Zappos CEO Tony Hsieh
Zappos is a shoe website that soon expanded into something bigger than what it was actually intended to be, now selling apparel, electronics, house ware, and kitchenware. In the YouTube videos I watched, Zappos CEO Tony Hsieh talks about the strategy of the company, the culture of the company, and changing the strategy to meet the external demands.
The original strategy of Zappos was the company culture. According to Tony Hsieh (on 20/20), “We think it’s important for employees to have fun and that drives employee engagement that comes with strong cultures that tend to out-perform the ones that don’t have strong cultures.” At Zappos, employees enjoy free lunch in the cafeteria, no charge vending machines, a company library, a nap room, free health care, and supply a life coach to help employees reach their goals. This is all part of the company’s culture. Although the company’s strategy has changed, the culture remains the same.
With the original strategy of Zappos being its company culture, Hsieh decided to change the strategy to meet the externals demands. Zappos’ new strategy was an environment serving organization that offers great customer service. Rather than spend money on marketing, the company would take the money and put it back into the customer experience and let repeat customers drive the business and generate word of mouth. Zappos wants to interact with their customers. Hsieh states on “Zappos CEO speaks at Net Promoter Conference” that on every Zappos page you are directed to, there is a 1-800 number for customers to call if they have any questions or concerns. Part of Zappos’ customer service includes free shipping both ways and 365 day return policy. Zappos offers free shipping both ways because the company encourages you to order a variety of shoes, choose the shoe you want, and to ship the shoes you don’t want back for free. With these changes, Hsieh...