Crocs, Incorporated was founded by three Boulder, Colorado men looking to develop and market an innovative type of footwear. Crocs were originally intended as a boating/outdoor shoe, but by 2003 were regarded as an all-purpose shoe (Crocs Incorporated, 2007). The shoes are made of proprietary closed-cell resin and are designed for men, women, and children. Today, Crocs are available all over the world and on the Internet as well. The shoes sell in 11,000 United States' shops, such as Nordstrom and specialty stores, and in 80 countries. Crocs gets most of its revenue from sales to customers younger than 18 years old and older than 30 (Hoovers North America, 2007). II. STRATEGIC DIRECTION
There is no mission statement.
increase in the number of retail stores selling our products new product offerings
increased sales at retail locations owned by us and through our web stores, and expansion of direct sales into new markets, including China, Brazil and India. enhance and further develop production capacity and global infrastructure to
support the growth of the business and retail sales
further formalization of accounting standards and guidelines, improved segregation of duties, hiring additional competent accounting managers and staff, and improving information technology system controls increase inventory positions primarily in core styles in order to meet anticipated demands for the nine months ending June30, 2008 and, at the same time, make available production capacity for new product lines for delivery in the quarters ending December31, 2007 and March31, 2008 build brand awareness
expand into new footwear categories and expand accessory items that compliment the products. C. Industry Standard Industrial Classification or North American Industry Classification System The primary Standard Industrial Classification is 3021: Rubber and Plastics Footwear. This classification consists of "establishments primarily engaged in manufacturing fabric upper footwear having rubber or plastics soles vulcanized, injection molded, or cemented to the uppers, and rubber and plastics protective footwear" (Occupational Safety & Health Administration [OSHA], n.d.). The primary North American Industry Classification is 316211: Rubber and Plastics Footwear Manufacturing. This classification consists of "establishments primarily engaged in manufacturing rubber and plastics footwear with vulcanized rubber or plastics soles, molded or cemented to rubber, plastics, or fabric uppers, and rubber and plastics protective footwear" (U.S. Census Bureau, 2007). D. Market Structure
The market structure for Crocs, Incorporated would be that of monopolistic competition. Monopolistic competition is a market in which there are a large number of relatively small firms acting independently. These firms have product differentiation and the entry and exit of the market is relatively easy. Additionally, non-price competition is very important. This describes Crocs, Incorporated in that it has many competitors and high product differentiation. III. INDUSTRY ENVIRONMENT PORTERS FIVE FORCES OF COMPETITION A. Rivalry Among Competitive Firms
According to Hoovers, the three main competitors of Crocs are Deckers Outdoor Corporation, Nike, Inc. and Timberland Company. All of these companies manufacture shoes and apparels. The American Apparel and Footwear Association (AAFA, 2006), reported that in 2005 the US consumption of rubber and plastic footwear grew by three percent to 332 million pairs. The Census Bureau reported in 2005, that there were 62 companies just within the United States alone. Positive market growth and increase in number of companies make this industry highly competitive. Crocs Inc. also faces competition from companies that produce imitations of their popular products that put a strain on their market. B. Barriers to...