The paper "Zappos Strategy and the Effect This Has on the Company's HR Planning" is an outstanding example of a management assignment. The environment which influences the Zappos strategy will be analyzed using the PESTLE analysis. In addition, its effect on the company's HR Planning and implementation will be explored. According to Johnson et. al (2008, p 2), the PESTLE framework is a tool of analysis which is basically put into the utility in the identification of principle change drivers in the strategic environment. In this regard, PESTLE analysis entails political, economic, social, technological, legal and environmental factors. All these factors have been key in shaping the external operating environment of Zappos as explored in the subsequent section. Political factors This mostly based on the fact that Zappos has to understand the rules and regulations in the countries they are doing business in.
This is based on the fact that this company has expanded into diverse countries around the globe and they have to understand the rules and regulations in these countries. This is based on the background that Google was banned from China after the governmental decision that Google threatens the community and the market at the national level by posting inappropriate contents in the databases.
Consequently, Google lost the market in China due to a political decision, and thus, Zappos has to be wary of these factors. Economic factors Perhaps the most detrimental factor that has affected Zappos is the 2008 economic recession. This saw the shift of consumers’ preference from buying online to doing their purchases in the stores in the neighbourhoods. This is based on the fact that most of the consumers have been preferring going to the stores, paying for products and having them immediately rather than giving bank details and waiting for several days for the product to be delivered.
Nonetheless, the low pricing strategy has been efficiently used by Zappos to counter this challenge. Social factors These factors shape and influence the attitude, perception and opinions among consumers. This social factor has been propagated mostly by the influence of the media. It is an apparent fact that in the contemporary world, social networks have played an integral role in influencing which products that the consumers will purchase. At Zappos, there has been extensive use of the social network, mostly Twitter and Facebook to attract more consumers, mostly the young people in the site.
In this regard, they have been making extensive efforts to create awareness for their brand using social networking sites. Technological factors It is an evident fact that advances in the technological know-how have been key shapers of how business is conducted, gaining increased momentum in recent decades. This is mostly on the convenience and efficiency in passing information from one person to another, for instance, the stakeholders.
With the advance in technological know-how, these stakeholders are able to swiftly pass information amongst themselves. In addition, the efficient passing of information from one party to another in the management system of the organization means a quicker and more effective response to challenges facing the working environment. On the other hand, the consumers are now endowed with an ideal opportunity of doing their purchases any time of the day from the convenience of their homes as a result of the instigation of online marketing.
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