Vans Case Study

1416 Words Feb 17th, 2013 6 Pages
Vans is considered as the largest and most profitable show manufacturer in the world. Vans’s success relies on the network structure that Vans founder and CEO Philip Knight created, allowing the company to produce and market shoes. Basically, the virtual organizational architecture that would allow Vans to focus on some functions such as design and leave others like manufacturing to keep costs low and to give the company greater flexibility. By far, the largest function of Vans Oregon is the design function responsible for pioneering innovations in shoe design while the rest of the major functions are scattered in Southeast Asian suppliers like China and Malaysia. Strategic alliances are important aspects of Vans production particularly …show more content…
Possibility of new entrants, nonetheless, is not significantly high and established companies could easily venture into an athletic footwear line. These companies, however, might be trendy but must be guarded with the demands of the athlete. Vans is an organisation that had long-term contracts with professional and collegiate athletes then running expensive television and magazine advertisements. Aside from contracting agreement with individual teams, Vans settles agreements with the entire sports league which enables the company to enter and market itself in growing industries using existing industrial leaders and popular sports.
Going back to CSR, Vans had faced dilemmas of unethical treatment of its labor force hence in the manufacturing aspect whereby sweatshops make most of the production units. Virtual organizations adhere into environment uncertainties that require buffering, boundary spanning, strategic alliances and co-opting, and Vans understands this very well. However, various unethical criticisms necessitated Knight to rethink its organization. Heal (2008, p. 168) points out the responsibilities of a Western company outsourcing to a poor country. Frenkel (2001) termed the process as the international contracting wherein a buyer-driven commodity chain is apparent. In such an arrangement, the lead firm, in our case Vans, is a brand name merchandiser in a developed country. Vans orchestrates the

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