Crocs Case Study

1386 words 6 pages
Globalization has changed the competitive landscape of all businesses and the footwear industry is no exception. Datamonitor’s profile of the industry estimates that in 2008 the global footwear market was valued at $196.6 billion and projects that figure to grow to 232.1 billion by 2013. How can firms such as CROCS or ECCO succeed in this global market? Datamonitor points out that this industry is highly competitive and that rivalry between firms is strong. A key success factor for the footwear industry is the successful development and management of a profitable supply chain. Different firms take different approaches to this issue. Neilsen points out that several large players such as NIKE and Timberland act more like “branded …show more content…
ECCO has a clear vision which the technology aims to serve however, something CROCS lacks. Both firms are unique in that they do a good deal of manufacturing in-house rather than outsourcing everything like some of the other major players in the industry. For CROCS the aim was to provide timely inventory fulfillment for retailers in-season, previously unheard of in the shoe industry. Hoyt points out that they developed a model that allowed them to respond with speed and flexibility to changing demand in the marketplace. They accomplished this by taking over the production of their croslite material, building their own factories in several key global locations and adding warehousing operations to each factory. Since the supply chain available through outsourcing did not provide the model they needed they simply built their own! They built capacity at a rapid pace to keep up with explosive demand and grew revenues in a dramatic fashion along the way. For ECCO, having production in-house is about producing the quality ECCO stands for. They add value in each step of the process, from “cow to shoe” as the company likes to say (Nielson). They own and operate tanneries to ensure their leather is of the best possible quality. Like CROCS, they could not find a supplier to meet their needs so they met them on their own. ECCO still finds ways to take advantage of lower labor costs around the world and has

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