Question

How does Zappos use strategic control and reward systems to maintain its
competitive advantage:

What is the main behavioral control mechanism (lever) that Zappos relies on? Why?

Answer 1

Strategic control and reward system of zappos structure, culture and control lead to its strategic success and ultimately resulted in its competitive advantage.
Strategic controls involved 1200 brands, user friendly interface, efficient communication practices.
The business strategy involves cost leadership strategy through process innovation to drive down the cost and focus on economies of scale. Differentiation strategy by providing flexible and mutual understanding among the employees. Product innovation by developing core competencies in the area of R&D Innovation and marketing. The culture of the Zappos revolves around empowering employees following core values and building happiness. Zappos has a flat organisation structure as a part of strategy.

The reward system of zappos is based on informal cultural control system to formal reward system where the employees are rewarded when he applies the core values in his day to day decision making.

The main behavioral control mechanism that zappos relies on
Customers are the life blood of the company and maintaining customer trust and delivering best possible service is of primary importance for the Zappos. The behavioral control mechanism that the Zappos relies on is to provide complete freedom to their employees on dealing with customers so that employees and customers both are happy