1 February 2013
Crocs: A Case Study Analysis
Q:What are Croc’s core competencies?
A:Crocs has several core competencies. However, most of their core competencies and competitive advantage stems from their extremely well-coordinated supply chain and their supply chain management. Croc’s use of supply chain management sets them apart from competitors in the footwear industry. Supply chain management involves coordinating activities across the supply chain (suppliers, distributors, transportation, retailers, etc.). Central to this is taking customer demand and translating it into corresponding activities at each level of the supply chain. When Croc’s acquired Foam Creations, they opened more production stores in different spots across the globe. This allowed the company to have a supply capacity far greater than expected demand. By doing this, Croc’s can fill orders much faster than many other competitors. Another benefit of this coordinated supply chain is analyzing and reacting to trends. If a certain product or creation seems to be taking off or quickly becomes popular, Croc’s can fulfill the heightened demand of that product. Since they own most of their supply chain, the company can efficiently manage the production and delivery of its products, in a timely manner in which consumers love and are willing to pay extra for. This process also minimizes and potentially eliminates problems of stock shortages and extra product waste. Croc’s creates value in its supply chain management.
Another core competency is the globalized market demand. Because Croc’s aggressively expanded after Snyder took over as the CEO, the company found itself in new territory and exposed itself to new markets (primarily the Asian and European market). The company found numerous new customers and created established relationships with retailers in these new markets. Because they quickly spread their influence, they took on the...