...Crocs, do you know about them? Of course, yes. Most of us have already known about Crocs. Maybe we have at least a pair of Crocs at home. Why do we like to use Crocs? Is it because it’s idiosyncratic use? Or is it fashionable? For me, Crocs are very comfortable and they are also following the modern in market. What do you know about Crocs? You will answer that I know about Crocs’ products. But I guess that most of us do not about Crocs’ history. That’s why, I want to introduce about Crocs to you all. Crocs appear in July 2002, in Boulder, Colorado. We can say that the inventors of Crocs are George Boedecker, Scott Seamans, and Duke Hanson. They decided to develop and manufacture shoes that are produced by Foam Creations, Inc. Foam Creations, Inc. produced plastic spa shoes. George and his friends developed the shoes into boating or outdoor shoes. Why were they called boating shoes? Because of it’s slip-resistant and non-marking sole. The first product of Crocs Company is Beach Model Crocs. Crocs Company introduced it’s first product in November 2002 at Florida Boat Show and sold out in two days. They provided 200 pairs of the first Crocs shoes. After selling out that day, he realized that he had something with a lot of potential. What do crocs make from? It is made from a material named croslite. Crocs Company has already bought Foam Creations, the company that developed and produced croslite, in 2004 along with the right to the croslite material. That was the first company...
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...Company Overview – Crocs, Inc. Crocs, Inc. (“Crocs”, the “company”) is a designer, manufacturer and distributor of footwear and accessories for men, women and children. Crocs began in 1999 as a limited liability company and later incorporated as a Delaware corporation in June 2005 before completing an initial public offering in February of 2006. The company’s primary products utilize a proprietary closed cell-resin, called Croslite. The major of the company’s products consists of footwear but Crocs also sells accessories and apparel. The company currently sells their products in more than 90 countries, mainly in the Americas, Asia, and Europe, through domestic and international retailers and distributors and directly to end-user consumers through their company-operated retail stores, outlets, kiosks and webstores. Crocs first introduced a single style clog in 2002 which was offered in six colors. The company since has expanded and currently offers of a wide product line of footwear, including boots, sandals, sneakers, mules and flats, which are made of leather and textile fabrics as well as Croslite. A key competitive advantage of the company’s footwear is the use of the Croslite material, which is uniquely suited for comfort and functionality. Croslite is extremely lightweight, comfortable and non-marking while also being water resistant and virtually odor free. The unique characteristics of Croslite enabled the company to offer consumers a shoe unlike any other footwear...
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...This case discusses the astounding growth of Crocs, Inc., a manufacturer of plastic shoes, from 2003 through early 2007. Much of the company’s growth was made possible by a highly flexible supply chain which enabled Crocs to build additional product within the selling season. The normal model used within the fashion industry was to take orders well in advance of each selling season, and produce to those orders, with relatively little additional production. If demand was far in excess of this production, there would be stockouts and the company would lose the ability to capture revenue for that season. The product might, or might not, be in fashion the following year, when production would again be based on pre-season orders. Crocs’ ability to build additional shoes within the season enabled it to take advantage of strong customer demand, resulting in the company filling in-season orders totaling many times that of the initial pre-booked orders. The case describes the Crocs supply chain. It asks students to assess the company’s core competencies and how those can be exploited in the future. The case was revised in March 2011 to present information on the company’s results in 2007 and prepare students for discussions of problems would face in 2008 (covered in the B and C cases). 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...
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...Consumer Behaviour Report Crocs : A brand in need of repositioning in India. Sushree Panda FT13180 • Section A • Great Lakes Institute of Management, Chennai 1 TABLE OF CONTENTS Introduction................................................................................................................03 Crocs in India : To reposition or not? ............................................................................04 The best way to reposition ...........................................................................................06 Conclusion.................................................................................................................07 References..................................................................................................................08 Sushree Panda • Consumer Behaviour Report • Great Lakes Institute of Management 2 INTRODUCTION You know your brand needs a repositioning when a fashion consultant like Tim Gunn makes a statement "...the Croc - it looks like a plastic hoof. How can you take that seriously?" Well, being taken seriously is definitely not what CROCS INC. is looking for as the brand itself stands for innovation, fun and comfort for the people who want shoes that conform to their personalities and lifestyles, as well as to their feet. Crocs introduced an innovative shoe made of a revolutionary material called Croslite. The technology was unique as it allowed the shoe to perform both on land...
