Trends and Change: Zappos
Assignment 4: Trends and Change
Abstract The Zappos company was founded in 1999, built on a solid foundation of a unique culture and core values. Current CEO Hsieh believes "if we get the culture right, then everything else, including the customer service, will fall into place” (Taylor, 2009, article, p.3). In 2009, Amazon acquired the firm and the combination of Amazon’s prominent position and Zappos company culture led to the creation of the largest online shoe and apparel shop. Using a loyalty based business model and relationship marketing; repeat customers, word of mouth and viral marketing became its primary resource of revenue.
UPCOMING TRENDS AND CHANGE TOOLS
Introduction
Although Zappos presently provides an appealing culture environment, Zappos will require a solid understanding of the key future trends in the next 10 years. As efficient as Zappos may be, they must be prepared to handle any challenges, risks or even opportunities that may come their way. Based on our readings and research, we can predict the scope of future changes and how they will affect Zappos. In the article “The 10 Trends You Have to Watch”, authors Eric Beinhocker, Ian Davis and Lenny Mendonca suggest several major anticipated trends including declined trust, management delegation, acquisitions, innovation and questionable price stability. The following paper discusses the four most important trends that are anticipated to affect Zappos organization. The first two are suggested from our readings while the last two proposed changes are presented from research. The discussion also explores the kinds of change management tools and skills required to address each trend.
Major Trends
Declining trust is anticipated to rise over the upcoming years, no matter what company or industry we are in. “The Edelman Trust Barometer found that
Abstract The Zappos company was founded in 1999, built on a solid foundation of a unique culture and core values. Current CEO Hsieh believes "if we get the culture right, then everything else, including the customer service, will fall into place” (Taylor, 2009, article, p.3). In 2009, Amazon acquired the firm and the combination of Amazon’s prominent position and Zappos company culture led to the creation of the largest online shoe and apparel shop. Using a loyalty based business model and relationship marketing; repeat customers, word of mouth and viral marketing became its primary resource of revenue.
UPCOMING TRENDS AND CHANGE TOOLS
Introduction
Although Zappos presently provides an appealing culture environment, Zappos will require a solid understanding of the key future trends in the next 10 years. As efficient as Zappos may be, they must be prepared to handle any challenges, risks or even opportunities that may come their way. Based on our readings and research, we can predict the scope of future changes and how they will affect Zappos. In the article “The 10 Trends You Have to Watch”, authors Eric Beinhocker, Ian Davis and Lenny Mendonca suggest several major anticipated trends including declined trust, management delegation, acquisitions, innovation and questionable price stability. The following paper discusses the four most important trends that are anticipated to affect Zappos organization. The first two are suggested from our readings while the last two proposed changes are presented from research. The discussion also explores the kinds of change management tools and skills required to address each trend.
Major Trends
Declining trust is anticipated to rise over the upcoming years, no matter what company or industry we are in. “The Edelman Trust Barometer found that
References: Beinhocker, Eric, Ian Davis and Lenny Mendonca. “The 10 trends you have to watch.” Harvard Business Review (July- August 2009) 55-60. Chang, Andrea (July 2009). Amazon to buy Zappos. Los Angeles Times. Retrieved on March 8, 2012 from http://articles.latimes.com/2009/jul/23/business/fi-amazon23 Medina, Jennifer (December, 2010) Neuhof, Florian (February, 2012) The National. Retrieved on March 9, 2012 from, http://www.thenational.ae/business/energy/concern-high-over-global-oil-supplies Parr, Ben (January, 2010). What the web of tomorrow will look like: 4 big trends to watch. Mashable.com. Retrieved on March 10, 20120 from http://mashable.com/2010/01/24/internet-of-tomorrow-column/ Taylor, Bill. “Amazon and Zappos: A savvy deal”. Harvard Business Review (January 2009).