Crocs

Acquisition will provide a good penetration for Ecton Inc. by expanding its market to enter the most difficult ones, hospitals. That is because hospitals are heading to consolidation. Since Ecton team has only one product, this will not satisfy hospitals which prefer to have all of their equipment from one vendor.

Traditionally, the shoe industry was seasonal and based on projections of future trends. Retail stores would need to place orders several months before the shoes would even hit the shelves. As orders were made early in the year, manufacturers would begin production for shipment later in the year. Since inventory supply depended on expected sales, stock could not be quickly replenished as it ran out. The executives at Crocs decided to branch out from the traditional production schedules and develop a lean production model. As sales increased or decreased, Crocs managed to speed up and slow down production throughout the year to quickly replenish depleted inventory. Since the shoes were easily made with the foam mold design, rapid production and order fulfillment came easily for Crocs. This approach attracted the attention of many footwear retailers. With Crocs shoes being made to order, stores could more easily control inventory without worrying about a

The company has recently decided to expand its product line to include a product that is a deviation from our traditional offerings. The expansion presents two potential outcomes. Outcome one has a potential for profit, incremental growth, and additional market share for the company. Outcome two has a potential for financial loss, reputation or brand damage and reduced market share.

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.

According to Wheelen and Hunger an acquisition is a growth strategy that occurs when a company absorbs another (usually smaller) company as an operating subsidiary or division of the acquiring corporation. Acquisitions usually take place with companies of different sizes and they can be hostile or friendly. Acquisitions can also be a good way to grow

Becoming a larger more efficient company with a strengthening competitive position opens up the opportunity for more mergers and acquisitions of competitors, suppliers and/or customers.

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.

Many people like shoes that are comfortable. Here are two examples of shoes that fall under that qualification. Crocs and Skechers are two comfortable shoes that most people adore. But which one is better that’s for you to choose.

An acquisition will typically result in greater growth for an MNC, but it is riskier because it normally requires a larger investment by the company and the decision cannot be easily reversed once the acquisition is made.

The kids segment, which comprised 23% of revenues in 2015, is a natural and maintainable market for Crocs. Crocs’ comfort, easy-on, easy-off style, bright colors make them ideal for kids. Plus, their low price point and expansive size range make them ideal for parents on a budget with fast-growing children.

This speedy production, also made it possible for Crocs to revolutionize the traditional supply chain approach and make its shoes available to a wide range of retailers and consumers.

Easy visibility of the company and recognition of its brand name, due to unparalleled marketing strategies

High demand for quality and reduced lead times led the company to a self-sufficiency approach on streamlining its entire value chain from raw hides to finished shoes unlike its major competitors who only designed and marketed their products without in house manufacturing.

Crocs’ value chain management system allowed it tremendous advantage in meeting customer needs (Business Pundit, 2008). By controlling all aspects along the value chain, Crocs could quickly adjust to customer demand, building additional shoes and fulfilling extra orders within a single selling season (von Briesen, 2009). This allowed retailers to order smaller

Product diversification is a feasible way to obtain growth through new products. The company can use existing product knowledge to develop the brand into new lines to increase exposure and use similar technology to increase synergies. Leveraging off an existing well-known brand to a market that is familiar with the brand will also increase the possibility of success while maintaining lower marketing costs in