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...Strategic Analysis for Crocs, Inc. To Increase Competitiveness in Shoe Industry Unit Code and Name: MGW1010 Introduction to Management Lecturer: Dr Esther Chong Tutor: Ms Aziana Word Count: 3300 word, excluding header and reference Contents Executive Summary i 1.0 Introduction 1 1.1 Purpose 1 1.2 Company Information 1 1.3 Assumption 1 1.4 Methodology 1 1.5 Plan of Report 1 2.0 SWOT Analysis 3 2.1 Identification of Strengths 3 2.1.1 Well recognized and financially sound 3 2.1.2 Have propriety rights over CrosliteTM material 3 2.2 Identification of Weaknesses 3 2.2.1 Expansion is a dilemma 3 2.2.2 Seasonal usage 3 2.3 Identification of Opportunities 4 2.3.1 Further exploration of the Asian market 4 2.3.2 Online sales 4 2.4 Identification of Threats 4 2.4.1 Replicas and imitation 4 2.4.2 Anti- Crocs Sentiment 5 3.0 Evaluation of Alternative Strategies 6 3.1 Proposed Alternative Strategies 6 3.1.1 Pursue diversification 6 3.1.2 Pursue vertical integration 7 3.2 Selection of Best Strategy 9 4.0 Implementation of Selected Strategy 10 4.1 Controlling Function 10 4.1.1 To implement feedforward control 10 4.1.2 To implement concurrent control 10 4.1.2 To implement feedback control 10 4.2 Organising Function 11 4.2.1 To introduce departmentalization 11 4.2.2 To execute formalisation 12 4.2.3 To implement decentralization 12 5.0 Conclusion 13 6.0 Reference List ii Executive Summary The purpose...
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...Crocs, Incorporated is a global company that produces and retails footwear and apparel; their current corporate level strategy has been to diversify into related industries, while utilizing existing distribution channels. Because the footwear industry is volatile, and consumer trends, disposable income and other economic factors influence demand, we recommend that Croc’s explore unrelated industries, so that they may diversify that risk. Though the company enjoyed record profits in 2007, many of these environmental factors adversely impacted the company’s financial and strategic position. In order to most successfully diversify, we recommend that Crocs, Incorporated partner with a well-established firm in another industry. Since Croc’s patented Croslite material has many uses and advantages, the company should leverage that material in whatever industry it chooses to compete. We recommend that Crocs enter into a joint venture with Inter IKEA Systems BV and create a co-branded patio-furniture line to be sold in IKEA retail centers. Crocs, Inc designs, manufactures, and retails footwear and apparel for men, women, and children. The company’s mission statement is to bring profound comfort, fun, and innovative footwear to the world’s feet. The company’s core product is the Crocs sandal, a shoe made of its patented Croslite material. The current financial position of the company is relatively weak compared to other industry competitors, and its strategic position is not effective...
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...outdoor/hiking boots) * Children’s athletic footwear (Incl sneakers & outdoor/hiking boots) Crocs footwear product range is divided into 3 categories: everyday, style and sport. From the everyday category, Crocs started in the Men’s, Women’s and Children’s footwear segment. Through its style category, which includes various dress shoes, Crocs is present in the Women’s Footwear and Men’s Footwear segment. Crocs expanded its Croslite products to include a variety of new styles and products and have extended product reach through the acquisitions of new brnads Jibbitz, YOU, Bite nd Ocean Minded. With the acquiring of Jibbitz, which produces unique charms specifically suited to fit into Crocs shoes, Crocs expanded into the Children’s footwear market. Through Ocean Minded, which produces sandals primarily for the beach, action and adventure market, Crocs deepened its presence in the Women’s, Men’s and Children’s footwear segment. By way of acquiring Bite, a manufacturer of performance shoes and sports sandals sold worldwide in five categories, including golf, adventure, healthy lifestyle, travel and watersports, Crocs within the sports category added the Athletic Footwear segment for Women, Men and Children to its target market. Closing out is YOU by CrocsTM, a women’s fashion line that combines the comfort of Croslite with fashionable styles, which strengths crocs...
