Croc's case study
1. What are the Croc’s core competencies?
- Flexibility of the supply chain is one of the first and foremost core competencies. This was achieved through bringing the supply chain in house, developing a model focused on customer needs, and developing a global presence that could respond quickly to changes in demand.
- Launching the brand globally before other companies had the opportunity to so that they would be the sustainable brand.
- Creating the capacity for higher production in excess of demand so that there could be a quick response to changes in demand.
- Innovative product development that utilizes current manufacturing.
- Start small and build relationships with small retailers that after becoming popular will allow Croc’s the upper hand in negotiations with the large retailers.
2. How do they exploit these competencies in the future? Consider the following alternatives:
a. Further vertical integration into materials
• Utilizing existing equipment to incorporate new materials into new product designs.
b. Growth by acquisition
• Acquired companies so that they could keep processes in-house
• Played the duty tariff game to take advantage of benefits
c. Growth by product extension
• Tailoring product styles to collegiate teams
• Tailoring product styles with Disney themes
3. To what degree do the alternatives in question 2 fit the company’s core competencies, and to what degree do they defocus the company away from its core competencies?
Vertical integration into materials fits easily fits into the company’s core competencies. It allows them to utilize their existing technology and equipment to expand their product line. One way that it may not fit into the core competencies is because it causes them to shift molds between manufacturing plants. Not all plants can make the entire product line.
Acquiring the known brands helps to keep process in house, but it may also come at a higher price. Croc’s has previously
- Flexibility of the supply chain is one of the first and foremost core competencies. This was achieved through bringing the supply chain in house, developing a model focused on customer needs, and developing a global presence that could respond quickly to changes in demand.
- Launching the brand globally before other companies had the opportunity to so that they would be the sustainable brand.
- Creating the capacity for higher production in excess of demand so that there could be a quick response to changes in demand.
- Innovative product development that utilizes current manufacturing.
- Start small and build relationships with small retailers that after becoming popular will allow Croc’s the upper hand in negotiations with the large retailers.
2. How do they exploit these competencies in the future? Consider the following alternatives:
a. Further vertical integration into materials
• Utilizing existing equipment to incorporate new materials into new product designs.
b. Growth by acquisition
• Acquired companies so that they could keep processes in-house
• Played the duty tariff game to take advantage of benefits
c. Growth by product extension
• Tailoring product styles to collegiate teams
• Tailoring product styles with Disney themes
3. To what degree do the alternatives in question 2 fit the company’s core competencies, and to what degree do they defocus the company away from its core competencies?
Vertical integration into materials fits easily fits into the company’s core competencies. It allows them to utilize their existing technology and equipment to expand their product line. One way that it may not fit into the core competencies is because it causes them to shift molds between manufacturing plants. Not all plants can make the entire product line.
Acquiring the known brands helps to keep process in house, but it may also come at a higher price. Croc’s has previously