Zappos Faces Competitive Challenges

1. Zappos seems to be well-positioned to have a competitive advantage over other online retailers. What challenges discussed in Chapter 1 pose the biggest threat to Zappos’ ability to maintain and enhance its competitive position? How can human resource management practices help Zappos meet these challenges? Despite the high levels highlighted of the Zappos, certain challenges remain a threat towards the process of maintaining its position. The global economic and financial recession that led to downsizing of its employees in order to keep up the competition in the market is one of them. The other challenge is that of acquisition as highlighted that the company had been acquired with the Amazon. Bratton and Gold (2012) provide some advice human resources managers to prepare employees psychologically when companies suffer losses arising from a recession. This includes having meetings and discussing the uncertainties and how best to approach the challenges, especially the threat of being laid off. Zappos has tried handling this in the most amicable way, but some initial preparations were still needed to prepare the employees psychologically.

2. Do you think that employees of Zappos have high levels of engagement? Why? I believe employees at Zappos have high levels of engagement. Zappo’s employees are highly motivated and involved in the company’s activities. This has enhanced their contribution towards high performance that has led to the organization winning various awards. They are regularly expected to fill up the status reports on such things as how much time they spend on the telephone with customers. Managers later evaluate the reports in order to identify the existing gaps and training needs assessments. This promotes a high level of employee engagement. Zappos also believes in helping its employees understand what inspired the company culture and helps them in putting into practice the cultural values and needs. The company created the Zappos.com