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...assignment will be the Crocs, the product will be an adjustable high heels. The company will be analyzing based on their internal and external analysis which includes competitors, environment, consumers, market segmentation, targeting and positioning. Besides that a budget of RM 1 million will be given to spend for implementing the marketing channel within a 12 months period Table of Content No. | Title | Page No. | 1 | Executive Summary | 1 | 2 | Introduction | 3-4 | 3 | Situational Analysis | 5-8 | 4 | Creative Strategy | 9 | 5 | Campaign Objective & IMC Mix | 9-11 | 6 | Media Choice | 12-13 | 7 | Synergy between Media & Scheduling | 14 | 8 | Costing | 15 | 9 | Conclusion | 16 | 10 | References | 17 | I. Introduction About Crocs Crocs were founded in Boulder, Colo in the year of 1999. Project a simple, comfortable boat shoe image, Crocs footwear comes along with 120 styles and more for men, women and children. Colorful, lightweight comfort for all kind of occasion and all season has become Crocs distint collections & trademark. (About Crocs, 2012) All Crocs shoes are special designed and manufactured with the company's proprietary closed-cell resin- Croslite, an unique technology that makes each pair of shoes with soft, comfortable, lightweight, non-marking and odor-resistant qualities. Crocs footwear is ideally for casual wear, as well as for professional use and recreational activities. (About Crocs, 2012) Crocs footwear products...
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...1) What are Crocs’ core competencies? Crocs’ competencies are supply chain management and small-retailer level marketing, just in time distribution. Crocs has used its core competencies to build a brand familiarity and popularity and to distribute new models and accessories in mid-season. Their supply chain management has helped the company to create a stronger maturity map for their products, and to extend the maturity map through marketing. (Figrure 1. [write a brief description first]. Taken from the Crocs presentation) 2) How could Crocs exploit their core competencies in the future? Consider the following alternatives: a. Further vertical integration into materials b. Growth by acquisition c. Growth by product extension In the future, Crocs could grow, both by acquisition and by product extension. For product extension, they should use the Japanese product development map what it is called don’t remember any more (this development tree map can be seen below). Focus on the IP (formula) and reuse it on other products [This is a fragment connect it to previous senetence or make it a sentence. I don't understand what do you want to say by it]. This should give them a good map and guidance what product markets they can enter and extend the markets that they can work on. Product extension could create a confusion for the brand if they let it stretch on all product groups but it could be a strength also as its different products could be easily differentiated from...
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...Croc’s Operational Case Study Jeff S. Escher Herzing University – Madison, WI Dr. Armando Salas-Amaro 20 October 2013 Croc’s Operational Case Study Introduction In examining, the case study on Crocs; it displays an overview of the company’s objectives in operations to include the supply chain. This examination reveals the success behind how the company thrives in times when others are unable. Part of Crocs leading objectives and primary function is to reinvent the supply chain to provide less shortages and increase awareness and customer satisfaction. This paper will outline a brief overview of company history, Crocs two primary core competencies and in which manner do they exploit them; continued evaluation will cover vertical integration, acquisition, or product extension growth. Further discussion consists of company production and inventory as well, as how margins affect their decisions. History and a Foundation for Core Competencies Lyndon Hanson, Scott Seamans, and George Boedecker created Crocs, INC. in 2002 out of Boulder Colorado. The idea came from a trip taken by the three, where one of them had purchase a pair made from a company out of Canada. The decision to start a business selling the shoes was realized after they leased a warehouse in Florida; when sales took off, they contacted Ronald Synder a college friend who which was employed for Flextronics (electronics manufacture) in an executive position. The addition of Snyder was positive as he helped...
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...The Strategic Move of Crocs, Inc. By Jennifer von Briesen, Founder & Principal, Frontier Strategy, LLC Crocs, Inc. Overview Crocs, Inc. is a U.S. based shoe designer, manufacturer, and retailer that launched its business in 2002 selling Crocs™ brand casual plastic clogs with straps in a variety of solid, bright colors. Love them or hate them, the tremendous popularity of Crocs™ shoes is an undeniable business success story. Crocs’ bold strategic move allowed it to break out of the red ocean and achieve both differentiation and low costs to create a blue ocean. The result was rapid growth and global expansion to reach US$847 Million in revenues and US$168 Million of profits in 2007, just six years after launch. Crocs store in Boston, MA. © J. von Briesen, Frontier Strategy, LLC (2009) Unfortunately, after that, instead of remaining true to the principles of blue ocean strategy, Crocs started to compromise on the very foundation that made it a success. It lost its focus on a few simple styles and started offering a wide range of complicated styles and expanded too aggressively. The result was declining performance and higher costs. In the rest of this article, the story of Crocs’ strategic move will be explained and will conclude with some perspectives on the company’s current situation. Crocs Entered A Red Ocean Industry When It Launched in 2002 The U.S. footwear industry in 2002 was $49.3B in annual sales1, split about 60%-40% between fashion and...
