Faisal - Operational and process management Essay

Faisal - Operational and process c atomic number 18 - Essay ExampleThe paper also described views on how this social club can better their wrack in the crowded footwear industry and end up being a stronger competitor to its line challenges in its business environment. The paper presented a number of models and theories for both the analysis of the prevalent systems at Crocs, and offered insights on how they can integrate into success and create a more stable company. The paper also pictured different perspectives by providing postulations against vertical integration as strategy to gain competitive advantage. 1.0 Introduction Crocs, Inc. was initiated in the year 2002 in Colorado and is arguably one of todays fastest growing brands and organisations at the world level. The company initially produced footwear for all age categories under the same brand and is this instant sold well in over 100 countries. The brand features a special kind of tractile that is softened by body heat of the individual wearing the shoe, resulting in high degree of comfort. gross revenue for the company jumped 256% in 2006 (Thompson, 2006). There has been much discussion about Crocs success and besides the popularity of its shoes, the major reasons for the extensive growth of the company has been its efficient chain supply management. Crocs, Inc. has shown that being flexible and being foc determinationd on digressing from the conventional norms of the industry, they could achieve more success and profits than their peers (Ashkanasy and Wilderom). This efficiency was the result of their Chief Executive military officers vision of satisfying customers by developing an ultra efficient process of production that would alleviate the company to make and supply at short notice, hence creating a competitive advantage in the industry. The Crocs supply chain has been revolutionary in footwear production but there is need to larn in line with changes in the global industry environment. In the long run, a conventionally view organisation has no future. Alteration in technology, delivery procedures, customer enquires, and legislative policies demand that a company focuses on its core competencies rather than venturing into all possible diversification schemes. 2.0 Industry analysis By the use of the Product Life Cycle (PLC) concept (Waters and Water, 1999), it is quite visible that the footwear industry as a whole is near saturation and this is likely to run for a long time. It is least likely that the demand for footwear will fall significantly but there are possibilities that with the development of cheaper and more long-lived products, the industrys profitability will decline after some time. Using the fol haplessing 5 Forces Model analysis of the global footwear market, the following observations can be made. 2.1 Entry Barriers Entry barriers are engineered to elbow out potential starters from entering a market. These barriers seek to serve the monopoly pow ers of the incumbent organisations in that industry, thereby maintaining monopoly margins. Some known barriers include limit pricing, patents, cost advantages as well as marketing and advertizing among others. This industry appears to offer relatively easy entry for new participants. The advantages of cost are fairly low with quite a large number of players locally and globally. However, it is worth noting that the manufacturers have significantly easy entry to factors of production, particularly raw