Value Chain Management - Crocs Case Study Essay

Value Chain Management - Crocs Case Study Essay

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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 chain that could have been modified to promote long term success.
Crocs’ business model and value chain, centered on the customer, made the company successful for a multitude of reasons. First, the design of Crocs is concentrated on comfort and durability. The croslite material used to make the shoes is valuable to consumers because it is lightweight and molds to the shape of the wearer’s foot. Also, this croslite material makes Crocs easy to maintain and resists bacteria and fungus (Hoyt & Silverman, 2008). Secondly, the company has been able to produce this product for a reasonable price. The internal collaborative efforts of the company allow consumers to obtain a high quality product for a low price. Additionally, Crocs has made their product ubiquitous and therefore easily attainable. From the beginning, Crocs’ top level managers knew they had to “launch the world” in order to obtain sustainability (Hoyt & Silverman, 2008). This company recognizes the importance of catering to their customers...


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...Competitive Advantage. Stanford Graduate School of Business, GS-57.
Klein, S., Renger, T., Krishna, G., Friesl, M., Kim, P., Harvey, T., & Rizzo, P. (2009).
Innovative Supply Chain Management Strategy Leads to Explosive Growth. Slideboom. Retrieved March 30, 2011, from http://www.slideboom.com/presentations/26324/Crocs-Presentation_2
Robbins, S. P., & Coulter, M. (2009). Management (10th ed., pp. 430-436). Upper Saddle River, NJ: Prentice Hall.
Value Chain. (n.d.). Danisco. Retrieved March 30, 2011, from
http://www.danisco.com/wps/wcm/connect/www/corporate/sustainability/value_chain/
Value Chain. (2010). Epiq. Retrieved March 30, 2011, from http://www.epiqtech.com/supply_chain-Value-Chain.htm
von Briesen, J. (2009). The Strategic Moves of Crocs, Inc. Blue Ocean Strategy. Retrieved
March 30, 2011, from http://www.blueoceanstrategy.com/abo/Links/Crocs.pdf

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