Zappos Case Analysis - Ethical Climate, Core Values, Challenges and Solutions

Running Head: ZAPPOS CASE ANALYSIS 1
Zappos Case Analysis
Names
Institution

ZAPPOS CASE ANALYSIS 2
Zappos Case Analysis
Introduction
According to Yu-chen (2012), Zappos is one of the best online clothing and shoe retailer.
The study review Zappos as one of the retailer shop which have a strong ethical climate as well
as striving on their code of conduct and ethics. The retail also embraces its strong core value
which keep it thriving to meet its customer expectations. Its management has been focusing to
ensuring it remains competitive through offering high quality services. Over the years, it has been
embracing and driving Change to operate based on the changing customer needs. Some of the
primary aims of Zappos is to create Fun, Adventure, and creativity, open minded, and also pursue
growth and learning.
The company focuses on building openness and honesty through their channel of
communication, and building team work (Tanu, 2017). They also aim at achieving more with
less as well as spirit of being passionate and humble to the stakeholders and its customers. This
core values have helped the retail in providing the customers with customer service to enhance
their level of satisfaction. It also aims at decreasing unethical workstation behavior which may
affects day to day operations.
Background
According to Lili (2016), Zappo was initiated in the early 1999 by Nick Swinmurn. The
idea to come up with the company by Nick was reached after his attempts to find a pair of his
favorite footwear at his local mall. Later, he approached his two friends Tony Hsieh and Alfred
Lin who supported his idea of coming up with the online retail shop which would primary deal
with high quality shoes. The company was launched in 1999 by Hsier and Lien by the name

ZAPPOS CASE ANALYSIS 3
Shoe Sites which later changed to Zappos (Oss & Hek, 2011). The primary aim of changing the
name was to make the company to diversify in other products other than shoes.
Late on Venture Frog invested additional capital to Zappo which made it to be shifted
into their office space thus Tony Hsieh becoming board as co-CEO with Nick Swinmurn. The
Company was in a position to realize $1.6 million in revenue in 2000 which marked an increase
as compared to the previous year (Danny, 2016). With proper management and continuous
market research, the company continued to report positive performance, and in 2004 it was in a
position to receive its first round of venture capital. Later, and due to best performance and
growth it moved its headquarters from San Francisco to Henderson, Nevada.
Regardless of the challenges which the company has been facing over the last years, such
as 2012 hacking incident, the management has been focusing on better performance through
using unique operational strategies. The retail also expanded its line of production to dealing
with various products such as handbags, eyewear, clothing, watches, and kids’ merchandise. This
decision made it to expand its market share and to become an internationally competitive
company.
Over the years, the retail has been contributing largely in promoting social interaction and
also their interaction between the stakeholders and employees through engaging in various
charity events. It also encourages team building as one of the ways of promoting relationships
among its staff members. Additionally, its management trust that its customers are of essence
because they are the reason why the company has been in operation and therefore focuses on
ensuring they are fully satisfied with its products. This has to attain reputation and customer
loyalty which in turn has made it to realize substantial revenues. It focus on doing what is right
has also made it to be termed as one of the most ethical companies.