University of New Mexico http://danielsethics.mgt.unm.edu Zappos: Delivering Happiness to
Can a company focused on happiness be successful? Zappos, an online retailer, is proving that it can.
The company’s revenue grew from $1.6 million in 2000 to $1.64 billion in 2010. Tony Hsieh,
Zappos’ CEO says, “It’s a brand about happiness, whether to customers or employees or even vendors.” Zappos’ zany corporate culture and focus on customer satisfaction has made it both successful and a model for other companies.
This case examines how Zappos’ focus on stakeholder happiness has contributed to its success.
First, we examine the history of Zappos, its core values, …show more content…
Zappos has ten core values that guide every activity at the company and form the heart of the company’s business model and culture.
Deliver WOW through service.
Embrace and drive change.
Create fun and a little weirdness.
Be adventurous, creative and open‐minded.
Pursue 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.
Zappos’ core values differ from those of other companies in a couple of ways. In addition to being untraditional, the core values create a framework for the company’s actions. This is exemplified in the company’s commitment to their customers’ and employees’ well‐being and satisfaction.
ZAPPOS’ CUSTOMER‐FOCUSED BUSINESS MODEL
The Zappos business model is built around developing long‐term customer relationships. Zappos does not compete on price because it believes that customers will want to buy from the store with the best service and selection. The company strives to create a unique and addicting shopping experience, offering a wide selection of shoes, apparel, accessories, and home products, free shipping to the customer, free shipping and full refunds on returns, and great customer service.