Crocs A Value Chain of Success Essay - 1818 Words

Introduction In 1913 Henry Ford designed and implemented a new strategy to meet the needs of his customers by revolutionizing the automotive industry and manufacturing process. By September 1927, Ford had transformed all steps in the manufacturing process from refining raw materials to final assembly of the automobile which significantly reduced assembly time per vehicle, lowering costs, while increasing productivity (AAM, 2003). Managing and innovating productivity while understanding the business core competencies is just one way operations management ensures a competitive and differentiation advantage. Since Henry Ford’s innovative processes, many business strategy models have been designed to give customers†¦show more content†¦Therefore, buyers would place their pre-orders early in the year and manufactures’ would produce a finite quantity of a product prior to the seasonal sales. Once placed, there was little ability to add or change orders during the sea son. The limitations of this strategy had left retailers and consumers with little value and lost opportunities. As such, Croc’s new leadership needed a new approach to this dilemma. The value chain is a useful tool for strategic analysis of a defined sequence of activities that exist in almost any organization. Furthermore, the purpose of a value chain strategy is to identify those business activities mismatches and to optimize these linked-activities to better understand the organizations competitive advantages (Robbins Coulter, 2012). There are various models of a value chain and therefore it is mostly tailored to the specific strategies of organizations processes. Managing these strategies falls upon the value chain management personal. Whereby taking a multi-dimensional look at the various activities which go into producing a final product or service and developing new value enhancing processes within the chain (Robbins Coulter, 2012). The Value of Change A production and supply chain model can take on various designs as needed to address organizational requirements. The primary value chain asShow MoreRelatedEssay Value Chain Management - Crocs Case Study1257 Words   |  6 PagesCrocs splashed onto the scene in 2002 with brightly colored plastic shoes that the whole family could wear. From preschoolers to doctors, these shoes appealed to a vast array of consumers. The reason for Crocs’ success can be attributed to their value chain development. Value chains exist to enhance value created at every step of the manufacturing process, from raw materials to final product disposal or reuse (â€Å"Value Chain,† n.d.). The sequence of this chain gives the customer high value for a lowRead MoreCrocs Case Study1443 Words   |  6 PagesCrocs made a splash in 2003 when they introduced their funny looking, brightly colored, plastic clogs that the whole family could wear (Hoyt Silverman, 2008). By 2007, the c ompany reported $847 million in revenues (von Briesen, 2009). From preschoolers to doctors, these shoes appealed to a vast array of consumers. The reason for Crocs’ success over the past few years can be attributed to their value chain strategy in which customers ultimately had the power (Robbins Coulter, 2009). Value chainsRead MoreEssay about Value Chain at Crocs, Inc.977 Words   |  4 PagesThe first impression one might have about Crocs products are that they are basically plastic looking shoes that are comfortable and readily available. Customers familiar with this product boast, like on the company website, about the company’s proprietary closed-cell resin, Crosliteâ„ ¢, a technology that gives each pair of shoes the soft, comfortable, lightweight, non-marking and odor-resistant qualities(Company.crocs.com, 2011). There are also various comments about how the material does notRead MoreCrocs Case Study Essay1060 Words   |  5 PagesCrocs 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 inRead MoreEssay about Crocs Case Study1385 Words   |  6 Pagesmarket was valued at $196.6 billion and projects that figure to grow to 232.1 billion by 2013. How can firms such as CROCS or ECCO succeed in this global market? Datamonitor points out that this industry is highly competitive and that rivalry between firms is strong. A key success factor for the footwear industry is the successful development and management of a profitable supply chain. Different firms take different approaches to this issue. Neilsen points out that several large players such asRead MoreWhat Are Crocs Core Competencies?1448 Words   |  6 PagesMy fellow students and I were asked to answer four questions related to the Stanford Graduate School of Business Case: GS-57. The Case title â€Å"CROCS (A): REVOLUTIONIZING AN INDUSTRY’S SUPPLY CHAIN MODEL FOR COMPETITIVE ADVANTAGE† presents how the Crocs Company changed the footwear industry. The following is the questions and answers relative to this assignment. 1. What are Croc’s core competencies? Investopedia defines core competencies as â€Å"the main strengths or strategic advantages of a businessRead MoreCrocs Case Study1351 Words   |  6 Pages The history of Crocs can be roughly summed up as three friends that pursued an idea and it worked. Crocs established in 2002 after three friends took a fishing trip to the Caribbean. Lyndon â€Å"Duke† Hanson, Scott Seamans and George Boedecker, were so impressed with the slip-resistant foam shoes, they decided to sell the Canadian produced clog shoes manufactured by Finproject NA out of a leased warehouse in Florida. The friends choose the name Croc to â€Å"capture the amphibious nature of the product.†Read MoreCrocs Organizational Structure1788 Words   |  8 PagesRunning Head: Crocs Crocs Jess R. Vasquez Colorado State University – Global Campus ORG 500 Foundations of Effective Management Jama Bradley, Ph.D. 21 November 2009 Abstract Crocs Inc., was founded in 2002 and immediately realized success. The company had a great idea and moved quickly to capitalize upon it. Early in 2006 the company entered into its IPO, it too was a huge success. â€Å"At the height of the real estate market, in 2006, the company sold shares to the public, raising more than $200Read MoreCrocs Shoes Itself in Global Supply Chain2868 Words   |  12 PagesBy: Hanan Alzayied KMBS student-Kuwait-July2012 Crocs Shoes itself in Global Supply Chain Abstract: Crocs, Inc. is a U.S. based shoe designer, manufacturer, and retailer that launched its business in 2002 selling Crocsâ„ ¢ brand casual plastic clogs with straps in a variety of solid, bright colors, Crocsâ„ ¢ introduced an innovative shoe made of a revolutionary material called Crosliteâ„ ¢ technology which held unique characteristics that allowed it to perform on both land and in water. TheRead MoreCrocs Case1955 Words   |  8 PagesQuestion 1: One of Crocs core competencies is a highly responsive supply chain. How does this give Crocs the advantage over its competitors? And, describe the three phase supply chain development strategy that Crocs used to achieve their flexible supply chain. To satisfy its mission and comply with growing consumer demands, Crocs has built a strategic business concept around maintaining flexibility to offer retailers timely fulfillment while capitalizing on the efficiencies and cost advantages.