.com, Inc., and the Warehouse Decision ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Zappos Warehouse in case study “ Zappos.com, Inc., and the Warehouse Decision ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Zappos.com, Inc., and the Warehouse Decision ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Zappos Warehouse can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Zappos.com, Inc., and the Warehouse Decision case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Zappos Warehouse needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Zappos.com, Inc., and the Warehouse Decision

Social factors that impact zappos.com, inc., and the warehouse decision, technological factors that impact zappos.com, inc., and the warehouse decision, environmental factors that impact zappos.com, inc., and the warehouse decision, legal factors that impact zappos.com, inc., and the warehouse decision, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: zappos.com, inc., and the warehouse decision case study solution.

• sales & marketing ,
• leadership ,
• corporate governance ,
• Advertising & Branding ,
• Corporate Social Responsibility (CSR) ,

Amanda Watson

Leave your thought here

© 2019 Texas Business School. All Rights Reserved

USEFUL LINKS

Follow us on.

Subscribe to our newsletter to receive news on update.

Dark Brown Leather Watch

$200.00 $180.00

Dining Chair

$300.00 $220.00

Creative Wooden Stand

$100.00 $80.00

2 x $180.00

2 x $220.00

Subtotal: $200.00

Free Shipping on All Orders Over $100!

Wooden round table

$360.00 $300.00

Hurley Dry-Fit Chino Short. Men's chino short. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. Made with sweat-wicking fabric. Fitted waist with belt loops. Button waist with zip fly provides a classic look and feel .

Section Navigation

9. Learning from Others 9.1 Introduction: Grouping by Business Models :Cautionary Tales 9.2 A Start 9.3 Coins International 9.4 Fine Art Ceramics 9.5 Halberd Engineering 9.6 Ipswich Seeds 9.7 Seascape e-Art 9.8 Whisky Galore :Case Studies 9.9 Amazon 9.10 Andhra Pradesh 9.11 Apple iPod 9.12 Aurora Health Care 9.13 Cisco 9.14 Commerce Bancorp 9.15 Craigslist 9.16 Dell 9.17 Early Dotcom Failures 9.18 Easy Diagnosis 9.19 eBay 9.20 Eneco 9.21 Fiat 9.22 GlaxoSmithKline 9.23 Google ads 9.24 Google services 9.25 Intel 9.26 Liquidation 9.27 Lotus 9.28 Lulu 9.29 Netflix 9.30 Nespresso 9.31 Netscape 9.32 Nitendo wii 9.33 Open Table 9.34 PayPal 9.35 Procter & Gamble 9.36 SIS Datenverarbeitung 9.37 Skype 9.38 Tesco 9.39 Twitter 9.40 Wal-mart 9.41 Zappos 9.42 Zipcar

Control Panel

9.41 zappos.com, company development.

Zappos is often seen as the model online business: a novel concept, a fulfillment center built from scratch, a US online business that focused foremost on customers, giving them quality, choice and free shipping, and then expansion of the business through the latest in manufacturing and supply management.

From a quiet start, Zappos grew rapidly.

1999 . The company was founded by Nick Swinmurn. Tony Hsieh and Alfred Lin then put in $500,000 from their investment firm Venture Frogs. The company launched in June 1999 as ShoeSite.com, changed a few months later to Zappos so that other goods could be sold. The result was minimal sales, however.

2000 . More investment from Venture Frogs, who also provided office space. Sales were US$ 1.6 million.

2001 . Zappos opened their own fulfillment center in Kentucky. Hsieh and Zappos executives set long-term goals for 2010: $1 billion in sales and inclusion on Fortune's list of The Best Companies to Work For . Sales quadrupled to US$ 8.6 million.

2003. Zappos abandoned drop shipping (accounting for 25% of revenues) to have more control over the customer's experience. Sales were US$ 70 million.

2004 . Zappos received $35 million dollar investment from Sequoia Capital, and a $40 million credit line from Wells Fargo Bank. Sales were US$185 million.

2007 . Merchandise was expanded to include handbags, eyewear, clothing, watches, and kids' items. Sales in 2007 were US$ 840 million.

