Overview of Zappos Performance - Term Paper Example

? Zappos Overview of Zappos Zappos.com is determined to be an online retail store. It was founded by Nick Swinmurn in the year 1999. His original idea primarily involved creating a website, which will offer a wide range of best shoes. The shoes that were thought of to be incorporated in the offerings entailed differentiated varieties, styles, brands and sizes among others. During the period of past 9 years, the brand has greatly evolved to new heights. The objective of the company is essentially to provide the customers’ with best services online not only shoes as the product but also in other categories. The vision of the company reflects that out of total sales, 30 percent of retails trade will be made through online. Furthermore, the company’s vision also replicates that best services will be offered to the end customers’. The company deals in the sales of clothing and shoes through online. Its primary revenue is gained from the sales of shoes that contribute around 80 percent of the entire business. On analyzing the company background, it can be observed that Zappos is sells around 50,000 varieties of shoes within the market. The company believes in the ‘loyalty business model’ along with ‘relationship marketing’. The vital reason behind the acceleration of the company’s growth can be considered as its repeat customers. Moreover, the company has not invested much in the advertising aspect; in-fact the word-of mouth has ensured extensive growth and development. It is also famous for its reputation pertaining to customer service. For example, every new employee being hired within the corporate office requires a vigorous training of weeks on customer loyalty. This training is the initial phase and compulsory for all the employees before they enter into the actual workplace (Zappos, 2013). Four Problems Being Faced By Zappos Every organization in the present business environment faces an assortment of challenges. It has been recognized that an organization trading through online website faces certain viable challenges as compared to traditional ‘Brick-and-Mortar’ organizations. The persistent risk of online organization is hacking of the information. Zappos being an online company also faced the problem of hacking. It has been ascertained from a news report that the hackers got hold of around 24 million of customers’ personal information. This has created an immense problem for the company. In relation to hacking, the customers’ of the company have filed a suit against it. The management of Zappos wanted the matter to get into settlement pertaining to the terms of service. However, the court overruled the petition and the company was asked to present in the court for trial session (Thomas, 2012). Another major problem faced by the company that it needs to overcome is recognized to be the traditional one way thinking. According to the company CEO Tony Hsieh, the organizational culture tops the priority list than customer service. For any organization to sustain, both the aforementioned requirements are necessary. Only focusing on effective organizational culture without rendering proper customer service might lead to adverse intricacies. Organizational culture and customer satisfaction facilitate to establish a concurrent relationship (Edwards, 2012). In keeping with Zappos, another problem relates with ordering shipment. It has been recognized that the intense security check of Zappos also creates numerous problems for the customers pertaining to shipment. Problem pertaining to the order shipment has significantly affected the customer base of the company. The hurdle in the continuous and steady flow of cash within the company is another problem that has taken place within the problems’ purview. Technologies being applied within the company are not that effective in tracking the customers’ security alert and receive instant cash against the services being paid (Hsieh, 2010). Action Plan for Zappos In order to mitigate the problems being faced by the company, it is necessary to conduct a meeting with the top executives and Chief Executive Officer (CEO). All the crucial decisions are always made by company’s management. IT department will also be included as their role is vital in mitigating the problem. It is necessary for the management to understand the solutions and then implement them within the organizational operations. In accordance with the problem of hacking, it can be said that the company can go for advanced storage process to handle and secure customer database. The company can go for double security check system for ensuring customers’ requirements and personal details. The IT department of the company can implement more internal resources in order to secure the information. The IT team can incorporate security checks such as ‘agreed with the terms and conditions’ or ‘are you sure among others’ in the process of placing the orders. With regard to the problem of culture and customer satisfaction, the management can ensure to execute both at par. It is necessary for the development and growth of the company within the competitive scenario. The management can ensure better operational execution to maintain culture along with customer satisfaction. This will facilitate the company to maintain a set of repeat customers who can leverage greater benefits for the company in the long run. Furthermore, concerning the problem related to order shipment, it can be mitigated by ensuring proper online technique. The IT department can incorporate a process that will ensure security checks immediately on the arrival of new product requirement. It will decrease the line of hurdle in the order shipment. This will further make the customers’ satisfied and happy. In lieu of online trading problem pertaining to cash flow, it is observed to be a very common scenario. The transactions are based on the web for Zappos therefore monetary returns become a major factor. The management can go for cash on delivery option or can try for other technical procedures by collaborating with the IT team. This problem can be well ensured by implementing a new strategy of cash transaction for steady cash flow. Monitoring of the Results and Encouraging Continued Innovative and Creative Thinking In correspondence with the solutions that have been given for mitigating the problems performance measurement is an essential part. The entire work process can be monitored by implementing a tracking record. The IT department can design a tracker that can ensure the overall transactions being made and security being provided to the customers. They can also incorporate certain software to derive the results of cash flow and monitor overall transactions. This would enable to determine the level of customer preference along with facilitating to understand if customers are satisfied with the prevailing upgraded online security measures of the company or not. Moreover, in order to encourage continued innovative and creative thinking, newly developing internet protocols and security measures need to be introduced in accordance with evolving threats. Moreover, improper use of the company’ network system should be controlled to prevent any threat security breach. References Edwards, J. (2012). Check out the insane lengths Zappos customer service reps will go to. Retrieved from http://www.businessinsider.com/zappos-customer-service-crm-2012-1?IR=T Hsieh, T. (2010). How I did it: Zappos’s CEO on going to extremes for customers. Retrieved from http://hbr.org/2010/07/how-i-did-it-zapposs-ceo-on-going-to-extremes-for-customers/ar/1 Thomas, O. (2012). Almost every website on the planet could be in legal jeopardy, thanks to Zappos. Retrieved from http://www.businessinsider.com/zappos-terms-of-service-ruled-invalid-2012-10?IR=T Zappos. (2013). In the beginning - let there be shoes. Retrieved from http://about.zappos.com/zappos-story/in-the-beginning-let-there-be-shoes Read More