Business Policy & Strategic Management Presentation
Zappos was founded by Nick Swinmurn in 1999.
The company was officially launched in June 1999,
under the original domain name "ShoeSite.com.“
A few months after their launch, the company's name
was changed from ShoeSite to Zappos (a variation of
"zapatos," the Spanish word for "shoes") so as not to
limit itself to selling only footwear.
During this time, Hsieh found that he "had the most fun
with Zappos" and came on board as co-CEO with Nick
Swinmurn. After minimal gross sales in 1999, Zappos
brought in $1.6 million in revenue in 2000.
Zappos Family Core Values
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
On average, Zappos employees answer 5,000 calls
a month, and 1,200 e-mails a week (except in the
holiday season, when call frequency increases
significantly). Call center employees don't have
scripts, and there are no limit on call times. The
longest call reported is 10 hours 29 minutes.
A training team trains employees in each core value. So,
every employee hears the same message, learns the
values, and learns the behavior that is expected to live the
values every day at work. The trainers are available for
training value gaps.
Managers are key at Zappos for promoting the company
culture. Managers hire and fire, but they must do it with
Human Resources support. Managers make job offers call
and then do a written job offer. Managers enter data in
offer letter forms for consistency.
Zappos takes cultural fit seriously and hires slowly. Months can
pass between an initial cultural fit interview with an HR
recruiter and an actual job offer. If a potential employee fails
to pass the cultural fit interview (50% of the weight in hiring),
he or she is not invited to meet the hiring manager and other
employees. While not all hires wend this slow road, Zappos
hires for cultural fit first.
Managers are responsible for creating career paths within
their departments. They have a regular career path for
individual contributors and a super star career path for
individuals who excel. Living the cultural norms is key in career