Crocs Case Study

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Crocs 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 company 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 chains exist to create value for the customer at each step of the product’s life, from raw materials to marketing to final product disposal or reuse (“Value Chain,” n.d.). The sequence of this chain is intended to create a high value product for the …show more content…
Additionally, their initial marketing tactics gave them an opportunity to identify customer needs (“The Value Chain,” 2010). When the company first started out, Crocs employees would personally interact with customers at trade shows and retail stores to educate customers and also create a buzz about their product (Hoyt & Silverman, 2008). Furthermore, the most significant part of Crocs’ value chain is their success in making their product ubiquitous and easily attainable. Most shoe companies produce a limited amount of inventory per season and when the inventory is depleted, customers are out of luck until the next season. However, Crocs revolutionized the traditional shoe market with their ability to manufacture more shoes as needed. This flexibility exceeded customers’ needs because the company was able to supply an increase in demand within the same season (Hoyt & Silverman, 2008). Finally, Crocs saw the value chain through to the end stage by offering their customers a way of giving back by recycling Crocs they no longer used. Crocs’ partnership with a company called Soles4Souls allows customers to donate their gently used shoes to the less fortunate (“Donate Your Crocs,” 2010). Crocs’ sequence of “organizational work activities” added value at each step (Robbins & Coulter, 2009, p. 431). Additional value was added to their value chain by increasing variety of the product (“Value Chain,” 2010). Whether you loved

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