Essay Value Chain Management - Crocs Case Study

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Crocs 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 (“Value Chain,” n.d.). The sequence of this chain gives the customer high value for a low cost. Customers ultimately have the power in the value chain (Robbins & Coulter, 2009). While Crocs’ use of the value chain allowed them to create a valuable product and enhance their already valuable product there are aspects of their value …show more content…
However, Crocs revolutionized the traditional shoe market by satisfying their customer’s demand within the same season as they were able to manufacture more shoes as needed (Hoyt & Silverman, 2008). Finally, Crocs saw the value chain through to the end stage by offering their customers a way of giving back by working with a company called Soles4Soles (“Donate Your Crocs,” 2010). Their partnership with this company allows customers to donate their gently used shoes to the less fortunate. Additional value was added to their value chain by increasing variety of the product, improving procurement strategies and minimizing time the product spends in transit, all while sustaining competitive advantage (“Value Chain,” 2010). Crocs went public in 2006 and reported $847 million in revenues in 2007 (von Briesen, 2009). Whether you loved them or hated them, almost everyone knew what they were and where to get them. Crocs used their product visibility to their advantage. A few years after their initial debut, they began making different styles of shoes and various accessories. Crocs shoe line expanded into the production of fashion shoes for all ages and genders, a professional line for those who were on their feet all day and a line for those with medical problems affecting the feet (Hoyt & Silverman, 2008). This expansion satisfied their current customer base by applying variety to their original concept and increased their

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