Crocs Case Study

1052 Words3 Pages
bulb-icon

Recommended: Value chain and cost management

Crocs emerged in 2003, quickly growing in both scope and profitability as a result of its unique value chain management system. Foregoing traditional models, Crocs quickly acquired and established a world-wide network of supply, manufacturing, production, and delivery systems. This gave Crocs the ability to minimize costs, maximize efficiency, and deliver the best value to their customers. Within this customer-focused framework, Crocs created a unique global value management system, superior in execution and focus when compared with traditional supply chain systems.

Traditional Supply Chain Management

Conventional supply chain management is limited in focus. It is internally concentrated on the flow of raw materials through an organization (Robbins & Coulter, 2009). In contrast, value change management focuses on both the flow of incoming materials as well as the outgoing products. In particular, it seeks “manage the sequence of activities and information along the entire value chain” (Robbins & Coulter, 2009, p. 430). In this way, it can be thought of as more customer focused as it aims to best meet the needs of its customers.

Traditional shoe manufacturers have tended to use an inflexible supply chain management model (Hoyd & Silverman, 2008). In this model, retailers submit bulk orders several months in advance of a selling season and manufacturers fill these orders exactly as submitted (Hoyd & Silverman, 2008). This process is inefficient because retailers must anticipate how many shoes they will sell before the selling season starts and are unable to modify orders according to customer needs during the season. Such a system leads to missed revenue opportunities, waste and ultimately reduced profits as retailers e...

... middle of paper ...

...es in revenue from ugly shoes. Retrieved from

http://www.businesspundit.com/how-crocs-rakes-in-revenues-with-a-single-ugly-shoe/

Plenart, G. (2011). Value change management. Encyclopedia of Business, 2nd Edition.

Retrieved from http://www.referenceforbusiness.com/management/Tr-Z/Value-Chain-Management.html

Handfield, R. (2011). What is supply chain management? Retrieved from

http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management

Hoyt, D. & Silverman, A. (2008). Crocs: Revolutionizing an industry’s supply chain

model for competitive advantage. Stanford Graduate School of Business, GS-57.

Robbins, S.P. & Coulter, M. (2009). Management. Upper Saddle River, NJ: Pearson

Prentice Hall.

Von Briesen, J. (2009). The strategic move of Crocs, Inc. Frontier Strategy, LLC.

Retrieved from http://www.blueoceanstrategy.com/abo/Links/Crocs.pdf

Show More
Related

  • Home Depot Supply Chain Management Case Study

    883 Words  | 2 Pages

    Understanding the changes in the market and the growth of e-commerce prompted the organization to invest heavily in its supply chain management forecasting and management system. The development of a network of distribution centers and Direct Fulfillment Centers to position the company to capitalize on the growing e-commerce market indicate a strong understanding of the need to adapt to changing market forces. The company spent over $300 million on new distribution center facilities in 2014 alone, and continues to expand to maintain efficiency in product movement (Cassidy,

    Read More

  • Business Analysis of Two Airlines

    1354 Words  | 3 Pages

    In a high competitive world market and with the increasing rational buyers a company can only win by creating and delivering the best customer value than the others competitors do. To succeed, a company needs to use the concepts of value chain.

    Read More

  • Value Chain Analysis: Strategic Analysis Of Paypal

    1344 Words  | 3 Pages

    Value webs are concerned with what goes outside of the firm, and how well the firm coordinates direct, and direct suppliers, and delivery firms, and customers. By working with other firms, and using information systems, an advantage can be gained, by developing industry-wide standards for exchanging information, which eventually forces all market participants to subscribe to similar standards. Information exchange becomes more fluid, which positively influences efficiency, this in turn, makes product substitution unlikely. Such efforts also increase barriers to entry, which discourages new entrants. The internet has made possible to create highly synchronized value webs that integrate different business processes among the whole industry. These value webs are highly responsive and adaptable to environmental changes in supply and demand, as relationships can be bundled or unbundled, depending on the market conditions. Quick decisions can be made in order to optimize the value web relationship in order to deliver the required product or service in the right place and

    Read More

  • Value Chain at Crocs, Inc.

    967 Words  | 2 Pages

    Hoyt, D., & Silverman, A. (2008). Crocs: Revolutionizing an industry’s supply chain model for competitive advantage. Palo Alto, CA: Stanford Graduate School of Business.

    Read More

  • IBM And IBM Value Chain Analysis: IBM

    984 Words  | 2 Pages

    The aim of the value chain structure is to maximize the value creation while minimizing costs. Value Chain Analysis is a useful tool for working out how you can create the greatest possible value for your customers. Value chain analysis relies on the rudimentary economic principle of competitive advantage -companies are best served by operating in divisions where they have a relative prolific benefit compared to their competitors. Concomitantly, companies should ask themselves where they can deliver the paramount value to their customer. To conduct a value chain analysis, the company begins by identifying each part of its production process and recognizing where steps can be purged or enhancements can be made. These improvements can result

    Read More

  • Fashion Marketing

    1673 Words  | 4 Pages

    Dicken (1998) points out that the textiles and clothing industries were the first manufacturing industries to take on a global dimension and are the most widely dispersed in the developing world. As a result of these changes retailers moved towards global supply chains for their textiles and apparel products in order to acquire cost and lead time benefits thus meeting their fast moving and demanding consumer needs. “However when a well-selling stock ‘item’ needs to replenish in the middle of the season global sourcing is not very efficient (Bruce & Daly, 2007).” Even with the internet and new communication systems things are still difficult to manage at a distance. And there are some hidden costs; for example lost sales, as a result of a late or incomplete delivery. In some cases it might be better to source locally.

