Additionally, Crocs holds intellectual property, acquired through Foam Creations, for the compounding of their closed cell resin, which makes their product uniquely non-marking and odor free. Establishing a larger scale operation increases the barrier to entry. They closely protect the tooling used to mold their shoes, even maintaining ownership and control of the molds used by their manufacturing partners to minimize the risk of knock offs entering the market.
Low Intensity of Existing Rivalry: Moderate Threat of New Competitors: Crocs is primarily focused on Product Leadership, which is apparent through their focus on marketing, brand awareness and their ability to deliver product to their customers within a relatively short timeframe, Crocs case analysis on specific product demand successful sell through to consumers.
Assembly efforts were relatively minimal, entailing of gluing a couple pieces and snapping on one or two straps. Though any consumer product company cannot forget Customers, Customer Intimacy is probably the area of least strategic focus within Crocs.
The business grew rapidly, through both organic and acquisitive efforts, going public in early To maintain their competitive advantage, Crocs needs to figure out how to continue to deliver their products to customers under their highly successful delivery model.
As they expand into new product lines, they will need to carefully manage their raw material requirements and vendor development efforts to maintain minimal supplier leverage.
While Crocs began as simply a distributor of a novel product invented and manufactured by another firm, within two years of their inception, they began a journey to develop a supply chain model unique within the shoe industry.
Crocs uses multiple distribution partners, which minimizes leverage of any single supplier. Consumer trends have a significant impact on Crocs. Crocs continued to tweak its operations, including strategic partnerships and wholly-owned facilities, as sales grew globally through marketing efforts and acquisitions.
They stay close to their customers to the extent required to be responsive to changes in demand, but given the number of customers and breadth of retailers they sell to, they did not have a high concentration of sales within any one customer or customer group where they would benefit from a sharper focus in this area to the detriment of Product Leadership and Operational Excellence.
Crocs differentiates itself from other shoes via the closed cell resin used to make their shoes that is colorful, non-marking, non-skid, comfortable and odor free.
The size of the industry and lack of dominant global players within the specific product categories Crocs plays in benefits the company. Crocs Management has to determine how to continue their successful operating model with a more complex product line.
The availability of substitutes increases the importance of product positioning, brand recognition and product differentiation for Crocs. While their 1 focus is clearly Product Leadership, Crocs has also focused on Operational Excellence, which is critical to their ability to be responsive sudden changes in customer demand.
Crocs are not inexpensive relative to many of their substitutes, so brand awareness and loyalty is critical to the company.Crocs Case Analysis - Download as Word Doc .doc), PDF File .pdf), Text File .txt) or read online.
Paper regarding the business model of the company crocs and their accessibility into the market place. Crocs Case - Correct Answers 1.
What are Crocs core competencies?
• A vertically integrated supply chain • Highly flexible supply chain allows for fulfilment in-season and allows Crocs to be more responsive to fluctuations in demand.
• Crostlitematerial was unique and important to Crocs because it gave the company a competitive advantage. Crocs uses multiple distribution partners, which minimizes leverage of any single supplier.
Crocs initial product was manufactured out of % resin, which was compounded by a third party who has a strategic relationship with Foam Creations, the original. Crocs Case study 1. Crocs Case Supply Chain Management Group 3 1 2.
2 3. Company Description Footware company (Colorado, USA) o Impressive rapid growth & profitability o Popular (customers & retail clients) Product features: o extremely comfortable o odor resistant material (Croslite) o funky, bright colored o ventilation.
Operations Management-Crocs Shoes Case Study - Free download as PDF File .pdf) or read online for free. Critical analysis of the supply chain of Crocs Inc. The paper evaluates the supply chain of the company based on various theoretical models and provides a different perspective of the 'revolutionaizing' supply chain approach /5(16).
Q2: Use the FCF Valuation Template below to modify the analysis in the case, Ex.
6 (incorrectly labeled Ex. 5), calculating and defending an estimate of Crocs value. Soln: The preferred method to determine a company’s going-concern value by .Download