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 62% of adults in 20 countries trusted corporations less in December 2008 than they had a year earlier” (Beinhocker et al. ,2009, p1).
I selected this trend because a loss of trust will significantly affect Zappos power of providing an online shopping platform. “For an individual company, loss of trust leads to higher transaction costs, lower brand value, and greater difficulty attracting, retaining, and managing talent. ” (Beinhocker et al. , 2009, p. ).
The Media and The Youth: How The Media Affect Children and Adolescents
Have you ever compared your own childhood with the childhood of kids nowadays? What do you feel when looking at your children, little siblings or any young person in your family spending a whole day stuck in front of a computer or laying on a sofa watching television? Have you ever thought about the impact that the overexposure to the media produces over the youth? The truth is that, nowadays, the ...
I believe maintaining trust is valuable as it can differentiate a firm while building strong relationships. UPCOMING TRENDS AND CHANGE TOOLS Trust encompasses several areas, from customers, employers to stakeholders. To sustain a trustworthy relationship, there must be open communication, a high level of employee morale, respect and honesty. In addition, benefits, compensation, rewards, culture and community events all build and develop a sense of trust. To address this concern, Zappos should continue to implement change management tools and continually seek new ways to build and sustain trust.
With an effective change leader in place, “Corporate leaders need to demonstrate to civil society that they understand popular and political concerns related to executive compensation, risk management, board oversight, and the treatment of employees facing layoffs. ” (Beinhocker, et al. , 2009, p3).
In addition, “Regaining trust also means dispensing with the view that the only objective of management is to increase shareholder value. Broadening the list of key stakeholders to include employees, customers, suppliers, communities, the press, unions, government and civil society will help companies rebuild creditability. (Beinhocker et al. , 2009, p3).
Trust also entails the company’s culture environment. Since Zappos is ahead of the curve, they have already set the bar by providing a warm and friendly environment. Zappos appreciates diversity, individuality, communication and encourages open and honest relationships. CEO Hsieh also states, “I want to be in an area where everyone feels like they can hang out all the time and where there’s not a huge distinction between working and playing (Medina, 2010, para. 14).
Team outings, holiday events and conferences are all part of Zappos culture and are geared towards team spirit.