    Read More

  • Somerset Case Analysis

    834 Words  | 2 Pages

    The furniture company Somerset needs to retain its customer service record and remedy any of its global supply chain issues before it has an adverse effect on the brand and start losing customers. With a frequent change in the product catalog, keeping an excessive inventory will cut its profit and some of the product may become obsolete even before the furniture hits the retail outlet stores. In order to achieve profit and success, business employee many strategies and the supply chain strategy are one of the operational management techniques that use analytical decision making process to achieve the company goals and provide tools to effectively compete in the market (Taylor and Russell, 2014).

    Read More

  • Under Armour

    1134 Words  | 3 Pages

    Under Armour’s job of the supply chain is to deliver to this model: ( speed + control + predictability ) x innovation = successful growth. This mathematic equation may not be 100 percent mathematically correct however it does make common sense nonetheless. According to VP of Global Merchandise & Sales Planning Bill Nienburg, the most difficult challenge is how you combine speed with control and predictability is however the key point. A challenge apparel companies have is the different seasons, therefore making it difficult to always plan in detailed each supply and the planning process, from Spring/Summer to Fall/Winter, however they are planning for five such seasons. Nienburg also made a remarkable 4D Collaboration graphic, having data in its center. This is because internal nor external is able to fully work without accurate, timely and granular dad. Therefore that is where Under Armour started from, first by researching all about data. Involving master data management, data governance, etc., along with tools to leverage the data. This model is shown

    Read More

  • Market Segmentation In Bahrain Case Study

    1209 Words  | 3 Pages

    Offering the ideal services to the consumers guarantees the corporation customers loyalty as well as satisfactions. Along with customers’ devotion, the supply of quality services additionally draws in other clients that are going to furthermore want to purchase from the firm. Through this, the organization will probably generate more income compared to any other shoe selling organization in the entire nation of

    Read More

  • Pampers Case Study

    925 Words  | 2 Pages

    Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,

    Read More

  • Why Crocs Are More Important Than Running Shoes

    829 Words  | 2 Pages

    From running marathons to getting the mail and everything in between crocs are the only shoe you will ever need. You might say running marathons, no way, but yes it has been done. Benjamin Pachev finished 16th in a half marathon wearing crocs. Not only did he wear crocs during the race but he also trained in crocs. Benjamin and his dad chose crocs because they were a lot less expensive than running shoes and much more durable.

    Read More

  • Value Chain Analysis: A Strategic Analysis Of Unilever

    2016 Words  | 5 Pages

    Value chain analyses a firm 's internal activities such as planning, production, and development, packaging and distribution so as to create value for clients. The function of the value chain is to identify the sources for cost reduction along with quality improvement. It means value chain is used to identify the strong and weak points, positive and negative points, the scope of improvement; in a nutshell, the advantages and disadvantages of the activities taking place in the system. The value chain is also called as a strategic analysis tool and it is a well-known concept in business management industry.

    Read More

  • Introduction and Overview of Infosys

    1152 Words  | 3 Pages

    The organization traditionally concentrated on the lower end of IT value chain from 2000-2004, this shifted to higher value IT services in order to obtain the competitive advantage. Value chain offers organizations ways to improve value to its customers; it can also be defined as generic strategies of differentiation and cost leadership (O’Connell, 2010).

    Read More

  • Dynax Value Chain Analysis Case

    1190 Words  | 3 Pages

    For Dynax to implement an effective value chain analysis, they must identify the value-chain activities and decide how they are going to develop a competitive edge. The primary activities in Dynax’s value chain include the design process, acquisition of raw materials, manufacturing processes, marketing and sales, and customer service. The organization must determine what activities produce the most value and what activities are not contributing any value to external parties. In addition, Dynax must decide if they want to pursue a differentiation advantage or cost advantage. Differentiation advantage will allow the organization to create more superior products, while cost advantage focuses on reducing the costs in any activity of the chain. Moreover, Dynax must study the linkage of value activities and understand that a weakness in one activity will most likely affect the next activity in the chain. Dynax can minimize these occurrences by dedicating more attention and detail to higher valued activities. Lastly, Dynax can analyze and interpret other companies and economies that have previously implemented a value chain analysis through benchmarking techniques to gain a competitive advantage. They can ultimately gather insightful information on the secrets and

    Read More

  • Role Of Accounting Information System

    1065 Words  | 3 Pages

    By adopting the value chain into a manufacturing company, it will gain efficiency, effectiveness, reduce the product cost and improve continuously. For example, Toyota has implemented Toyota Product System (TPS) integrated information system with the business process which allowed the company to be more efficiency, effectiveness and reduce inventory cost. (Toyota

    Read More

More about Crocs Case Study

Open Document