Established in 1999, Zappos.com has quickly become a leader in online apparel and footwear sales by striving to provide shoppers with the best possible service and selection, with gross merchandise sales exceeding $1 billion annually. Zappos’ company culture delivers happiness. Zappos’ CEO says, “It’s a brand about happiness, whether to customers or employees or even vendors.” Zappos’ zany corporate culture and focus on customer satisfaction has made it both successful and a model for other companies. In 2010, Amazon bought the company for $1.2 billion. Although Hsieh had rejected an offer from Amazon in 2005, he believed that this buyout would be better for the company than management from the current board of directors or an outside investor. Amazon agreed to let Zappos operate independently and to keep Hsieh as CEO. Hsieh made $214 million from the merger, and Amazon set aside $40 million for distribution to Zappos employees. After the merger, the company restructured into 10 separate companies organized under the Zappos Family. In spite of merging, Zappos intends to continue to deliver happiness their customers. This paper examines how Zappos’ focus on happiness has contributed to its success. First, I examine the strategies of Zappos, its core values, and its unique business model. Next, I figure out Zappos’ a unique strategy in a competitive environment. Third, I analyze SWOT of Zappos and other two companies.
First of all, we can find Zappos’ mission statement. As grow as the company, it has become more and more important to explicitly define the Zappos core values from its developing culture, brand, and business strategies.
These are the ten core values: To provide the best customer service possible. 1. Deliver WOW Through Service 2. Embrace and Drive Change 3. Create Fun and A Little Weirdness 4. Be Adventurous, Creative, and Open-Minded