Zappos Faces Competitive Challenges: Case Study 1

MSL 730: HUMAN RESOURCE MANAGEMENT
Zappos Faces Competitive

Challenges
Case Study 1
Keshia Williams
Zappos seems to be well-positioned to have a competitive advantage over the other online
retailers. What challenges discussed in Chapter 1 pose the biggest threat to Zappos’ ability
to maintain and enhance its competitive position? How can human resource management
practices help Zappos meet these challenges?
Zappos is an online retailer that is best known for their culture. It has focused on a 10 core
values that successfully helped run their business. Zappos does have a competitive advantage
over other online retailers however, one threat Zappos can face would be globalization. If it
wasn’t for the use of competitive pricing, Zappos wouldn’t be able to offer free shipping and
returns. Buying products overseas in China, Korea, etc. tend to have a much cheaper price with
little to no shipping fees. The downfall to shopping international is the availability to speaking
with a customer service representative regarding product issues, shipping, and general questions.
Human resource management practices can help meet these challenges by helping recruit the
right employees in order to continue to promote the vision Zappos currently hold. One
suggestion Zappos could use is assessment testing in order to make sure they have the right skills
and requirement for the company. Zappos hiring process can take months when finding the right
candidate. Through the proper use of talent management, it can weed out the bad apples earlier
in the process.
Do you think that employees of Zappos have high levels of engagement? Why?
Zappos does have a high level of engagement. Zappos culture plays a big role in creating their
levels of engagement. The strategy that was created by Tony Hsien has helped hire new
employees based off their culture fit with the company. There are two major components within
Zappos engagement program including their new hire training program. With the new hire
training program, regardless of job level, every employee from senior executive to entry level
employees goes through the same onboarding process. Onboarding lasts for one month and
during this time new hires must participate in the call center activities in order to understand how
this popular position is conducted. During Zappos’ busy season, every employee works in the
call center (eliminating the need to hire seasonal workers). The remainder of the training is
focused on understanding the company culture and core values. The peace team at Zappos is a
group of six HR professionals focused solely on engagement. This team runs a variety of
initiatives including engagement programs, incentive programs and company charity events.
Many examples would include offices having helium balloons for employees to recognize the
achievements of co-workers. Events, parties and parades are organized by this team and held
several times throughout the year. Employees at Zappos have the ability to come to work as you
are, allowed to decorate their workspace to their style and are provided free lunch.
Which of Zappos’ 10 core values do you believe that human resource practices can
influence the most? The least? Why?
Zappos defined its culture with the 10 core values. HR and management must reinforce these
values with employee, visitors, customers as well as business partners. In human resource the
values that influence the most are:
Delivering wow through customer service- customer service shouldn’t be just a department; it
should be within the entire company. Human resources and customer service comes hand in
hand. It is your job to build open and honest relationship through the use of communication in
order to gain trust within employees. When it comes to customer service you must do something
that’s above and beyond for what is expected (do more with less). With pursuing growth and
learning, employees look to you for knowledge. You must be up to date with the right
information to give out or for training purposes. You are more than likely to experience a
change in the workplace. Some examples of change include management, technology, policies
and many procedures. With embrace and change, you must be open to flexibility and maintain a
positive attitude (be passionate and determined). Overall in human resources it is your
responsibility to recruit, train, and develop people who would fit within the company. There are
employees who been with the company for many years. Few tend to spend more time at work
than at home and considered their co-workers to be a second family. With building a positive
team and family spirit, it brings a welcoming atmosphere among employees. This helps with
retention and not having to hire new people every 6 months.
Creating fun and a little weirdness would be considered the least with human resources practice.
On occasions it would be okay to have fun at work. However, having too much fun can take the
mission away from doing your (and the employees) job. It would be more of a distraction than
advantage to create fun and a little weirdness at work. An HR related example would be you are
conducting a new hire orientation and you are dress in drag for costume day at work. This can
make some new hires uncomfortable causing either them to leave or wanting them to take the
money instead of the position with the company. At the end of the day this can cause the
company to lose more money.

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MSL 730: HUMAN RESOURCE MANAGEMENT

Zappos Faces Competitive

practices help Zappos meet these challenges?

influence the most? The least? Why?

values that influence the most are:

retention and not having to hire new people every 6 months.

company to lose more money.

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