Comments on: Why Zappos Shouldn’t Be Your Business Model http://www.ariozick.com/why-zappos-shouldnt-be-your-business-model/ It's About Rankings, Not Opinion. Thu, 21 Jul 2011 23:43:28 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Marcel Wiedenbrugge http://www.ariozick.com/why-zappos-shouldnt-be-your-business-model/#comment-23117 Marcel Wiedenbrugge Sun, 10 Apr 2011 13:57:25 +0000 http://www.ariozick.com/?p=155#comment-23117 I think your blog puts the Zappos business model a bit more into a balanced perspective. I have read (and studied) the book Delivering Happiness and I also read the related Zappos Culture Book (2010 edition), which I both really enjoyed. But you are absolutely right, that the financial part is the weak spot, which does not means that the principles on which Zappos is build are wrong or should not be applied. I think the business model, where culture (people) is the brand (and the rest will automatically follow) is good in its basics. 1) Have an overall common goal (WOW-ing customers, offer exceptional customer service) that applies to all people working for the organization. 2) Create genuine values that apply to the people working for your organization. 3) Hire people that have a culture fit with the company, so they really live the values, as the company values are their own values as well (creates more consistency). 4) Optimize the terms and conditions that people can express and develop themselves according to their own wishes and capabilities. Especially 3 and 4 create a culture where people feel connected and over time a stable, collaborative, customer centric and integrated working environment arises. However, the purpose of a company is not profits and cash flow, but value creation. If you do that right, it leads to profitability and cash flow. Optimizing profitability and cash flow relates to how well you manage your supply chain, working capital and customer relationships. Zappos had many moments in its history, where they almost went bankrupt due to serious cash flow (and profitability) problems. As such, this is the mayor weakness in an otherwise strong concept. Nowadays there is lot to do around profitability (especially when we are talking about banks and bonusses), but it is an important topic to address as well as cash flow. Profit is not the issue, but it is the way it is created as well as the way it is reinvested. Zappos should have addressed this more profoundly and scientifically in order to build a sustainable and profitable business model. Now they were forced to sell themselves (though Amazon and Zappos fit well together). However, the business model of Zappos is a good development in the direction towards sustainable business models and personally I like to see more businesses develop into this direction without compromising cash flow, profitability and sustainability. Best regards, Marcel Wiedenbrugge I think your blog puts the Zappos business model a bit more into a balanced perspective. I have read (and studied) the book Delivering Happiness and I also read the related Zappos Culture Book (2010 edition), which I both really enjoyed. But you are absolutely right, that the financial part is the weak spot, which does not means that the principles on which Zappos is build are wrong or should not be applied.

I think the business model, where culture (people) is the brand (and the rest will automatically follow) is good in its basics.

1) Have an overall common goal (WOW-ing customers, offer exceptional customer service) that applies to all people working for the organization.
2) Create genuine values that apply to the people working for your organization.
3) Hire people that have a culture fit with the company, so they really live the values, as the company values are their own values as well (creates more consistency).
4) Optimize the terms and conditions that people can express and develop themselves according to their own wishes and capabilities.

Especially 3 and 4 create a culture where people feel connected and over time a stable, collaborative, customer centric and integrated working environment arises.

However, the purpose of a company is not profits and cash flow, but value creation. If you do that right, it leads to profitability and cash flow. Optimizing profitability and cash flow relates to how well you manage your supply chain, working capital and customer relationships.

Zappos had many moments in its history, where they almost went bankrupt due to serious cash flow (and profitability) problems. As such, this is the mayor weakness in an otherwise strong concept.

Nowadays there is lot to do around profitability (especially when we are talking about banks and bonusses), but it is an important topic to address as well as cash flow. Profit is not the issue, but it is the way it is created as well as the way it is reinvested. Zappos should have addressed this more profoundly and scientifically in order to build a sustainable and profitable business model. Now they were forced to sell themselves (though Amazon and Zappos fit well together).

However, the business model of Zappos is a good development in the direction towards sustainable business models and personally I like to see more businesses develop into this direction without compromising cash flow, profitability and sustainability.

Best regards,

Marcel Wiedenbrugge

]]> By: highrankingsseo http://www.ariozick.com/why-zappos-shouldnt-be-your-business-model/#comment-6962 highrankingsseo Sun, 10 Oct 2010 15:43:15 +0000 http://www.ariozick.com/?p=155#comment-6962 Hey, It’s excellent to see sites with bing and thanks for the share that you’ve given. Commonly, I’m really amazed, but etc. Hey, It’s excellent to see sites with bing and thanks for the share that you’ve given. Commonly, I’m really amazed, but etc.

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