I found the lecture conducted by Danielle van Jaarsveld on the concepts of organizational culture and human resources management very interesting. This is partly due to the fact that I have bought my shoes through Zappos for the past few years and was not aware of the operations fuelling the business. I was very intrigued by the customer service and general culture revolving around the company. For this reason, I have chosen to do a business model canvas to outline Zappos’ structure in what makes the company successful:
Key Partners: Founder – Nick Swinmurn, CEO – Tony Hsieh, the “No Title/Do Everything” – Fred Mossler.
Key Activities: Customer Service, Selling of Clothing/Shoes, Social Media/Website Platforms.
Key Resources: Employees for Customer Service/Production, Investors.
Value Propositions: Culture, Clothing, Customer Service, and Community (the 4 C’s). Company Slogan: “Powered By Service”.
Customer Segment: Mass Market (all ages, different price points).
Customer Relationships: Self-Service: ordering through the website / Personal Assistance: one-on-one customer service over the phone / VIP program / free shipping / 365-day return policy.
Customer Channels: Online Sales on Website, “Word of Mouth” marketing, Quality Customer Service (to keep consumers coming back).
Cost Structure: Fixed-Costs: employee salaries, machines, administration / Variable Costs: employee wages, variable overhead.
Revenue Stream: Sale of products through the website.
Sources:
Zappos Website – zappos.com
Alexandra Jacobs, “Happy Feet,” The New Yorker, Sept. 14th/09