Preview

Zappo's Holocracy

Powerful Essays
Open Document
Open Document
6731 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Zappo's Holocracy
Zappos to ZAPP Away the Fat to Become Leaner and Meaner
Introduction
Zappos.com, Inc. (Zappos) is generally known for selling shoes and accessories; however it has now grown into much more than that. Established in 1999 and acquired by Amazon in 2009, Zappos has grown to become the world’s largest online shoe store. This company is not only known for its wide variety of shoes and accessories, but also for its unparalleled return policy. Zappos actually encourages its customers to buy shoes in multiple sizes and just send back the ones that don’t fit. This company prides itself on being a service industry, first and foremost, rather than just a mere retailer. Furthermore, this particular business can be described as timeless, because ‘shoe purchasing’ will essentially always be in demand. Zappos focuses on the customer experience, not just creating a better product. Zappos also has a unique culture, where staff members can be seen in comfortable clothes and tennis shoes, possibly mid-parade around the office premises, but rarely will there be someone in formal wear. Even so, Zappos aspires to always deliver superior customer service, which begins with employees, and the company’s CEO, Tony Hsieh, has always been extremely enthusiastic and passionate about this concept, and has worked tirelessly to bring this dream to fruition (Zappos Insights, 2014).
In addition, Zappos has been rated one of the top companies to work for in America, because of its exemplary customer service policies and the company’s dedication to its employees (McDonald, 2011). Zappos has a unique selling platform that has taken online retail by storm, and has gone above and beyond the call of duty with respect to its management approaches. Toward the end of 2013, the company announced an effort to rise to the next level, with its intentions to overhaul its previous management structure. Zappos will now practice something called Holacracy in an effort to make employees more



References: Anaza, N.A. (2014). Personality antecedents of customer citizenship behaviors in online shopping situations. Psychology & Marketing 31(4): 251-263. Chafkin, M. (2014, February 7). The Zappos way of managing. Retrieved from http://www.inc.com/magazine/20090501/the-zappos-way-of-managing.html. Davis, A., Kopelman, R., & Prottas, D Fortune Magazine (2012, February 12). 100 best companies to work for. Retrieved from http://money.cnn.com/magazines/fortune/best-companies/2012/full_list/ Gardiner G.S., & Pohlman, R.A Groth, A. (2013, December 30). Zappos is going holacratic: No job titles, no managers, no hierarchy. Quartz. Retrieved January 30, 2014, from http://qz.com/161210/zappos-is-going-holacratic-no-job-titles-no-managers-no-hierarchy/ Hoovers Hsieh, T. (2009, July 22). CEO letter. Retrieved from Zappos: http://blogs.zappos.com/ceoletter Jones, G Kopelman, R. E., et al. (2012). "Interpreting the success of Zappos.com, Four Seasons, and Nordstrom: Customer centricity is but one-third of the job." Global Business and Organizational Excellence 31(6): 63-78. Kreamer, Z. (2013, February 23). The future of retail. PSFK. Retrieved from http://www.psfk.com/2013/02/zappos-social-shopping-site.html#!uEL3G Likert, R Likert, R. (1967). The Human Organization. New York: McGraw-Hill. McDonald, S McNeaI, M. (2013). A case for culture. Marketing Insights, 25(3), 44-45. Mindtools (2014). Theory x and theory y understanding team member motivation. Retrieved from http://www.mindtools.com/pages/article/newLDR_74.htm O 'Leary, L Pei, Z., et al. (2014). E-tailer׳s return policy, consumer׳s perception of return policy fairness and purchase intention. Journal of Retailing and Consumer Services 21(3), 249-257. Preziosi, R.C. (1997). The impact of value-based leadership on organizational productivity, Productivity and Quality Management Frontiers, Ed. C. G. Thor, J. A. Edosomwan, R. Poupart, and D. J. Sumanth, Vol 6, 12-18. Pohlman, R.A. (1997). Value Driven Management, Faculty Working Paper 97-01, School of Business and Entrepreneurship, Nova Southeastern University. Richards, D. (2010, February 7). At Zappos, culture pays. Retrieved from http://www.strategy-business.com/article/10311?pg=0. Richards, D. (2010, August 24). Organizations and people. Strategy and Business. Retrieved from http://www.strategy-business.com/article/10311?pg=all Robertson, B Rose, S. (2008, February, 14). If the shoe fits; A look at Zappos and the technology they use. Retrieved from http://www.fastcompany.com/957965/if-shoe-fits-look-zapposcom-and-technology-they-use Schoultz, M Wasserman, T. (2013). Zappos Facebook activity over 2 months drives 85,000 website visits. Retrieved March 9, 2014, from http://mashable.com/2013/02/06/zappos-facebook-results/ Weinstein, A Zappos Insights (2014, March 11). Zappos Insights. Retrieved from http://www.zapposinsights.com/

