Introduction Zappos is an online shoe retailer that started its business in the year 1999. The company later expanded and increased the variety of the products of its business by adding clothing, beauty products, and housewares. The Zappos Customer Loyalty Team Case Study emphasizes on the customer service department and the initial focus the drop ship method. The company also created a brick and mortar storefront to expand the business from online only and increase sales. The management of Zappos took an innovative approach to earn their required return on investment. They emphasized their customer service and employee training programs to gain greater dividends. In addition, Zappos started to create value for its customers through its …show more content…
They created the “WOW” experience for the customers and communicated with them in an informal and unconventional way, this established a memorable and long-term connection with the customers. Zappos had developed 10 core values by taking input from their employees. Those values, along with the culture book, determined the path for making appropriate decisions and building an open and honest relationship through communication. The Zappos leadership team invested a lot of time and effort in developing their human resource. In 2008, 10 years after Zappos was established, the company sales grossed $1 billion. When the founder of the company began to sell its shoes online, the company became the leading online merchant in the world and started to grow at a fast pace and became very profitably. Further, the company had also extended the range of its product offerings in order to provide its customers different products along with enthusiasm from the employees to provide amazing service. Problem …show more content…
The management at Zappos attracts customers through exceptional service that has created a “WOW” philosophy and embedded it within the fabric and culture of the company. Zappos has several competitive dimensions in which they compete with other online retailers in the market. The company has always maintained its sales growth rate on the long-term basis at a certain output level. Therefore, the competitive advantages of Zappos have always been sustainable. The corporate culture of the company is nurtured and developed by its management team. Zappos has a very strong corporate culture. The core values of the business and its culture have a strong influence on all aspects of the business, including the company’s supply chain. Employee training and the hiring of the right employees were vital in growing and maintaining the current culture. Other competitive dimensions include the customer service training and employee development
According to the article “What is Organizational Communication”, there are multiple factors that create this culture. The way both customers and employees are treated because that shows if the employer values them, the written rules and norms as those are the guidelines to running the store, the dominant values and the feeling/climate that is conveyed by physical arrangements or personal interactions as that sets up the atmosphere of the store. Lastly, the freedoms employees are given also affects the culture, and a
If employees are not familiar with the company’s goals and what the company is expect from them they won’t be able to perform good. Successful organizational culture requires a team work. Johnson should establish the espoused values of the company. These are the stated values and norms that are preferred by the company (Kreitner, 2013, p.63). Johnson should set the basic assumption which values employees (Kreitner, 2013, p.65).
Organizing – Organizational Culture Organizational culture consists of the set of shared, taken-for-granted implicit assumptions that a group holds in the workplace (Kinicki & Williams 226). The Publix Corporation formally states its commitment to its organizational culture in their published mission statement. One of the bullet points of the Publix mission is dedication “to the dignity, value and employment security of our associates” ("Mission Statement & Guarantee"). It is the founder’s values that drive an organization’s culture (Kinicki & Williams 227).
It markets itself as a “fast-paced, innovative and collaborative environment.” This environment aims to do things the right way and ensures secrecy. The organizational culture that Steve Jobs created helped the employees and encouraged them to debate and to give different ideas in order to contribute and be a part of the firm’s success. Moreover, the culture motivated all the employees to believe in the vision set in the beginning. The core values found in the culture of Apple are the reason behind their successful products.
The Importance of a Company’s Culture The culture of a company is one of the most important and sometimes overlooked factors in an organization. The culture can increase employee engagement and increase productivity which will allow a company to reach its goals, “From productivity and engagement in the organization’s day-to-day, to an employer brand that naturally fuels recruiting efforts, to creating a lasting brand that customers immediately recognize, there’s no escaping it – culture radiates outward into the marketplace” (Straz 2015). The culture can have a great impact on the employees. Employees thrive in a positive working environment and the ability to engage with their managers without fear of retaliation.
