Question 1: One of Crocs core competencies is a highly responsive supply chain. How does this give Crocs the advantage over its competitors? And, describe the three phase supply chain development strategy that Crocs used to achieve their flexible supply chain. To satisfy its mission and comply with growing consumer demands, Crocs has built a strategic business concept around maintaining flexibility to offer retailers timely fulfillment while capitalizing on the efficiencies and cost advantages.
The history of Crocs can be roughly summed up as three friends that pursued an idea and it worked. Crocs established in 2002 after three friends took a fishing trip to the Caribbean. Lyndon “Duke” Hanson, Scott Seamans and George Boedecker, were so impressed with the slip-resistant foam shoes, they decided to sell the Canadian produced clog shoes manufactured by Finproject NA out of a leased warehouse in Florida. The friends choose the name Croc to “capture the amphibious nature of the product.”
CROCS have some competitors: TBL, NKE, DECK and so on. All of these competitors have strong abilities. For example, in NKE’ 2010 annual report, great spirits of innovation and inspiration have been showed. What’s more, NKE got a great development during the year: NKE delivered record profitability. NKE not only pay attention to the quality, but also attach importance to comfort and appearance. Wearing NKE always makes people feel comfortable and sporting. CROCS do three things to counter the competition
INTRODUCTION Crocs Inc. is a U.S based shoe designer, manufacturer and retailer. It was founded in 2002 by three friends - Lyndon “Duke” Hanson, Scott Seamans and George Boedecker. Crocs shoes are manufactured from “Croslite”. They are comfortable & light weight, odour resistant, do not skid, easy to wash and do not mark surfaces. