Nita Pradhan Batch 27

Zippos, is founded by Nick Swinmurn in 1999, which was started as an online shoe retailer but
quickly expanded its offerings to become a leading e-commerce platform. The company’s
success was not only attributed to its diverse product range but also its commitment to
exceptional customer service and fostering a positive workplace culture. Zippo’s customer
service was legendary because they offered free shipping on all orders, a generous 365- days
return policy, and round-the-clock customer support. Their customer service representatives were
empowered to go above and beyond to delight customers, which earned them a loyal customer
base and rave reviews in the industry.

The founder of Zappos, Nick Swinmurn, attributes the company's growth to their investments in
three key areas: customer service, company culture, and employee training and development.
These investments have helped Zappos create a positive environment where everyone feels
valued, inspired, and connected, which has contributed to the company's success. The move to
Las Vegas allowed Zappos to make progress in each of these areas, ultimately leading to the
company's growth and the development of a strong workplace culture that has made Zappos a
cultural icon in the retail industry (Tony, July- August, 2004 ). Zippo’s Lenient return policy,
which allows customers to return items for free and without a time limit, it seen as a competitive
advantage that creates happy customers. This investment in customer satisfaction is believed to
be the best marketing channel, as happy customer is more likely to recommend the brand.
Despite the high cost of returns, which amounted to $379 million in 2008, Zappos views it as a
necessary expense. This approach has contributed to Zappos’s success, with the company
reaching over $1.1 billion in gross revenue by 2009 and having an annual revenue of over $2
billion today, (W, Z. ..2015 ).

Analysis of the Case

Zappos, an online shoe retailer, has been successful by focusing on delivering happiness to both
its customers and employees. The company's core values, such as creating relationships,
embracing change, and delivering "Wow" through service, have been instrumental in creating a
unique business model that emphasizes customer satisfaction. Zappos has invested in employee
training and development, which has led to a positive company culture that fosters creativity,
innovation, and productivity. The company's lenient return policy, which allows customers to

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return items for free and without a time limit, is seen as a competitive advantage that creates
happy customers, who in turn act as the best marketing channel. Despite the high cost of returns,
Zappos views it as an investment in marketing. This approach has contributed to the company's
growth, with revenues in excess of $1 billion annually and the acquisition by Amazon in 2009.
Zappos continues to prioritize customer service, company culture, and employee training and
development, which has helped the company maintain its success and expand its product
offerings beyond shoes to clothing, accessories, housewares, beauty, and more. The case study
also discussed the challenges faced by Zappos as it expanded and evolved, and how the company
addressed these challenges while preserving its unique culture.

Core Values of Zappos

Zappos core values are unique and untradational, focusing on delivering exceptional service,
embracing change, and fostering a fun and creative environment. These values create a
framework for the company’s actions, priorizing customer and employee satisfaction over profit.
(accessed April 2, 2013). The company’s commitment to these values is reflected in its customer
service strategy, which emphasizes personalized experiences, exceeding customer expecations,
and maintaning a customer-centric culture. Zappos core values have contributed to its success by
aligning the company’s culture with its employees and customers, leading to high levels to high
of engagement, loyalty, and profitability. Some core values in points are mention below:-

 Deliver WOW though service

 Create fun and a little weirdness
 Embrace and drive change
 Be adventourous, creative and open-minded
 Pursure growth and learning
 Build open and honest relationships with communication
 Build a positive team and family spirit
 Do more with less
 Be passionate and determined
 Be humble with guests and teammembers

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Above are the some core values of Zappos.

Impact of Culture on Performance

Zappos' unique organizational culture contributed to its success as an online retailer by fostering
high levels of employee engagement. Zappos' core values, such as exceptional service and
embracing change, shaped employee behavior, fostering a positive work environment and
resulting in high employee satisfaction. Zappos' culture fostered a sense of purpose and
belonging among employees, leading to higher motivation and engagement. Happy employees
were more likely to go the extra mile for customers, leading to increased customer satisfaction
and repeat business. This positive cycle of employee satisfaction translating into superior
customer service contributed significantly to Zappos' success as an online retailer.

Customer Service Excellence

 This focus on customer satisfaction build strong loyalty and trust, leading to higher
customer retention and positive word-of-mouth.
 It’s customer service strategy was centered around delevering exceptional service and
creating fun and engaging for customers

Sustanibility of Culture

 To grow and evolve, the company faced challenges in preserving its unique culture and
values.
 The company also offered leadership training courses and a "3-Day Culture Camp" to
ensure that employees remained aligned with the company's values and culture.

Conclusion

In summary, Zappos' unique organizational culture has been instrumental in its success as an
online retailer, as it has prioritized employee happiness and empowerment, which has led to
exceptional customer service and business performance. The company's commitment to

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delivering happiness has set it apart from competitors and contributed to increased customer
loyalty and satisfaction. Despite the challenges that arose as the company expanded, Zappos has
found ways to preserve its unique culture and values, ensuring the sustainability of its success.

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References

 s,” http://about.zappos.com/ourunique-culture/zappos-core-values. (April 2, 2013). ).

Zappos 25 years , 457.

 Tony, H. (July- August, 2004 ). https://hbr.org/2010/07/how-i-did-it-zapposs-ceo-on-

going-to-extremes-for-customers. Harvard buniss reviev , 04.

 W, Z. .. (2015 ). https://d3.harvard.edu/platform-rctom/submission/zappos-delivering-
happiness-powered-by-service/. technology and operations management , 07.

 (Tony, https://www.blinkist.com/en/books/delivering-happiness-en)

 Sunny, N. (May 13, 2020). https://medium.com/@sunnymingnie/book-summary-

delivering-happiness-by-tony-hsieh-368ab8370ec7. Medium.

 Sara, A. J. (2010). https://www.gsb.stanford.edu/faculty-research/case-studies/zappos-

happiness-box. Stanford Business, 32.

 CaseStudy.Help. (n.d.). https://www.casestudy.help/zappos-delivering-happiness-case-

solution-13303.

 (https://www.zenflowchart.com/blog/delivering-happiness-tony-hseih-book-summary,
May 9, 2023)

 (Tony, https://www.supersummary.com/delivering-happiness/summary/, 2010)