Zappos vs. Spartoo Digital Media Presentation

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By Donna Winer and Haley Forman

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Zappos vs. Spartoo: A Closer Look at Company Culture :

Zappos vs. Spartoo : A Closer Look at Company Culture By Donna Winer and Haley Forman

Zappos vs. Spartoo: Why We Chose These Two Organizations:

Zappos vs. Spartoo : Why We Chose These Two Organizations We chose to study Zappos - a global leader in online retail Compare Zappos to its emerging UK competitor- Spartoo Zappos’s company culture and values have distinctly distinguished itself from all other online shopping websites Growing companies, like Spartoo , have begun to emulate and adopt Zappos’s company business model Zappos and Spartoo are two competing high-end companies with similar company cultures and values

Goal of Study:

Goal of Study Goal of Study: A clear company culture with dedicated employees makes for a dominant organization that emerging competitors try to emulate Further Questions: What are the strategies and methods Zappos uses to gain success? What in their unique business model do others strive to achieve? What kind of business model does Spartoo pride itself on? How is it similar to Zappos ’ model? What do Zappos and Spartoo do that are similar? Which company does it better?

Zappos Overview:

Zappos Overview Founded by Nick Swinmurn in 1999, San Francisco Headquarters currently located in Nevada Employing over 1,300 people Company’s CEO: Tony Hsieh Zappos has built its’ company by providing the best selection of products with the absolute best customer service http:// about.zappos.com / zappos -story/in-the-beginning-let-there-be-shoes

Zappos Family Core Values::

Zappos Family Core Values: Deliver WOW Through Service Embrace and Drive Change Create Fun and A Little Weirdness Be Adventurous, Creative, and Open-Minded Pursue Growth and Learning Build Open and Honest Relationships With Communication Build a Positive Team and Family Spirit Do More With Less Be Passionate and Determined Be Humble http:// about.zappos.com /our-unique-culture/ zappos -core-values

Spartoo Overview:

Spartoo Overview Founded in 2006 by 3 French graduates: Boris Saragaglia , Paul Lorne, and Jeremie Touchard CEO and Co-Founder: Boris Saragaglia inspired by Zappos ’ online shoe retailing Launched on August 16 th 2006 Spartoo team consists of 180 people based in Grenoble, France Spartoo has expanded since its launch, now operating in over 20 countries with12 local-languages sites Spartoo offers a selection of over 30,000 models from 750 brands and receives over 14 million visitors per month Spartoo focuses on customer-service based attitude http:// www.spartoo.co.uk / spartoo.php

Spartoo Values as told by CEO Boris Saragaglia:

Spartoo Values as told by CEO Boris Saragaglia To admit error is to advance: We must admit making mistakes, to be wrong sometimes, because it is essential to progress. “Zero risk is often zero action!” Analysis and follow-up: “I think the decision can only be based on quantifiable, objective realities, in order not to disperse. Other entrepreneurs are more in the "I believe" in the analysis. This is not my case.” The customer center “Focused on the heart of business and its customers stay. In e -commerce, profitability is closely linked to the loyalty of the customer base. It is this basic fact that the value of the company.” http:// translate.google.com/translate?hl = en&sl = fr&u =http://business.lesechos.fr/entrepreneurs/success-stories/dossiers/10013992/10013993-comment-creer-un-concept-la-methode-spartoo-44534.php&prev=/search%3Fq%3Dspartoo%2Bbusiness%2Bmodel%26client%3Dsafari%26rls%3Den%26biw%3D1280%26bih%3D642

Method:

Method Organizational Documents Gathered press releases, reports, founding documents, and blogs of both companies Compared each organization’s documents and analyzed the way in which they expose their cultural values and public efforts Media Coverage Collected newspaper articles from both companies Analyzed the ways in which both companies are depicted in the press Personal Observations Personally observed and took field notes on the Spartoo’s website How people used the site Types of experiences interactions people have while on the site Family and Friends Interviewed family/friends on their personal opinions of Zappos Analyzed different people’s experiences/feelings of the company and website

Zappos’ Approach to Customer Service:

Zappos’ Approach to Customer Service Customer Service should not be a department Customer Service is the Company Culture Employees are trained to mitigate customer service issues via 24-hour phone call service Script-less customer service agents listen to customers There is no time limit on the phone for customer service calls Customer service calls should be fast, accurate and fulfilling Leverage social media platforms as a mode of relational building Facebook , Twitter, Instagram accounts promote visibility for consumers The key is for personal, emotional connection and to engage the customer http://www.zdnet.com/blog/btl/zappos-ceo-company-culture-is-higher-priority-than-customer-service/59245

Zappos’ Approach to Customer Service :

Zappos’ Approach to Customer Service Offer exceptional customer service Free Shipping both ways 365-day return policy Script-less customer service agents who actually listen to customers http://www.zdnet.com/blog/btl/zappos-ceo-company-culture-is-higher-priority-than-customer-service/59245

Zappos’ Nucleus of Success:

Zappos’ Nucleus of Success

Spartoo’s Approach to Customer Service:

Spartoo’s Approach to Customer Service Free delivery and returns Free exchanges up to 30 days Dedicated call center for advice Customer service questionnaires for feedback & opinions Social media presence: Channel sales Customer service communication Dissemination of information about the company News Customer Testimonies & Contest Participation http://www.internetretailer.com/mobile/2012/05/08/french-shoe-e-retailer-spartoocom-laces-rapid-growth

Spartoo’s Nucleus of Success:

Spartoo’s Nucleus of Success

Similarities:

Similarities Focus on dominating the online shoe / accessories retail market Commitment to delivering exceptional customer service Offer free delivery & returns Utilize customer call centers for assistance Use of social media to engage audience

Differences:

Differences Zappos Established company culture that guides all operations Emphasize storytelling and role-modeling Operates solely in the U.S. Provides complete transparency to consumers regarding corporate operations via blogs and videos Spartoo Absence of a clear company culture Focused predominately on providing great services Offers discounted prices International market presence

Improvement Suggestions Zappos:

Improvement Suggestions Zappos Offer seasonal or occasional discount opportunities Implement an online chat-box for real time customer assistance online without picking up a phone

Improvement Suggestions Spartoo :

Improvement Suggestions Spartoo Convey a clear overarching company culture to better direct, manage, and guide employees Establish virtual spaces to allow visibility to consumers regarding business operations Provide an unconventional atmosphere at work to encourage autonomy, creativity, and overall employee satisfaction

Conclusion:

Conclusion Zappos’ business model is attractive to emerging competitors abroad… Even though ‘copy-cats’ like Spartoo have found similar success, Zappos’ CEO Tony Hsieh warns – Company culture cannot be copied

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