Zappos: Leadership, Organizational Culture, and Competitive Advantage

This article discusses the leadership, organizational culture, and competitive advantage of Zappos, a renowned online shoe retailer. It explores how open communication, continual learning and improvement, and embracing change have helped Zappos thrive. The article also highlights how Zappos' organizational culture and core values have contributed to its success and competitive edge. Additionally, it examines the various sources of competitive advantage that have allowed Zappos to stay ahead of its competitors and generate high revenue. Finally, it discusses the sustainability of Zappos' competitive strategy in the online retail market and the influence of corporate culture on business success.

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Question 1.
Zappos, a renown online shoe retailer, holds various characteristics that challenge most
corporate environments in terms of leadership and management. To begin with, we have open
communication. Tony Hsieh, the CEO, understands the essentialness of transparency since it
plays a crucial role in performance (Goldstein, 2017). Open communication has helped the
company reengage the teams focus as well as revamp productivity since there are no
communication barriers between the management and employees.
Secondly, we have continual learning and improvement. As a leader, Tony Hsieh
encourages employees to improve themselves further. This has promoted innovation and growth
in Zappos. Lastly, we have embracing change. Originally, Zappos mainly dealt with shoes as a
primary source of revenue, but with time, they had to modify their brand identity by introducing
clothing so as to survive (Goldstein, 2017). By adapting to market demands, Zappos has
remained profitable and a competitive brand.
Question 2.
Zappos has built its organizational culture around its ten core values. This has placed
Zappos among the best places to work. Besides, by clearly defining the organizational culture in
the company, every employee understands the vision of the company. Employees are also able to
incorporate the organizational culture in their daily work activities hence having the right
motivation and skill set (Lessons from Zappos, 2019). Therefore, aligning organizational culture
to business objectives allows Zappos to be successful hence driving great results.

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Question 3.
Zappos is defined by its core values since the values define the company’s brand and
character. This differentiates Zappos from other competitors. In relation to the core values,
Zappos consider various aspects that make the company unique. To begin with, Zappos
considers the hiring of the right people seriously (5 Things Zappos Does Differently, 2014). This
is because the company desires all employees to mesh with the company’s culture. Secondly,
Zappos understands what the customer wants and how to ensure customers get what they want
with no exceptions. All these aspects are also driven by the vision of the company.
Question 4.
Zappos has managed to stay ahead of its competitors as well as generate high revenue
majorly due to its various key sources of competitive advantage (Weber, 2013). The sources
include; fit and return policy which incorporates product recall within 365 days, faster website
loading time, excellent customer service, corporate culture, and organizational values, free rapid
next day delivery, overnight delivering tactic, and the Zappos call center. The primary objective
of these sources is to increase customer satisfaction which in turn causes the customers to remain
loyal to the company. For example, Zappos always creates a memorable shopping experience for
its customers through its unique warehouse management and customer service.
Question 5.
Corporate culture influences various aspects of a business as well as core competencies
behind a specific culture. Business models can be easily replicated by competitors; however,
replicating organizational culture can be daunting. Zappos competitive strategy is strongly
attached to the company’s organizational culture (Pelletier, & Mujtaba, 2015). Therefore, I

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believe Zappos competitive strategy is still sustainable when it comes to the online retail market.
Besides, the culture fosters innovation, teamwork, effective communication and openness which
are proper ingredients for success and excellence. For instance, Zappos’ unique culture creates a
sense of belonging to the organization hence being able to do better than competitors.

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References
5 Things Zappos Does Differently - Predictable Profits. (2014). Retrieved from
https://predictableprofits.com/recipe-success-5-things-zappos-differently/
Goldstein, S. (2017). How Tony Hsieh Transformed Zappos With These 5 Core Values.
Retrieved from https://www.inc.com/steve-goldstein/5-ways-zappos-ceo-wins-at-
customer-focus-leadership-and-has-for-nearly-20-years.html
Lessons from Zappos: 4 Steps to Building Corporate Culture. (2019). Retrieved from
https://www.emergenetics.com/blog/building-corporate-culture-zappos-lessons/
Pelletier, R. A., & Mujtaba, B. (2015). Maximizing employee happiness and well-being: An
examination of value creation and competitive advantage at Zappos. Advances in Social
Sciences Research Journal, 2(4), 220.
Weber, L. (2013). The social enterprise: Building a digitally driven business to gain competitive
advantage. Journal of Digital & Social Media Marketing, 1(1), 6-16.