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...CROCS CASE STUDY COMPETITION AND STRATEGY IN FASHION SHIHUI FU FEB 20TH Crocs Case Study What are Crock’s Core Competencies? The rapidly success of Crocs thanks to its core competencies: flexible supply chain model, well controlled the product cost, and the extremely comfortable product character. First and foremost, the design of distribution and supply plan contribute to Croc as a core competitive advantage. The advanced and flexible supply chain could reduce a lot of time and cost for the whole process of business. The electronics contract manufacturing system allows the company to adjust the volume of production in-season. The retail store could provide the database about the sales of each type of shoes, they could analysis the data to redesign the production structure according to the feedback from the customers. For example, they could enhance the manufacture of the best sale to replenish the shelves; If the shoes didn’t achieve a good sales number, they could reduce the amount to manufacture and advanced the inventory turnover. Second, the raw material of plastic shoes is less expensive, so the cost of the good could be controlled easily, which lead the marginal profit to be relatively higher than the competitors. The last core competitive advantage is the comfortable product trait appealing many customers to keep consuming the brand. Comfortable is a requirement for some specific professionals and the traveler when they making the purchase decision, those...
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...Direccion estrategica y control de gestion Yara sleiman 19/12/2014 crocs case Direccion estrategica y control de gestion Yara sleiman 19/12/2014 crocs case Introduction Crocs was created by three friends Scott Seamans, Lyndon "Duke" Hanson and George Boedecker in 2003 after discovering a comfortable plastic that was light weighted, easy to wash and did not produce any odors. Crocs produced shoes in different categories from sandals to flip flops to heels for men, women and children. They produced different styles and categories up to 300 four-season footwear styles with many colors. Rapidly this company grew and evolved and was able to sell around 100 million pairs in seven years. The innovative technology of having such comfortable material in so many different colors that can last long enough is what was advantageous for this firm at the beginning of its business. They achieved a huge success in the US footwear with around $49.3 billion in annual sales. They expanded their market and their production went global by owning manufacturing plants in Mexico and China and distribution centers in Japan and Netherlands. Even though crocs were popular in the US but actually more than half of the production was sold outside the US. Just like any other trend, this fashion had to come to an end. Consumers were not interested in buying crocs anymore and the sales dropped and the recession started. The demand fell and inventories were stacked and unsold and the losses started...
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...3a) (i) According to Trott, 2012, screening of business opportunity is an evaluation process that is not a one-time activity but needs to take place at every point of the new product development process. Product lead-users and product experts are sought to help in this activity. The key to this screening process is to enable the selection of feasible ideas and elimination of those which are deemed unworkable. There are typically 4 activities involved in the screening process, namely, initial screen, customer screen, technical screen and final screen. Before venturing into a home-delivery food business, we need to perform an initial screen which is to evaluate if the service will fit with the existing business. For example, whether the type of food we are serving is feasible for a home delivery. Would the quality of the food be compromised due to the packing and delivery time? These are some of the screening questions that should be considered at the initial screen. We also need to gather feedback from potential customers in order to develop our prototypes. For example, how long would customers be willing to wait for the delivery to arrive before they consider it to be too long? Customers’ preferences can be collected through this customer screen so that we can develop prototypes that meet their expectations. Technical screen is another important screening as it enables us to find out what are the technology and system needed to venture into this new service. The final screen...
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...Crocs le compraba máquinas de moldeado a dos proveedores básicos, quienes podían en principio entregar nuevas máquinas en aproximadamente tres meses; sin embargo, cuando los proveedores observaron el rápido crecimiento de Crocs, hicieron arreglos para tener las nuevas máquinas disponibles más rápido, en abril de 2007, la corporación podría obtenerlas por lo general dentro de seis semanas. Casi siempre los moldes empezaban a llegar dentro de seis semanas, pero se requerían casi tres meses antes de que Crocs tuviera el conjunto total de todos los tamaños. Crocs desplazaba el equipo de una localidad a otra para satisfacer mejor sus necesidades de producción. Las máquinas de moldeado no se transferían con frecuencia, pero cuando ello sucedía, la compañía trataba de tener máquinas sólo de un proveedor en cada sitio. No obstante, los moldes se transferían a menudo entre las localidades de producción. Si se necesitaba una respuesta rápida para satisfacer una demanda creciente en Estados Unidos, la producción podía desplazarse a México, que se ubicaba más cerca de los clientes. En el caso de los productos que tenían una gran cantidad de órdenes pre-reservadas, un pronóstico relativamente confiable y un alto volumen, la producción podría enviarse a China. Como parte del contrato de licencia con Disney, Crocs introdujo un zapato con una cabeza de Mickey Mouse, la cual cubría un nicho de mercado de Crocs. El producto llegó a ser muy popular y la empresa decidió que necesitaba flexibilidad...
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