Zappos' Values-Based Culture |
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Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source. |
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"I don’t think the Zappos culture can or should be cloned, but I do think the idea of being transparent and running a business based on core values and a meaningful vision that’s not just about money or profits can work for any organization. It doesn't really matter what the core values are, as long as the entire organization commits to those core values. The most important thing in any large organization is alignment (around values and vision)." 1 - Tony Hsieh, CEO, Zappos, in 2009 "The Zappos call center is unlike any other I’ve seen and I’ve been in thousands. From the outside, it appears disorganized, but it is not. What holds it together is the corporate values they all have. They understand why they are in business and what it takes to keep a customer. It’s about being authentic and empathetic. As Tony Hsieh says, culture drives service. It starts with the culture, not service policies." 2 - Mary Murcott, head of Performance Transformation3 in 2010. Delighting Customers and Employees
Zappos was founded in 1999 when there were very few online shoe retailers. The company differentiated itself from other e-retailers by providing customer friendly services like free shipping both ways and a 365-day returns policy. The service representatives at Zappos went out of their way to help the customers, and strove to delight them. The highly motivated staff was able to provide high levels of customer service due to the prevailing culture in the company, where employees were provided with a working environment which helped them realize their potential. According to Tony Hsieh (Hsieh),7 CEO of Zappos, "The key to superb customer service lies in the brilliant company culture of Zappos... when the company treats the employees superbly, the employees don’t want to let the company down."8 Delighting Customers and Employees Contd... - Next Pages >>
1] Conversations on Culture, An interview with Zappos CEO Tony Hsieh, DMI News & Views, September 2009. |
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