2008. Zappos sales were US$ 1 billion.

2009 . Zappos was listed at No. 23 on Fortune's Top 100 Companies to Work For . By mutual consent, Zappos was acquired by Amazon. Zappos share-holders received 10 million Amazon.com shares and $ 940 million for their Zappos shares; the employees a separate $40 million in cash: a deal of around $1.2 billion in all. Amazon acquired a company with better (though still slim) operating margins {13}; Zappos got funds and technology for expansion while retaining full control of its brand. {11}

Business Model

Zappos have been successful by:

1. Knowing their customers and fulfilling their needs. 75% are repeat buyers. 2. Providing value for money: not necessarily the cheapest, but quality brands backed by excellent service. 3. Concentrating on high-ticket items with good margins. Average order on Zappos is around $100 and gross margins on shoes are about 50%. {2} 4. Offering free shipping, even for returns (return rate may be 30%) {7} 5. Developing a strong online brand. 6. Maintaining a friendly, caring appearance, through training at all levels and a presence on Twitter, Facebook and YouTube. {9} Usual advertising spend was invested in stellar customer service.

Employees are chosen carefully, for aptitude and personality. Zappos publishes an annual 480-page Culture Book , comprising unedited 2-3 paragraph entries from employees describing their understanding of the Zappos culture. All undergo call-center and loyalty training courses, and are later tested by being offered $2,000 to quit: only 3% accept the offer. {5}

Employees enjoy free lunches, no-charge vending machines, a company library, a nap room, and free health care. They are encouraged to personally decorate their offices and to take part in office get-togethers. Managers must spend 10-20% of their hours 'goofing off' with employees outside the office.

Zappos has grown by search engine marketing {1} and word-of-mouth recommendation. It has spent little on advertising otherwise, but did acquire 6pm.com, a company selling bargain shoes, clothing, and accessories in 2007.

Points to Note

Sources and further reading.

1. Why shoes are great for e-commerce . . . yes, really —a Zappos case study by Nisan Gabbay. Startup Review . September 2006. 2. How I Did It by Tony Hsieh. Inc . 2006. 3. Zappos New Business Model: Have Insight, will Respond by Gord. OutOfMyGord . December 2008. 4. Zappos wants you to return those shoes by Seth Godin. Seth Godin . April 2008. 5. Why Zappos Pays New Employees to Quit—And You Should Too by Bill Taylor. HBR . May 2008. 6. Zappos Core Values . Zappos . 2009. 7. Kevin Hillstrom's Comments on Zappos P&L Statement . MinethatData. 2009. 8. When you buy Zappos, what do you buy? Seth Godin . July 2009. 9. The new social engagement by Soren Gordhamer. Mashable . April 2009. 10. Zappos CEO Tony Hsieh: Customer Focus Key to Record Sales During Retail Slump. W P Carey . January 2009. 11. Zappos CEO's Letter to Staff. WSJ . July 2009. Tony Hsieh's letter after the shoe retailer agreed to be acquired by Amazon.com. 12. Why Zappos Shouldn't Be Your Business Model by Ari Ozick SEO Contrarian . November 2009. 13. The Details behind Amazon's valuation of Zappos. Development Corporate . July 2009. 14. Zappos to Hire 2,000 People in 2011 by Ben Parr. Mashable . November 2010. 15. Zappos. TopTenReview . 2011. 16. Why Is This Man Smiling? by Motoko Rich. NYT . April 2011. 17. Case study: Zappos by Winter Nie and Beverley Lennox. FT . February 2011. 18. A New Sales Model: Employees by Sarah Nassauer. WSJ . March 2011. Zappos' use of videos. 19. Zappos. Wikipedia . 20. Zappos . Company home site 21. Zappos to Hire 2,000 People in 2011 by Ben Parr. Mashable Business . November 2010. 22. The Zappos CEO is trading shoes for urban planning — and spending big bucks to rebuild downtown Las Vegas by Leigh Gallagher. CNNMoney . January 2012. 23. Zappos CEO buys motel, strikes deal to bring young talent downtown by Joe Schoenmann. Las Vegas Sun . March 2012. 24. Zappos.com makes Fortune�s list of best places to work by Richard N. Velotta. Vegas Inc . January 2013.

Zappos: A Case Study into Company Culture 

July 17, 2024

Matt Gainsford

Today, we are diving deep into the enigma that is Zappos, a company whose work culture is practically legendary and has become the yardstick by which success is measured. So, what is their secret sauce? Let's break it down.  

