Topic > Crocs Value Chain - 1017

Crocs Value ChainCrocs has entered the shoe market with a new style of brightly colored footwear. Crocs has designed and produced footwear for all ages. The use of an innovative value chain has supported the company's phenomenal growth. This paper will discuss the company's leadership, flexible supply chain, and product diversification and how these aspects contribute to the company's overall value chain. The BeginningCrocs began in 2002 with the introduction of a revolutionary boat shoe. The shoes became successful very quickly, and the company founders decided to work with an old friend, Ronald Snyder, who had experience in manufacturing, buying companies, and merging purchased companies (Crocs: Revolutionizing, 2007). One of Snyder's initial decisions was to acquire Canadian shoe manufacturer Finproject NA. Completing this purchase allowed Crocs to control the shoes' proprietary material. By owning the raw material to produce the shoes, Crocs controlled the initial stage of the value chain. Once Crocs had the formula for the shoes' resin, the company used it to select contract manufacturers to make the shoes. Crocs now produced shoes at the original Canadian plant and a Chinese manufacturing plant. Once the factory opened in China, Crocs entered the overseas market. After entering Asian and Chinese markets, Crocs expanded its capacity with new contract manufacturers in Florida, Mexico, and Italy (Crocs: Revolutionizing, 2007). The addition of these sites provided a global supply chain that reduced costs and provided value to consumers (Marks, 2008). A new vision of supply The creative supply chain used by Crocs meant that footwear manufacturers had to... paper......ears, the Crocs model did not prove as successful. Crocs changed strategy to accommodate lower product volumes (Gonzales, 2009). Crocs should evaluate its organizational processes. Some of the processes once used by Crocs are no longer as effective. Management must work towards better forecasting of demand, to collaborate with members of the value chain and to better evaluate performance (Robbins and Coulter, 2009). By integrating all three of these elements, Crocs will adapt the value chain to support continued success. Finally, Crocs must have sufficient foresight to sustain market changes and use advance control to prevent future problems. The leadership, flexible supply chain, and diversification discussed here can still be employed for long-term success as long as Crocs is willing to continually evaluate the current value chain.