ZAPPOS CASE

IMB5 - Group 6 - Yellow Batch

3222382 - Aakriti Jain

Stakeholder
Interests
HRM Policy HRM Long Term
1. Employees Choices Outcomes Consequences
2. Old Customers
3. Prospective Customers 1. Employees were given freedom 1. High Productivity and 1. Employee well being
to choose the kind of work Motivation 2. Retaining existing
they wanted to engage into 2. Genuine interest to serve 3. customers
customers 4. Word of mouth of the
2. Pay benefits if an employee 3. Helped retaining existing 5. company's culture
3. upskills oneself customers 6. Attracting new
Situational 7. talented workforce
Factor 4. Engagement on Twitter created
a good brand image through
1. Value of the business: to develop a organic word-of-mouth
transparent organization and
satisfy all stakeholders

2. Characteristics of employees:
Positivity, empathy, open-
mindedness, and creativity

3. Philosophy: Contented employees

Zappos massively differentiated themselves from its competition by building a culture that is
customer-centric and focuses on delivering happiness in every way imaginable. This is what has
made Zappos a trusted destination for millions of loyal online shoppers.

Zappos made sure that their employees are happy and satisfied in every way possible which in
turn helped them to retain their customers.

Also, the customer service that they provided helped them build a great relationship with their
customers and it also helped in spreading a good word about their company in the market.

Building a solid brand has also proven fruitful for Zappos. To create a devoted consumer base, the
business has engaged in social media and other marketing initiatives. It has also been effective at
using its brand to enter new product categories and markets.
ZAPPOS HR PRACTICES

1. Involving employees and new hires to co-create the culture design - engagement
2. Fully paid health and dental insurance – offer a benefits package
3. Cubicles decorated by themes – for a fun and unique environment
4. Open public tours at HQ – providing exposure company wide
5. Visitors at the HQ provided free lunch, allowed to walk unescorted to build open and honest
relationships
6. Use of Twitter to align with their Transparency Goal and to connect with employees and
customers outside the organisation
HR PRACTICES & BUSINESS STRATEGY

Company culture and employee engagement are very important to the business, and a variety of
initiatives and programmes have been put in place to support these principles. For instance, the
firm has a "pay to quit" programme where workers who are not totally dedicated to the company's
culture are given a monetary incentive of $3,000 to depart. Additionally, Zappos places a high
priority on the growth and development of its workers and encourages them to take on leadership
positions and follow their passions inside the organisation.