Crocs: Revolutionizing an Industry's Chain Model for Competitive Advantage

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Crocs: Revolutionizing an industry’s chain model for competitive advantage

Executive Summary:

Crocs, Inc. experienced astonishing growth within a short period of time and managed its highly flexible supply chain in ways which enabled Crocs to build additional product within the selling season. Building within the selling season made Crocs take advantage of strong customer demand, resulting in the company filling in-season orders totaling many times that of the initial pre-booked orders. But on the other hand Crocs, Inc. has a problem with high excess capacity and inventory levels which could be a threat to the company because so much money is tied up in assets. Crocs should try not to make everything in house but also outsource non-core manufacturing processes to other companies in order to cut costs and have capacity for core products.

Organizational Profile/Overview:

Crocs, Inc. was established in 2002 in the U.S. and is one of the fast growing companies and brands in the world. Crocs, Inc. designs, manufactures and sells footwear and accessories for men, women and children of all ages in about 100 countries worldwide. The shoes are made of closed-cell resin, which is some kind of soft plastic and which offers high comfort and perfect fit. The shoes are light-weight, slip resistant and odor-free. The footwear industry can be regarded to be at an saturated stage, but the demand for footwear is unlikely to drop dramatically. Crocs, Inc. used word of mouth marketing through its small retail customers and then was approached by large retail customers as well. The company also went to trade shows, public events, worked in stores and maintained a cordial working relations with its retailers and distributors. The manufacturing process as well as the design is done in house in a vertically integrated way in order to have more control over...
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