Company culture. It is a term that has been on the lips of every hiring manager and business leader. For many companies, it is a major selling point and something designed to wow potential candidates into joining them. 

The key to building a happy workplace is to create a thriving culture. But what does it mean, how is it quantified, and why has it become so satirized?  

From pizza parties and ping-pong tables to unlimited PTO policies and chances to get involved in altruistic service projects, a great culture can mean many things to many people.   

At Titus Talent, we think we know what it takes to build culture, and for those of you reading this, you might see many similarities between us and the company we will focus on.  

If you are reading this and unfamiliar with who we are, you will likely recognize the subject of our cultural exploration. Today, we are diving deep into the enigma that is Zappos, a company whose work culture is practically legendary and has become the yardstick by which success is measured. So, what is their secret sauce? Let’s break it down.  

Who are Zappos and Why Focus on Them?  

Zappos, an online shoe and clothing retailer founded in 1999, is renowned for its exceptional customer service and innovative corporate culture. Their model has influenced thousands of businesses through numerous case studies and management programs. Zappos empowers customer service representatives to make decisions that best serve customers, often exceeding standard service expectations. They adopted holacracy, a management philosophy replacing the traditional hierarchy with a flat, team-based structure, promoting flexibility, autonomy, and employee empowerment. Operating under ten core values like “Deliver WOW Through Service” and “Create Fun and A Little Weirdness,” Zappos integrates these principles into hiring, training, and daily operations, ensuring a vibrant culture. 

We are focusing on Zappos as a case study in culture because their approach to customer service and employee empowerment sets a benchmark for organizational excellence. Their innovative practices provide valuable insights into building a strong, adaptable company culture. 

Customer Service: The Heartbeat of Zappos  

Zappos did not just put customer service on the map—they redefined it. From day one, their mission was clear: to deliver happiness. It was not just a marketing tagline; it was a core value they lived and breathed. Happiness within (employees) leads to happiness experienced (customers) policies (which are now the norm for many companies, thanks to Zappos) like free shipping and returns, a 365-day return policy, and 24/7 customer support were not just strategic moves. They were expressions of Zappos’ deep-seated belief in putting the customer first. It is a principle woven into the fabric of the company and a big part of why they have been so influential.  

Holacracy: Breaking Down the Hierarchy  

Now, this is where Zappos gets interesting. In 2013, they adopted holacracy—a radical, self-managing system that threw traditional hierarchies out the window. Imagine a company with no rigid job titles, and everyone can take initiative. It is not without its challenges, but this structure fosters an environment of flexibility and autonomy. Employees were empowered to make decisions, innovate, and drive change without the usual bureaucratic red tape. It was a game-changer for Zappos, pushing them to the forefront of organizational innovation. 

Core Values: The DNA of Zappos  

At Zappos, core values are not just words on a wall—they are part of the company’s DNA. They have ten core values, including gems like “Deliver WOW Through Service” and “Create Fun and A Little Weirdness.” These values are exemplified every day. They shape the behavior, decisions, and culture at Zappos. You can feel it when you walk into their offices. There is a palpable energy and alignment from everyone pulling in the same direction. 

Employee Happiness: The Zappos Way  

Tony Hsieh, the late CEO of Zappos, firmly believed that happy employees lead to happy customers. Zappos invests heavily in creating an engaging and fun work environment. We are talking about themed office spaces, wild parties, wellness programs, and continuous learning opportunities. This is not just about perks—it is about creating a workplace where people genuinely love to be. The result? High levels of job satisfaction, loyalty, and productivity that any company would envy. 

Training and Development: Building a Strong Foundation  

Zappos’ commitment to training and development is another cornerstone of their culture. New hires go through an intense four-week training program where they learn about the company’s culture, values, and customer service ethos. It is not just onboarding; it is an immersion into the Zappos way of life. By investing in their people from day one, Zappos ensures that everyone is set up for success and fully integrated into the company culture. 

This dedication to training is backed by compelling data: companies with strong onboarding processes see a 70% improvement in new hire productivity and an 82% boost in retention. Furthermore, organizations that invest in comprehensive training programs report 218% higher income per employee and 24% higher profit margins. It is no wonder that 94% of employees would stay at a company longer if it invested in their career development. By prioritizing training and development, Zappos enhances individual growth and drives organizational success and longevity. 

