Essay about Crocs Case Study

Crocs, Inc. obtained many core competencies throughout the various phases of their supply chain model. Their leading competency apparent in the mid-2000s, was their ability to be efficient and flexible within their supply chain model. This afforded them competitive advantage to revolutionize the footwear supply chain during this time period, in addition to only making injection molded shoes. “Much of this growth had been made possible by highly flexible supply chain which enable the company to build additional product to fulfill new orders quickly within the selling season, allowing it to respond to unexpected high demand.” A second core competency was the ownership of the formulas for the proprietary material resin “croslite”, the primary raw material in their product.

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.

Differentiation was achieved by creating a completely new type of fashionable and functional shoe that was extremely comfortable to wear and fun because of its bright colors. in addition, because of Crocs’ innovative inventory replenishment system, which allowed retailers to order what they needed and get new stock in a couple of weeks, retailers did not need to

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.

Many of the big established shoe brands have seen consolidation and hence they have become bigger and more powerful in terms of competing with the rest.

Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.

The break up and the demise of BSC altered the dynamics of the UK footwear industry leaving Clarks as the largest vertically integrated UK shoe company. (Source: Clarks Web Site)2.3 The shoe market in the UK is dominated by imports, which mirrors the clothing industry. Manufacturing abroad has become the norm with almost all UK shoe companies. This is driven by lower costs, including labour, materials and general manufacturing costs. Clarks recently closed down its last factory in the UK (Ilminster, Somerset), with all manufacturing now being undertaken in Portugal and other low cost countries. (Source: Key Note Report)2.4 Clarks is recognised for making comfortable, durable and well fitting shoes. The product is not regarded as a fashion item. Clarks' target its products at infants/young children through to 15 year olds and adults in the age range 45 - 50. The company offers a wide range of products such as sports, smart, and casual shoes and boots.

sale of Nike’s high-margin products to high-end customers. Regardless of the low cost of the World Shoes, they

2. Analyze ECCO’s global value chain. How well does this configuration match the drivers in the industry?

The athletic shoe industry is made up of companies that produce footwear for athletic use. This is a strong industry and has been around for over 100 years. The athletic shoe industry is one of the fastest growing footwear industries and have top growing sales compared to other footwear industries (NDP Group, 2016). The key players that currently dominate the market are Nike, Adidas, and Puma (Kates & Bolduc, 2013). This paper will use the porter five forces, industry life cycle, and the key players to understand the industry. Over these years the athletic shoe industry has grown into a competitive market.

After sluggish focus and growth in the 1980ies, Nike experienced strong growth in the 1990ies and cemented the position as global recognizable brand. The increased international focus created strains on the supply chain, which was consider inadequate to cater efficiently to the organization and the rapid changes consumer demands . As a consequence of the afore mentioned supply chain problem Nike faced inefficient inventory management, problems in flow of goods and poor demand

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.

Sportsman Shoes has been a leader in the shoe industry for more than thirty years. Sportsman manufactures and sells athletic shoes for all types of sports. The company has pursued a low-cost strategy in order to sustain their success. They sell a limited number of shoe designs and have held costs low through manufacturing efficiency and standardized operations. However, the past five years have been a struggle at Sportsman. The shoe market has seen a rise in the availability of low-cost imported shoes that has threatened Sportsman’s competitive position. As a result, company executives have decided it is time for a strategy shift.

As the brand name of Nike continue to soar, other companies in the industry; learning from the success Nike has experienced, start focusing more on brand development to keep up with the increasing levels of competition. These companies resort to brand maintenance, which has become the main target in this industry due to product differentiation made by Nike. Nike, being market-advantaged, produces an extensive range of products, through which it gains a balanced level of profits. This has influenced rival companies to initiate a new range of products in their businesses too. Previously these companies had high risks of failing in business, if their single products did not appeal to the market. Due to the impact of Nike’s business strategy, the other companies are also enlarging their product range,

If referred to the existing crocs shoes model with same model, the price of the crocs is around RM169.00 to RM269.00. With the new innovate features and shape design, the price should be more than RM269.00 of normal crocs flat shoes, but less than RM300. The price suggestion would be RM299.00. The price is a little bit higher than the existing product, because of the new upgraded which is better and safe to be wear by kids and also adult. With the affordable price and good upgraded shoes, we can attract more of our new targeting market and also existing customer.