Describe the strategic
Zappos three C’s. 0Zappos has three main core strategic plans for making itself successful in business, Company Culture, Customer Service and Clothing. All these three core objectives of the company make Zappos one the most desirable and copied business structures in the world today. These three C’s have changed the way we view and feel how a company should be administered todays world.
Although Zappos has a unique way of operating itself, it has taken some basic core values and strategic ideas from some other successful company’s such as Starbucks, Amazon and Nordstrom, but most importantly a big ercentage of way things are done are voted in by company employees. This is what makes unique because it employees feel like they are heard and considered. The first C, Company Culture, is most import C for the interior of the company’s structure.
This C deals with how everyone in the company relates to each other and how employees interact with customers. The entire culture is basses on ten important core values: Deliver wow through service, embrace and drive change, create fun and a little weirdness, be adventurous, creative and openminded, pursue growth and learning, uild open and honest relationships with communication, build positive and team and family spirit, do more with less, be passionate and determined, and be humble (http://about. zappos. com/our-unique-culture/ zappos-core-values).
This system of core values encourages employees to become friends inside and out of the office and is thought that when people feel like they are working with friends they become more productive and efficient at work. It was once said by Hsieh, “Zappos is a lifestyle”. Zappos lifestyle over the years has gained interest by many other companies, media nd schools, and in 2009 Zappos began to have daily guided tours in there Las Vegas campus. Zappos also has unique way of testing applicants. Zappos has really thought outside the box to see if a particular- applicant would make a good fit in the company’s culture.
The initial application included such things as crossword puzzles and cartoon characters posing off beat questions. In addition applicants underwent two interviews, one to see the applicants basic skills test and was administered by the human resource department. The second interview was based on several behavioral based questions. Over all if the managers did not feel the applicant would fit the company culture they simply were not hired. Once an applicant was hired he went through weeks of paid beginners training, always focusing on company culture no matter the position the new employee was taking.
The second C is Customer Service. Customer service is key in Zappos. Zappos wants employees to treat there customers right so they keep coming back time after time. Customer loyalty is believed to be tied in with a companies growth so Zappos puts emphases on having returning customers. About 75 percent of Zappos’ orders come from returning customers0( Frances page 6). Zappos has there bulk of sales online in which customer service translate into free fast shipping, on both ends, a wide selection of more than 1,200 brands; the availability of special sizes; and a highly intuitive, customer friendly interface (Frances page 6).
Zappos offers a 24 hour customer service telephone service. On put no matter what, for example, if a customer need to find a product and Zappos did not offer it, employees would use the internet to help the customer find there way. All calls were handled by CLT members, which were problem solvers. CLT member were valuated simply by there average call handle time or cost per contact but through customer feedback (Frances page 7). Customer testimonials on blogs and videos were thought by Zappos as better way to gage a CLTs members performance.
Zappos uses a state of the art sorting facility separate from there corporate offices to handle all the incoming and outgoing merchandise. These warehouses are extremely organized and efficient. They use an advanced system of tagging (LPN) on all the products that come through warehouses to keep track of products. This system better helps to get the merchandise the customer faster. At the same it Zappos can keep the customers updated with movements of the merchandise being ship to them.
Zappos is always committed to look for new ways to improve there systems of efficiency but do not pay workers for being more efficient but more flexible (Frances page 11). Zappos way of thinking is that employees are efficient and work well because of the company culture and do not need money to be enticed to wok better. It is Zappos’ belief that “workers work hard because e create an environment where they want to doo well” (Frances page 11). In all Zappos finds more efficient to make sure an employee s comfortable than to simply pay him for efficiently.