Transparency: Open and Honest Communication  

Transparent communication is a big deal at Zappos. They believe in sharing information openly, whether it is about the company’s performance, goals, or challenges. This level of transparency builds trust and fosters a collaborative environment where everyone feels informed and involved. Companies with high transparency are more likely to retain 94% of their employees, whereas a lack of transparency can lead to mistrust and a disengaged workforce. It is a refreshing approach that many companies could learn from. 

Creativity and Innovation: Encouraging Bold Ideas  

Zappos champions creativity and innovation. They encourage their employees to think outside the box and are not afraid of failure. This culture of experimentation has led to some incredible ideas and improvements over the years. By giving their team the freedom to innovate, Zappos stays ahead of the curve in a fiercely competitive industry. 

Diversity of thought is crucial for fostering a culture of creativity. It takes an environment where different perspectives are welcomed and actively sought out. This diversity prevents groupthink, which can be dangerous as it leads to uniformity inthinking and stifles innovation. To cultivate this environment, leaders must be mindful of the weight their words carry.When leaders are unaware of their influence, they can unintentionally stifle the ideas of less senior employees, preventing valuable contributions from emerging. Companies that embrace diverse perspectives and encourage open communication are 3.5 times more likely to outperform their peers in generating innovative ideas. Zappos’ inclusive culture ensures that all voices are heard, promoting a dynamic and innovative workplace where creativity thrives. 

The Wrap Up  

So, why has Zappos’ work culture been so influential and esteemed? It is a combination of putting customer service at the core, embracing innovative structures like holacracy, living their core values, focusing on employee happiness, investing in training and development, promoting transparency, and encouraging creativity and innovation. Zappos has shown us that when you prioritize culture, you create a powerful foundation for success. At Titus, we share a similar approach to that of Zappos and believe the “People First” term is a potent reminder of how to develop culture, as opposed to a hollow value used to virtue signal to potential Partners and future employees.  

Building a culture takes time, and a successful culture is entirely dependent on the foundations laid and the commitment to living them out. Zappos has been something of a lighthouse in this arena and is worth exploring if you are exploring the creation of your company culture. If you are serious about developing your company culture, recovering from layoffs, or counting the cost of how your hiring strategy affects your growth strategy, check out our talent optimization opportunities. 

Learning & Development  

At Titus Talent, we have talent optimization services specifically designed with culture, leadership, and growth in mind.We believe that hiring great people is the starting point, but to truly thrive, people need continuous growth and development. Our TO experts empower leaders to enhance their people strategies, driving performance and satisfaction within their teams. For our customers, this means working with an organization that is not only invested in attracting top talent but also committed to nurturing and developing that talent, ultimately leading to higher productivity, innovation, and long-term success. Learn more here: https://www.titustalent.com/talent-strategies/talent-optimization/

Let's Start a Conversation

TITUS INSIGHTS

Refreshing perspectives and practical expertise from the Titus team.

Committed To Radical Generosity

Our dedication to radical generosity keeps us focused on what matters most, and it allows us to make a trusted and lasting impact on the world around us. It’s the foundation of our culture and our partnerships.

Advancing Talent Acquisition with Skills-Based Hiring

Talent Talks: The Truth About Accountability with Marshall Krupp

Building High Performance Culture: Zappos Case Study

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

The primary product Zappos offers is footwear although the company is constantly increasing its range of products (see figure 1). The peripheral goods and services are not essential, but they enhance the primary product and add value (Collier & Evans, 2016). Zappos provides such peripheral goods as handbags, accessories, jewelry, watches, and clothing. These items are not essential when marketing footwear, but people often try to buy things that match.

Therefore, when a customer buys the shoes of their dream, they want something nice to wear and enhance their appearance. The seller’s peripheral services include call center services, size conversion charts, and Spanish-speaking representatives. Many online retailers offer such services, which adds value and makes customers’ buying experience more enjoyable.

Free shipping can be regarded as both a common peripheral service and a variant. Variants are products or services that are unique and differentiate a company from its competitors (Collier & Evans, 2016). Zappos revolutionized e-commerce in a way since it was the first seller to offer free shipping in both ways, but, now, many online retailers provide such a service. Enhanced tracking features and Zappos Adaptive are also variants that make the organization well-recognized.

