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"They nailed down their supply chain. Crocs purchased the supplier of the resin for the shoes and the factories that make Crocs. They also signed contracts with
by TrevorJ 18y ago
"They nailed down their supply chain. Crocs purchased the supplier of the resin for the shoes and the factories that make Crocs. They also signed contracts with key retailers."
How does this ensure success? Sure, it ensures that they have complete control over their ability to deliver a product, but that has nothing to do with being able to SELL it.
Not criticizing, just curious.
- deleted 18y ago[deleted]
- pchristensen 18y agoIt's a necessary but not sufficient condition. It meant that when Crocs became a market hit, their suppliers couldn't raise prices on them. It meant they could capture all the value that their popularity created.
- hugh 18y agoWell it's not a necessary condition either. Plenty of companies, and indeed plenty of shoe companies, are successful without purchasing their entire supply chain down to the plastic-factory level.
- pchristensen 18y agoTrue. But it might be necessary for them to get enough capital and resources to survive after the fad wears off.
- Goladus 18y agoThat quote isn't the whole point of the article. The key is that their main competitive advantage is the material itself.
- alaskamiller 18y agoOne key to Crocs' success has been their materials. I think they were also keenly aware of how easy their product could be copied and/or have a company clone their product especially in this post-China production world; they're just mold slippers after all. By vertically integrating their entire logistics chain they're ensuring one form of competitive advantage. Those cheap knockoffs at Target or WalMart looks the same but just quite isn't right because they don't have access to the materials manufacturer. The same strategy wouldn't work for other companies. Apple for example source so many parts it's not feasible for them to own the entire logistics chain.