Essay Example on How Croc's exploit these competencies in the Future









How Croc's exploit these competencies in the future by the following alternative a Further integration into materials Because Crocs uses the material like Crostlite which makes their shoes comfortable easy to clean and odor resistance With this unique and essential material will help Crocs still be the leader in the market Even though nowadays we have seen various counterfeit products that imitate Crocs shoes the unique material will help Crocs a competitive advantage with their better quality and sustainability b Growth by acquisition By owning manufacturing operation adding company owned warehouses to each factory will help Crocs support their supply chain model molded around satisfying customer needs with flexibility and in controlled management However Crocs should prepare and be aware of some challenges caused by different culture from the various acquisition of diverse countries In addition the growing of acquisition can help Crocs to expand their product line to be special in the specific area for each country 

By using local manufacturing warehousing and distribution this new product line will not affect the cost of transportation For instance the limited Gator Jibbitz that release only in Florida which makes the product to be more valuable c Growth by product extension By integrating highly flexibility supply chain model of Crocs and applying a pull system place smaller pre booked orders and order more when they saw how well the products sold will help the company increase product extension that will not impact on retailers This process will also help retailers get rid of unloading excess inventory However beyond Croslite modeled shoes the other material such as leather canvas or suede that make the production more complicated these productions still need to be agility and adaptability To what degree do each of the alternatives listed in Question 2 fit the company's core competencies To what degree do they defocus the company away from their core competencies The company's core competencies revolve around the idea of less waste low cost and quick turnaround These are the foundations that the company prides themselves on and try to hold true Furthering their integration into materials for their shoes causes difficulties within their core competency of both low cost and quick response time The use of various materials cause a bottleneck in the show making process forcing workers and machines to assemble the show with varying materials The process is no longer as quick as it once was when they solely used the croslite and their expansion on materials have caused an increase in the supply cost as well If the company wants to uphold their quality standards acquiring good quality leathers and suedes cost a hefty amount 

The addition of more manufacturing operations actually add to the company's core competencies in a positive way Crocs faced some barriers with lack of trade agreements in certain nations Adding manufacturing warehouses and distribution centers will lessen the tariffs and duties paid in transportation The additions will hopefully negate the pace of the differing materials If there are more warehouses the delivery of those specific shoes will be faster than a regular route from a further location Their current flexible supply chain methods with the small pre booked orders causes a different set of dilemmas Where the other two have direct relationships with time the problem of inventory amount faces a different type of situation Where their current plans adds in them keeping low inventory and low excess materials the potential for low or no inventory will hurt their sales if demand increases and they don't have the materials on hand to produce them The lack of inventory is a benefit because of the lack of waste and the minimal management however having more inventory means having more for sale and servicing high demand Analyze Croc s current supply chain Crocs currently operates with high profit margins using localized production and highly efficient international contract manufacturers Raw materials are processed and products are compounded manufactured and distributed in house

Currently Crocs remains a unique product provider with high brand awareness strong supplier to retailer relationships and operates through a wide variety of sales channels Its ability to rely less so on predictive analytics and forecasting and act as a reactive supply chain allows the company to sustain its competitive advantages As of now Crocs has only several weaknesses The company solely relies on footwear sales and faces direct competition from brands like Nike Adidas and Reebok Though the production materials are proprietary the threat of substitution remains high due to generic knockoffs With the rapid expansion and exponential sales growth Crocs faces potential capacity constraints in emerging markets which may have an adverse effect on quality and service Recommendations on how they should improve their supply chain tariff problems Maintain cost advantages Focus on commodity branding to differentiate from knock offs Find cost effective raw materials suppliers to aid in keeping prices competitive Refocus on the unique and successful design by implementing product development in emerging markets Internally align the supply chain system To facilitate integration between in house and external systems balance some vertical and horizontal integration processes Seek out machinery equipment and raw pellets suppliers that are in close proximity to manufacturing plants Keep compounding and molding under direct control Consider outsourcing some warehousing to reduce labor costs Consider a consolidation than an expansion in order to become more agile and lean again Reduce and discontinue contracts with low performance stores

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