However, creative telemarketers are the primary competitive advantage of the company and one of its most valued variants. Zappos employees are encouraged to “wow” customers and are empowered to make decisions (Collier & Evans, 2016, p. 25). Although the company sells goods produced by other manufacturers, Zappos is completely responsible for their quality.

Primary management processes at Zappos involve the delivery of goods, filling orders, and the provision of support through call centers. Therefore, to execute an order, Zappos employees manage these primary processes. The company is famous for its exclusive service and creative approach to developing relationships with customers. Nevertheless, the effective implementation of these functions can hardly be achieved without support management processes that include purchasing goods from manufacturers, managing inventory and warehouses, and acquiring technology.

Zappos has one of the most efficient information systems that ensure proper data flow and management. Customers can track their orders and even learn about the availability of the items they want (Collier & Evans, 2016). Employees receive updates, reports, as well as reminders, that enable them to manage orders properly. Central general management processes necessary to execute an order at Zappos are information systems and human resources. Human resources management is one of the most remarkable aspects of the organization that pays substantial attention to the empowerment of its employees (Warrick, Milliman, & Ferguson, 2016). Employees are encouraged and trained to be creative when dealing with clients. They do not have protocols or fixed call durations, so they are free to ‘wow’ potential or existing clients.

Operations managers (OM) perform a set of activities that have an influence on the way companies sell their products and services. As far as Zappos is concerned, one of the key OM activities is service encounter design. At Zappos, services are the primary competitive advantage so critical attention is paid to this area. Employees are trained and encouraged to use creative methods to satisfy their customers’ needs. This strategy has proved to be effective as the vast majority of the clients are returning.

Technology selection is another vital OM activity that ensured the company’s popularity among online shoppers. As mentioned above, Zappos has sophisticated software that enables employees to perform their tasks quickly and effectively. Clients also benefit from the use of this system as they can seek for specific items and filter their searches. They can also identify the number of products available, which is an important feature that enhances their purchasing experience.

Finally, facility layout and design activity are often underestimated. At Zappos, the working environment is favorable since employees have comfortable working places that can be decorated to their taste. The balance of effective design and technology (proper devices, desks, chairs) and personal tough (pictures or anything employees might find relevant) is what makes Zappos one of the best companies to work for. These three activities contribute to the development of competitive advantage and excellent performance.

The case of Zappos is illustrative in terms of the difference between service-providing and goods-producing. First, Zappos offers tangible goods, but they do not manufacture anything. The company’s employees help customers to buy the items they want, and this support is hardly tangible. In contrast to goods-producing, customers play an active role in the delivery of services. Zappos’s clients call, ask for discounts, or articulate their needs that can be quite unconventional. The telemarketers of the organization under consideration make sure to address all those needs making their customers co-creators of services. At Zappos, forecasting is not one of the central activities as it is difficult or even impossible to predict the demand for services. The company reacts to the inquiries that appear each day.

While products can be stored and managed easily, services cannot be regarded as an element of inventory. When it comes to Zappos, the services they provide vary from customer to customer. Another difference between products and services is related to service management skills that are essential for the competitiveness of a service-providing company. Retailers’ representatives at Zappos always have extensive data concerning the available goods or services. One more difference is associated with price as it is often difficult to evaluate services especially if they are as unique as Zappos’s services. Finally, time is linked to the differences as well since services are expected to be provided almost immediately while customers understand that time is necessary to produce a thing.

Collier, D. A., & Evans, J. R. (2016). OM (6th ed.). Boston, MA: Cengage Learning.

Warrick, D. D., Milliman, J. F., & Ferguson, J. M. (2016). Lessons learned from Zappos on what it takes to build high performance cultures. Organizational Dynamics, 45( 1), 64-70. Web.

• Hewlett-Packard (HP): Stakeholders in Sustainable Business Transformation
• Dough Pizza: Business Principles in Practice
• The Aspects of the Zappos' Company Success
• The Zappos Company's Business Plan
• Zappos Company Culture Analysis
• Resolving the Supplier Issue: Nissan Motor Co.
• Dyson Company's Strategy in Context
• The Toshiba Accounting Scandal
• Supply Chain for Dough Pizza
• Amazon: The Champion of Customer-Delivered Value
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2021, July 9). Building High Performance Culture: Zappos. https://ivypanda.com/essays/zappos-case-study-project/

"Building High Performance Culture: Zappos." IvyPanda , 9 July 2021, ivypanda.com/essays/zappos-case-study-project/.

