Should it grow organically or through acquisition?Organically

Overview: Supply Chain
Highly flexible supply chain enables the company to build additional products to fulfill new order quantities within the selling season
Able to keep up with high demand
Previously unheard of in footwear industry
Developed a model focused on customer needs-when a customer needed more product, they would get it
How Crocs went global
Launched worldwide at entry point in companies life because larger show/apparel companies could knock them off (first-mover competitive advantage)
Other companies could have gone into Europe before Crocs got there if they had infrastructure in Europe
In every country before everyone else, able to ship product into other countries
Known as “originals”, there were knock offs
Partnerships in trade shows in every industry
Went to worldwide events
Crocs had its own sales staff in other countries
2005 started production in China, using large contract manufacturer
Developing Global Supply Chain
Started production in China in early 2005
Raw material sent to Italy for compounding
Then sent to China and Canada
I suggest keeping 3rd party manufacturing in China and other Asian countries (b/c very flexible and able to produce high volume)
Also keep company owned manufacturers in Mexico, Italy and India
Crocs owned molding equipment/molds
Uses country provided labor
In 2006 Crocs took control of compounding activity with state of art compounding facilities in Canada, China, and Mexico (Got rid of bottleneck of having compounding done in Italy which led to supply chain inefficiencies-material had to be sent from Italy to each production site, in the correct amounts and colors)
Also added warehouse operations to each factory, large orders could now be shipped directly from Chinese warehouse
Questions to ask
Should is vertically integrate or grow through product line extension? Vertical integration. Expand business into different points, supplier and distributor. Helps reduce cost and improve efficiency

Should it grow organically or through acquisition?Organically. No need to buy other companies. Already have production companies in other countries.

 

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