Tony Hsieh at Zappos-Structure Harvard Case Solution & Analysis

Tony Hsieh at Zappos-Structure Case Study Solution


Zappos is the company of the United States, established in late 1999.(Petriglieri, August 26, 2016) The company starts from a shoe store and offers all the shoes in the market with all sizes and decent designs. Zappos sell the multiple brands shoes, which satisfy the customers with a higher desire of purchasing from Zappos. With the hundreds of brands of shoes, sandals and slippers, the company also sell the variety of bags like handbag, shoulder bad, clutches, sunglasses, socks, belts and many more accessories. The financial year of 2005 shows that the Zappos has earn the $300 million revenue. The Nick Swimmer, an internet capitalist, is the founder of the Zappos, whose main aim is to deliver all sizes and designs of shoes through online median. Zappos offer the brands of all groups’ men, women and children. The firm also gives the exchange and return of products services to customers by providing them an account and password through which they deal with the store and can easily return their order. Zappos has about 400 employees which provide services to the customers.


The Zappos compete with many competitors, which also offer the same type of product in the market of the United States. Blue fly pt.,, and online are competitors.

Problem Statement:

The Zappos face the principal challenge of change in hierarchy which arise from the culture of Holocracy. In this culture, the employees are not permanent in their jobs. They perform temporary roles which reduce the productivity of existing employees which was satisfied with their jobs in previous culture.

Whose Key Problem is it?

Tony Hsieh faces the key problem arise from changing in culture of the organization. Tony is the owner of the company and is so much worried about the company as he observes only a few of the employees are happy with the changing culture. With changing in culture, most of the employees of Information Technology left the Zappos, which directly shows negative impact for the company because in online business, the IT department is the most valuable department of the company. New culture of Holocracy shows low satisfaction of employees with poor performance. Unsatisfied employees never do the job with a full commitment to accomplishing the organizational goals. Human Resource Management is also analyzed that if the existing employees are switch their jobs, the Zappos moves towards less profitability.

Why Tony Hsieh Make this change? Why he is doing now?

As the owner of the Zappos has the mind-set of a successful entrepreneur, he always believes on the innovation, productivity and differentiation. Tony wants to try a new practice at the working place which most of the people cannot adopt because Holocracy has few challenges which the organization faces. Tony tries to provide a flexible environment to the employees for increasing the effectiveness of services and sales, which helps the organization to gain the competitive advantage. The previous culture was job description oriented and Tony wants to change and make the culture task oriented.

Tony Hsieh is a very good boss in the working place. He is the most liked leader for all the employees of the company. Tony always thinks about the productivity of employees and satisfaction of employees. Tony Hsieh is an open-minded boss which makes friendly relation with employees. From the foundation of the shoe store to current year the Tony always believes in creativity for increasing the brand equity and positioning in the market. Tony maintains the culture of happiness because he believes that the happy employees always generate favorable outputs.


For analyzing the business of Tony, we do some analysis to better understand the Zappos Company....

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