Case Study Of Crocs: Revolutionizing An Industry's Supply Chain Model

Unlike its competitors, Crocs had a highly responsive and flexible supply chain. Owing to the Crocs executives’ experience in electronics industry, they were accustomed to producing what the customer needed and when it was needed. Thus the business model was focussed on customer needs and responded promptly to changes in demand and trends. The retailers of shoes, therefore, had neither the pressure to forecast exact demand nor the obligation to order bulk orders several months before the selling season.

New Balance was founded by William J. Riley in 1906 in the city of Boston. Riley started by making arch supports for customers who had to spend all day on their feet. Over time the building of arch supports led to the creation of his first running shoe in 1925. As part of a local running club, Riley capitalized on an opportunity to improve running shoes of the time and his designs became widely popular. His new running shoes became so popular that by the 1940’s that production spread from running to many other sports. Then the expansion of the manufacturing significantly increased as he realized a need to running shoes with more selection for wider feet, and

The Athletic shoe industry had its start in 1892 when U.S Rubber company invented Keds and by

With revenue from Crocs shoe sales reaching to $680 million in 2007, it is clear that the company has developed a successful strategy. Not all of the success can be contributed to the design of the product. Although their products were in high demand, there are more underlying factors that have paved the way for Crocs to be competitive in the shoe market. Crocs’ supply chain design and use of vertical integration revolutionized speed and quality of order fulfillment.

Strategic Formulation and Implementation came into place. Relationships were the core of their export business. International partnerships gave them presence in North and South America, Europe and Asia. Working through distributors, made it easier to sell their products. These distributors knew every little aspect of their clients, and made it easier to find potential clients than Cretor could. These made them have both bargaining power of suppliers and buyers, in that they were still one of the very few making these machines, and throughout these distributors, they had specific knowledge of their current and potential clients overseas. Cretors also kept personal relationships. They had good friends internationally. There were some businesses that started small, which had a more personal relationship with them. In order to assure that their machines stayed in good conditions, they currently have approved service centers around the world. These centers would act as a link between Cretors and their customers. A service representative was at the center, who would fix the problem almost the first time, making them look smart and professional, and also making very cheap centers to maintain. Having a single distributor in each part of the world (Spain, Italy, Germany) These representatives had to drive 200-300 miles, and you definitely

When implementing project 1, you face technical and market risk. How would you assess the risks embedded in Project 1?

Be more aggressive in their marketing strategy. One of the reasons why Crocs got so ahead because they were very aggressive in terms of sales and marketing strategies. They need to target more overseas clients, as North America is already dominated by Crocs. They should also work harder at distributing to more retail stores in North America.

1. Which of the comparable companies appears to be a good match to Crocs at the time of

An effective supply chain is the key to creating business value, and with expansion on the horizon. Good planning and willingness to adapt to changes are key to maximizing our results. In order to do this we have come up with a plan that will make Lady Americana mattresses a household name in our target expansion markets. In the state of Oklahoma, Lady Americana has already become a brand that has a bed in almost every home. The current systems in place are effective for todays operations, below are some challenges and recommendations to improve upon this to create an effective supply chain, that will grow with you as your business does.

Crocs, Inc. is a U.S. based shoe designer, manufacturer, and retailer that launched its business in 2002 selling Crocs™ brand casual plastic clogs with straps in a variety of solid, bright colors, Crocs™ introduced an innovative shoe made of a revolutionary material called Croslite™ technology which held unique characteristics that allowed it to perform on both land and in water. The company created its own fashion phenomenon and was given the name Crocs™ after the multi-environment, amphibious nature of Crocodiles in which they add fun by designing a crocodile face logo to build a light-hearted.

Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also

Richard Dana Associates (RDA) was brought in by the owners of a family-owned business with complex relationship issues at a time preceding an anticipated leadership transition. Following individual and group coaching sessions, RDA was able to help the leadership separate personal issues, and codify practices through formal policies to allow the leadership group to focus on business issues without personal complications. At the end of RDA's engagement, the client was well-positioned to begin developing a transition plan.

Every year, about 900 million pieces of Nike footwear, apparel and equipment arrive at the right destination on time. The complex process involves more than 50 distribution centers, a network of thousands of accounts, and more than 100,000 retail stores around the world.

Crocs’ success is partially due to creating an effective value chain management system (Hoyd & Silverman, 2008). Value chain management is a dynamic process focusing on maximizing effectiveness along the entire sequence of operational activities (Handfield, 2011). In accomplishing this, Crocs refined its production, manufacturing, and delivery systems in many ways. Specifically, Crocs bought their resin supplier and engaged in technologically novel processes to create proprietary croslite® resins that are inexpensive to produce, odorless, and available in a variety of colors (Business Pundit, 2008). Likewise, they acquired and created compounding facilities to reduce supply chain inefficiencies and better control manufacturing of their product. Finally, Crocs improved their inventory processes by adding warehouse operations to each factory (Hoyd & Silverman, 2008).

Many of us know Nike for the clever maketing campaigns, celebrity athelets, "swoosh" logo, and "Just Do It!" slogan. In 1963 the world's largest athletic shoe company was founded by Philip Kight and Bill Bowerman for $500 apiece and a handshake, and today has over $9 billion in revenues.