You May Also Find These Documents Helpful

  • Good Essays

    Nordstrom Vs. Technology

    • 329 Words
    • 2 Pages

    The retail industry is rapidly changing due to technology advancements and consumer demand. Consumers have shifted to ecommerce spending rather than with brick and mortar stores. Nordstrom, a leader in the retail industry, is facing growth issues in retaining consumers under this transition. Despite this major shift in ecommerce spending, Nordstrom has been able to tap into the market by offering a seamless online shopping experience, similar to the experience customers receive in store. Bloomingdales and Macy’s, Nordstrom competitors, are also facing these issues but are less successful in adaptation. The overall trend will force expansion in their online presence, to mitigate the risk of market share loss. Amazon,…

    • 329 Words
    • 2 Pages
    Good Essays
  • Good Essays

    One way Nordstrom is working to become more customer-driven is by building upon their multi-channel system. This multi-channel network, known as Nordstrom Direct, is made up of their online site, and catalog. Over the past three years, Nordstrom has made great strides to ensure that they are fulfilling the needs and desires of all customers. “We believe online and ecommerce represent our next big opportunities. Within two years more customers will access the Internet via their phone than their computers. We’re responding”[2] All of the effort put into the improvement of the system is showing clear results in the financials. The economic recession was felt all over the U.S. including Nordstrom, however they were able to experience an 8.4% increase in Nordstrom Direct sales during the 2008 fiscal year.[3]…

    • 710 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Case Study

    • 951 Words
    • 4 Pages

    References: Borisova, L. (2009). Values as a Managerial Tool. Management of Organizations: Systematic Research, (52), 7-19. Retrieved from Business Source Complete database.…

    • 951 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Nordstrom Essay

    • 1313 Words
    • 6 Pages

    Identify the advantages and disadvantages of using “customer centricity” to create customer loyalty among existing and new Nordstrom customers.…

    • 1313 Words
    • 6 Pages
    Good Essays
  • Better Essays

    In terms of organizational structure, Zappos would be considered a flat decentralized organization. When an issue surfaces, the employee closest the problem is empowered to make a decision (Eckel, 2011). This creates flexibility for the company so that they can respond to any issues that arise in a timely manner. The integration of the differentiated units within the company is so streamlined that teams can be mixed and reformed occasionally without a hitch. CEO Tony Hsieh wrote a book about delivering happiness and incorporated its practices into the company model. To create customer loyalty, Hsieh established a work environment that emphasizes team building and family as a priority. The lines of authority are far from blurred here. Senior managers’ cubicles blend in with the workforce and are referred to as coaches who help solve problems instead of barking out orders.…

    • 1138 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Studysetquestions

    • 821 Words
    • 4 Pages

    The online shoe retailer should devote more attention to global influences, other Web-based competitors, delivery arrangements over longer distances, the quality and ease of use of its Web site, and pricing comparisons with other Web-based shoe retailers. The online shoe retailer may also need to explore the possibility of free return shipping due to issues with fit and color accuracy.…

    • 821 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Nordstorm

    • 686 Words
    • 3 Pages

    Nordstrom had been facing increasing challenges sustaining their competitive advantage over significant competitors. Historically, Nordstrom’s customer service driven approach accounted for earnings nearly double that of competitors. On the other hand, recently competing specialty stores along with the expanding online retailing sector have threatened Nordstrom’s sustained market advantage. Nordstrom originally began to develop additional retail outlets to counter emerging competitors which resulted in declining market value and share price. These results prompted Nordstrom to return to their core competencies of superior customer service and product quality. Nordstrom re-committed their business approach to ensure that they were second to none in terms of the service provided for customers and the quality of their product offerings. Nordstrom possesses a distinct and reputable image that effectively differentiates them from their competitors. Nordstrom is known throughout the retail sector as the distant leader in customer service. Nordstrom regards their customers as extended family and treats them as such. In addition, Nordstrom utilizes devoted sales associates for serving customers in an array of fashions. They possess the most liberal return policy that is highly regarded among customers. Also, sales associates will call in orders for merchandize not on hand free of charge. Recently, Nordstrom has improved their largest strength of customer service by implementing personal shopping sales associates who research…

    • 686 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Offering free shipping, free return shipping and 365 day return policy is another example that shows how Zappos is passionate about its customers’ happiness. As a part of excellent customer experience, Zappos has 100% satisfaction guaranteed return policy and tries to make return process as convenient as possible. And also, Zappos encourages its customers to order several items, check them out, and return if they don’t want. It looks like it was not a coincidence for Zappos to reach $1 billion in annual sales by 2008, two years earlier than expected.…

