Case Study Analysis of Zappos Company
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Case Study Analysis of Zappos Company
Zappos’s Organizational Behavior
Zappos Company has had the most incredible culture that contributed to its success for the past two years since its inception in 1999. Nick Swinmurn, the founder of Zappos Company, argued that its success relies on ten core principles to ensure its customers are satisfied (Hsieh, 2010). Moreover, Zappos Company has managed to attract its customer through a distinctive belief that proper cultural behavior plays a core duty in facilitating positive employee relationships. Organizational behavior at Zappos has encouraged their survival in the competitive online retailing business. The organization has its culture that focuses on the customer’s happiness; hence, growing from $1.6 million to over $1.6 billion in ten years (Hsieh, 2010). Zappos has branded itself as the provider of happiness to its customers, whereby vendors and employees strive to sustain the culture. The corporate culture focuses on eminent customer happiness through successful models guiding the relationship. This case study analysis aims to provide specific organizational behavior that Zappos has relied on to globally ensure a competitive advantage over other online retailers.
The organizational behavior exhibits cultural models using ten core principles to guide its employees; and, they include an adventurous, passionate, humble, and honest relationship with effective communication. Zappos Company has been clear on the culture that has seen many changes practically through innovative entrepreneurship. According to Hsieh (2010), the organization has been particular about its customer satisfaction by delivering a “WOW” experience. Zappos aims to provide reliable commerce and customer services that align with company and community culture. The organization has continued to transform and scale up its services to remain top of its competitors with varied styles and clothing. It has been exclusively dependent on protecting and developing its culture of serving the communities through well-informed customer relationships.
Lastly, Zappos Company has succeeded in terms of revenue owing to the exceptional customer services. The organizational behavior at Zappos dictates that its employees are well remunerated with a sustainable free return policy. The performance at Zappos is supported by the principles underpinning the company’s core values. Employees are reminded to remain vigilant over the proper communication channels that facilitate positive corporate culture (Hsieh, 2010). Zappos focuses on creating an environment that encourages both motivation and inclusivity of all employees. According to Tony Hsieh, the company’s CEO, the secret to the performance is based on building strong customer loyalty that is cognizant of caring for customers.
Zappos’s Organizational Change
The organizational changes already experienced at Zappos include shifting the management from standard structures hierarchy to a holacracy, a decentralized system relying on shared decision-making. The CEO of Zappos has been keen on adding a doubled down the structure in management and promotes self-management of every sector of the company (Hsieh, 2010). However, the company has been slowly moving from holacracy to a market-based system, where teams are operating on independent management structures. The changes have contributed to the development of new products and services promoted through incentives offered to groups. Moreover, individual teams are encouraged to source out for their operations funds and focus on selling skills and services. Through each unit’s functional styles, Zappos has been trailing on a successful path of revenue development.
Furthermore, Hsieh (2010) adds that Zappos’ settings of marketplace operations are contributing to the creation of budget funds used in running day-to-day operations. The company has strived to develop an internal system with a close resemblance to real-world markets. Therefore, teams are operating independently, thus decrease challenges in decision-making to facilitate the company’s growth.
Leadership at Zappos
The authoritative style of organizational leadership helps share visionary objectives and goals that have supported Zappos’ success (Hsieh, 2010). Employees feel the kind of freedom required to experiment with new methods for the company’s growth. Hsieh’s style of leadership is structured to support both employees and customers. The founder believes that effective communication with all employees should remain a core principle that supports organizational progress. Moreover, the model of leadership attracts several workers to express their opinions and intended actions. The honest communication between leaders and employees have contributed to best practices; thus, facilitating democratic leadership. A democratic leadership style is useful in decision-making and finding solutions responsible for employees and customer satisfaction. According to Hsieh (2010), the decision-making process is more comfortable with a shared opinion that ensures that every employee is included. Zappos Company is built on trust that the coaching of employees develops competent and goal-oriented staff. The type of leadership provides employees to make better knowledge and skills that contribute to Zappos’s success. Employees are embittered through coaching leadership; hence, their career development is on par with organizational goals and objectives.
Zappos’s Team Dynamics and Processes
At Zappos Company, a team of employees has integrated systems where communication and information flow have been supreme in ensuring their success. Hsieh (2010) posits that each team’s dynamics rely on appreciation for every member in contribution to the provision of quality customers’ services. On top of every team operation, the organization focuses on amicable and sustainable solutions that promote the culture of happiness. Moreover, every team member is allowed to add to the organization’s success through an open relationship. The processes are controlled by leaders who often lend an ear to team members to find everyday purposes and goals.
References
Hsieh Tony. (, 2010). How I Did It: Zappos’s CEO on Going to Extreme for Customers. Harvard Business Review. Retrieved from: https://hbr.org/2010/07/how-i-did-it-zapposs-ceo-on-going-to-extremes-for-customers