Question 1

Zappos has 10 core values that it prides itself on.

Deliver wow through service.

Embrace and drive change.

Create fun and a little weirdness.

Be adventurous, creative and openminded.

Pursue growth and learning.

Build open and honest relationships with open communication.

Build positive team and family spirit.

Do more with less.

Be passionate and determined.

With these core values your employees become your ambassadors they will love what they

do for work and will share the positive way they are treated which helps spread a positive

word about you brand gaining more loyal customers.

Question 2

Question 3

The company’s “WOW” philosophy of customer experience and the wide selection are
supplemented by 365 days free return and 24/7 customer service.
Zappos changes its model from a traditional organizational structure to Holacracy which is a
self-governing operating system in which there are no job titles and no managers. There
would be no management and no authority.
The most significant purpose of this change is that Zippos want their employees to act
more like entrepreneurs instead of doing what their managers tells them. This will increase
the innovation and productivity of Zappos as the company expands. Also, after it
succeeded in selling shoes, they decided to expand and sell various types of products.

Customization effects Zappos’s business by building long-term and good relationships with customers
since it gives them the choice and control to custom their product the way they want, this customization
option creates a competitive advantage for Zappos and increases their sales and eventually revenues.
Customization would also attract new customers since it’s a fun and effortless process.
Zappos announced that it had $635 million in net sales and $1 billion in gross sales in 2008 as a result
from the customization option

In conclusion, Zappos approved that it’s strategy, culture and business model are significant and it’s
succeeded to achieve its objectives and strategy through various critical success factors. The success
story of Zappos is very inspiring.