IvyPanda . (2021) 'Building High Performance Culture: Zappos'. 9 July.

IvyPanda . 2021. "Building High Performance Culture: Zappos." July 9, 2021. https://ivypanda.com/essays/zappos-case-study-project/.

1. IvyPanda . "Building High Performance Culture: Zappos." July 9, 2021. https://ivypanda.com/essays/zappos-case-study-project/.

Bibliography

IvyPanda . "Building High Performance Culture: Zappos." July 9, 2021. https://ivypanda.com/essays/zappos-case-study-project/.

Pardon Our Interruption

As you were browsing something about your browser made us think you were a bot. There are a few reasons this might happen:

• You've disabled JavaScript in your web browser.
• You're a power user moving through this website with super-human speed.
• You've disabled cookies in your web browser.
• A third-party browser plugin, such as Ghostery or NoScript, is preventing JavaScript from running. Additional information is available in this support article .

To regain access, please make sure that cookies and JavaScript are enabled before reloading the page.

• Order Status
• Testimonials
• What Makes Us Different

Zappos.com Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> Zappos.com

This case introduces Zappos.com, an online shopping store, engaged in providing shoes and clothing items for both men and women available in the market. The company was established in 1999 based in Las Vegas, Nevadaby Nick Swinmurn, who found the inspiration for the idea, when he failed to find a particular pair of shoe in the mall. Therefore, he collaborated with Tony Hsieh and Alfred Lin to sell different variety of shoes online, which helped the companyto target a vast range of customers present in the online market.Furthermore, the company was acquired by Amazon.com in 2009, as the all-stock deal was worth $1.2 billion, as announced by the senior management of the company in the same year. Whereas, it was evaluated that the users available online were not all potential shoppers, as most were casual viewers logging on to adifferent site just to pass time. However, it wasidentifiedthat the company had grown since its establishment towards selling a huge variety of shoe available from a vast variety of brand available in the market. Moreover, the company increased its product range, which included clothing items for both men and women, as well as accessories such as hand bags and wallets.

Additionally, they also sold athletic equipment and kids’ necessity items, such as diaper bags, clothing, etc. It can be further stated that the company had significantly increased its product range and its ability to attract the customers. Moreover, it had also developed a strong brand image in the market through the implementation of effective marketing strategies , which, in turn, allowed the company to increase its revenues streams, which had a substantial favorable impact on its profitability in the market.

Zappos.com Harvard Case Solution & Analysis

Additionally, in an attempt to better manage its operations, the company had divided its customers into different segments, which consisted of premium customers, who were the most profitable and loyal towards the site and were considered as recurring customerswho were highly costly to acquire with the potential to purchase higher value items for the store. Secondly, young professionals, who had trouble managing their work life were not that costly to acquire in the market and they were considered the least loyal customers for the company. Thirdly, the off-price customers were frequent users of the internet and they compared the price of the product offered by them and others available in the market, which allowedthese users to establish their purchasing patterns using the comparative analysis. It was assessedthat these users’ buying patterns were motivated by any discount offers given by various sites available online. Lastly, the family customers, who were busy with their families spent the least amount of time on the site and were considered least profitable for the company, attributed to their higher return rates.

However, it was determined that the management of the company faced a major challenge in developing effective and efficient pricing policies, which allowed the managementto target the customers present in different consumer segments developed by the senior management of the company.....................

This is just a sample partical work. Please place the order on the website to get your own originally done case solution .

Related Case Solutions & Analyses:

Hire us for Originally Written Case Solution/ Analysis

Like us and get updates:.

Harvard Case Solutions

Search Case Solutions

• Accounting Case Solutions
• Auditing Case Studies
• Business Case Studies
• Economics Case Solutions
• Finance Case Studies Analysis
• Harvard Case Study Analysis Solutions
• Human Resource Cases
• Ivey Case Solutions
• Management Case Studies
• Marketing HBS Case Solutions
• Operations Management Case Studies
• Supply Chain Management Cases
• Taxation Case Studies

More From Harvard Case Study Analysis Solutions

• Wal-Mart in China (2012)
• Crocs Inc.,
• RESEARCH PROPOSAL
• Dollarama Inc.
• Florida International University

Contact us:

Check Order Status

How Does it Work?

Why TheCaseSolutions.com?