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CORPORATE LEVEL AND BUSINESS LEVEL STRUCTURES


Zappos.Com sole mission is to provide the best customer service possible.  The company goes to great lengths to find effective employees.  It even offers an opt out pay at the end of its customer service training.  It bases its corporate structure off of this and has developed ten core values listed as:

 

  1. Deliver WOW Through Service
  2. Embrace and Drive Change
  3. Create Fun and A Little Weirdness
  4. Be Adventurous, Creative, and Open-Minded
  5. Pursue Growth and Learning
  6. Build Open and Honest Relationships With Communication
  7. Build a Positive Team and Family Spirit
  8. Do More With Less
  9. Be Passionate and Determined
  10. Be Humble
Zappos.Com's parent company is Amazon as of 2009.  6pm.com is its acquisition and Zappos Insights was created as a subsidiary.  The company's core values and structure has many advantages.  Its commitment to making customer's happy is extremely important, as the payout is brand loyalty.  With most of its customer touch points online, Zappos.Com has to go the extra mile to provide an effective customer experience.  There is no instant validation like onsite shopping.  The convenience that Zappos offers is second to none in regard to customer service.  The site is extremely customer friendly, due to the company's steadfast efforts in providing happiness.  Customer service is accessible 24 hours a day and 7 days a week.  It allows customers to return products every single day of the year as well.
With the amount of time and effort delineated to the hiring process, the set back is high costs.  The optional pay out at the end of the training is a financial setback; it is also a waste of the company's time and efforts.  Zappos.Com's strong commitment to customer service may be more costly than the company may have wanted.  With the leniency afforded to customers with return policy, the company has to worry about lost profits and the cost of catering to customer needs. The company is so dedicated to this that the corporate and business level structures are the same.
In this arena, the pros outweigh the cons.  The extra cost is worth the assurance of customers.  Consumers should be a firm's ultimate priority.  In its earlier years, Zappos spent very little on marketing.  It is only recently that they started advertising via television commercials.  Zappos.Com treats the amount of money it spends on training its employees and catering to customer needs as the cost of marketing.  Hsieh once stated that the company makes $100 million dollars of hiring mistakes.  He is alluding to the opt out strategy; it is clear that the company values its corporate and business level structures.  Both structures have an objective of making operations run smoothly in order to serve the best interest of the customer.
DRAFT: This module has unpublished changes.