Professional Documents
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Zapposcasestudy PDF
Zapposcasestudy PDF
MAIN ISSUE
PROBLEM STATEMENT
ANALYSIS
RECOMMENDATION
CASE SUMMARY
YEAR Milestones
1999 - Found by Nick Swinmurn
- A variation of the Spanish word Zapotas which means
shoes.
2000 - Zappos records $1.6 million in gross sales (exhibit 6)
- Zappos had 150 brands and 400.000 pairs of shoes
$1,000
$800
Gross Sales $M's
$600
$400
$200
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008
Gross Sales 1.6 8.6 32 70 184 370 597 841 1014
Owning the 3 Cs:
Clothing, Customer Service, Culture
Culture
Customer Service
Clothing
COMPANY CULTURE
- Differentiator that gave the company competitive advantage
- 2005 Zappos core values
- 2008 created culture book
- Started a pipeline :
- 225 hours of core training
- 160 hours initial/new hire training
- Additional courses: effective communication, coaching,
overcoming conflict & managing stress
- Additonal 39 hours: Inspiring Great Teams, Leadership
Zappos Style & Cultivating Culture
COMPANY CULTURE
Zappos Core Value
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
Customer Service
Believe rapid growth was due to customers loyalty
CLT team receives an average of 5,100 call per 24 hours
Goal is to wow customers & establish personal connection
Call times is not measured
Call center turnover in 2009 was only 7% whereas industry
average was 150%
Do not implement a pay-per-performance or reward system
Fulfillment Center outside Louisville, kentucky, consist 3 storage
area :
Static Racks freestanding shelving units
Carousels ferris wheel type shelving units
Kiva Automated storage & retrieval system using inventory
pods
Customer Service
Customer Service
What customers first see
24/7 customer service representative
Free shipping
Free return shipping
365-day return policy
Customer Service:
What customers experience
Fast, accurate fulfillment
Most customers are surprise-upgraded to overnight
shipping
Create WOW
Friendly, helpful above and beyond customer service
Refer customers to competitors web sites
Clothing
2006 pursued additional lines of bussines
U.S clothing market was four times larger than footwear
market
Within 1 year Zappos had 300 different apparel brands
2007 clothing reached 5% of Zappos sales
2008 Zappos sold $31 million in apparel
MAIN ISSUE
Main Issue