Question 1 answer: Customer relationship management is mainly about building relationships with a company’s targeted profitable customers and maintaining that relationship through delivering customer value, as in how a consumer perceives a certain product and values it enough to buy it rather than buying the competitor’s product, and delivering customer satisfaction where the product meets the exact expectations the consumer had actually expected from the product or more, but not less. Companies can build customer relationships at many levels, depending on the nature of the target market (Kotler and Armstrong, 1988). Companies with many low-margin customers can develop basic relationships by which a company doesn’t get to know it’s consumers
EXECUTIVE SUMMARY Zara can be identified as one of the largest international fast-fashion organizations which is owned by the fashion group Inditex. Their first store was opened in 1975 and from that point of time, they have had an unstoppable growth throughout the years as up to now. After 42 years of operations, today Zara has been able to expand themselves with 2169 stored over 82 countries all over the world. Rather than they were a high fashion brand in the country, Zara has focused themselves as a fast fashion brand where they will change their fashions at a great pace where no one can reach them. Also, the most attractive thing is that all those latest fashion designs are introduced to the public at an affordable price.
Zara is vertically integrated and takes care of designing, manufacturing and distributing its products. This gives it an immense hold on the market as most of the operational inefficiencies are eliminated by the company’s on employees who identify with the larger goal and value proposition of the brand (The New York Times, 2012). Zara works along with the consumers to understand them more closely rather than imposing its own predictions on them. Zara creates an environment of artificial scarcity in its stores for every design it manufactures so that consumers get a feel of exclusivity rather than stock pile up (Johnson, 2012). This gives them a sense of pride to buy a limited edition of products which they find at Zara stores only.
In terms of differentiation, ZARA’s “fast fashion” philosophy is unique, which create demands and lead the trend in the garment market. They respond very quickly to the demands of target customers and focus on young fashion. In production, they design quickly, production quickly and update quickly.
Culture and Values: The enduring core values are: a. Put people first : Take care of the associates and they will take care of the customers b. Pursue excellence: Take pride in the details- everyday, in every destination worldwide c. Embrace change: Innovation has always been a part of the Marriott
Customer satisfaction is at the core of their actions in every step of their supply chain. The company offers different products in their stores, letting the customers decide whether to consume them
Customers will be a loyal customer if their opinions and needs are met by a company. I believe this is the most important building block. I have worked as a manager of a retail card and gift store in Wantagh for the past five years. Throughout my five years, I take great pride in the customers that shop with us. If there is something that I can do to help my customers or order them a certain product, I don’t hesitate.
Starting as just a mail-order business with some retailers, it quickly opened new manufacturing facilities, starting with New England in the early 1980s as well as it signed contracts with other international distributors. While producing at lower costs outside the US, New Balance sold its shoes at a higher price than the average market and started to have huge sales anyways. Moreover, what makes New Balance’s operation strategy unique is that they offer their shoes in multiple widths and always have inventory in case the retailers get out of stock. This supports directly two of New Balance’s main competitive objectives being first that they want their customers to feel uniquely served by offering several widths of their shoes for different kind of feet and letting the customer not wait for the delivery of the shoes but always having inventory to push into the retail stores in case of scarcity. A good customer experience is one of their key competitive
For example, if all the employees of Amazon of always trying to find the mistakes that their peers are doing to report them to their superior and were working together instead, they could put all this unnecessary energy in a focus group to find innovative ideas and to help each others. This type of positive climate could help people staying in the company and not leaving after few months, because the stress encounter at work is too high. The article cited that Amazon had the second-highest turnover among the Fortune 500 companies, with a median tenure of one year, which is really low. [2] The espoused values of the Amazon’s culture are “work hard, have fun and create history”, but the enacted values just seemed to be hard work and success. The Amazon culture can be described as an outcome orientation organization with managers asking for results without excuses.
Customer loyalty is one of the most important and critical factors for a company's success. Customer loyalty happens when customers have a great experience, and it leads to many benefits: loyal customers return for future business, refer friends and family to a business, and spread positive comments about a company through word-of-mouth advertising. With social media and the ease of rating companies. There are several factors that can influence customer loyalty. First the place and product, which means how easy is it for customer to access the place, Second is promotion There are many ways to promote the business, from pricing specials to free gift with purchase.