    • 593 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Zappos Case

    • 2663 Words
    • 8 Pages

    Since it’s inception, Zappos has grown from a shoe-only retailer to grossing over $1 billion in sales from a variety of clothing items (Zeithaml, 2013, Exhibit 6). Initially called ShoeSite.com in 1999, Swinmurn later changed the name to Zappos, a play on the Spanish word for shoe, zapatos. The company initially purchased its inventory from independent retailers, but soon after, created lasting relationships with footwear manufacturers. This allowed Zappos to refrain from carrying inventory by having the manufactures ship directly to the customers (Zeithaml, 2013). By the end of 1999, Zappos instituted a free shipping policy that fostered immediate growth, which fueled the company towards a very prosperous decade.…

    • 2663 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Macy's Company Analysis

    • 1614 Words
    • 7 Pages

    In 2008, Macy’s launched a new campaign called My Macy’s. With the implementation of this campaign, the organizational structure shifted from an operating division model to a more centralized organization nationwide. The new structure has been successful in helping Macy’s to streamline operations and management into more efficient processes,…

    • 1614 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Retail doesn’t seem to be the only thing that Zappos has gotten right, however. Beyond growing from a small, upstart company to a 1 billion dollar “behemoth”, Zappos prides itself on the culture it has created and invests in for its employees. Unlike some companies that guard their employee credos and internal culture (Apple comes to mind), Zappos promotes theirs for any would-be customer to see. Multiple links on their website lead to testimonials, blogs and YouTube videos providing a behind the scenes look at exactly what it’s like to work for this Once Upon a Time shoe company. Current CEO Tony Hsieh said in 2009 while celebrating the company's 10th anniversary that “Our No. 1 priority is the company culture. Our whole belief is that if we get the culture right, then everything else, including the customer service, will fall into place,” [ (Twitchell, 2009) ] and indeed that thought processes seems embedded in the company's Core Values which are posted on its website under a link labeled “Our Unique Culture”.…

    • 1128 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Zappos’ customer focused environment stemmed from owner /chief executive Tony Hsieh. Hsieh’s goal was to offer impeccable service thus producing customer satisfaction and repeat business with a distinction from the rest. By prioritizing Zappos’ company culture, Hsieh achieved his goal.…

    • 1994 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Assignment 2; Integrating Culture and Diversity in Decision Making: The CEO and Organizational Culture Profile…

    • 1099 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Zappos Case Study

    • 2688 Words
    • 11 Pages

    To understand why Zappos would be a motivating place to work, one must dig deeper into the basics of the company. What are their philosophies? What are their goals? What is their mission? Zappos.com is a fairly new company created in 1999 by a consumer who wasn’t able to find his favorite pair of shoes at the mall. Adding this online shoe company to the other online retailers met the need for online shopping at a time where malls were a thing of the past. Interestingly enough, “this country hasn’t opened up a new one [mall] since 2006, so it’s no surprise that nearly a third of Internet users turn to the web for most of their shopping.” (Donovan, 2013) This new contender to the marketplace soon took off and in 2009 was acquired by Amazon. From start-up company to billion-dollar organization, Zappos has definitely proved that they have what it takes to succeed aligning their mission around, “provid[ing] the best customer service possible.” (Zappos IP, Inc., 2013) In addition, “regardless of our structure, our goal is to position Zappos as the online service leader. If we can get customers to associate the Zappos brand with the absolute best service, then we can expand into other product categories beyond shoes.” (Zappos IP, Inc., 2013)…

    • 2688 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Zappos Case Study

    • 1036 Words
    • 3 Pages

    Zappos’ culture is one that we all dream about, one that promotes friendship, equality, and happiness. Bauer and Erdogan define culture as an organization’s personality, which refers to a system of shared assumptions, values, and beliefs that show employees what is appropriate and inappropriate behavior. Zappos’ culture was considered an outlier to say the least, one that was driven off of “inspiration rather than motivation” according to CEO Tony Hseih. It was the goal of the organization to empower their employees and make them feel apart of something “bigger than themselves” an organization that went against the grain of “normal” corporate culture. Zappos’ leadership viewed the company culture as the key differentiator between their peers. It was this school of thought that would give them a competitive advantage over their peers. It was the organization’s goal to help build a “better world and happier place” and in order to do so they established their “10 Core Values.” Now normally, senior leadership would normally create these values themselves however, Zappos' acted differently. They asked their employees to decide on the core values. These “organic controls” helped ensure Zappos achieve their future success. Bauer and Erdogan believe that organic controls help shape employee behavior through shared values, and developing a common understanding of strategy. By letting the “people” have ownership over their own destiny led to a tremendous amount of employee commitment. Zappos’ developed these extraordinary levels of commitment by focusing on what our text describes as “common design elements.” One of the common design elements found within the Zappos culture was their clarity of organizational goals. Their focus on employee morale and building a better place helped build their foundation on future success. They focused on teamwork and their ability to coexist with their peers both inside and outside of work help build comraderie amongst peers. Zappos…

    • 1036 Words
    • 3 Pages
    Powerful Essays

Related Topics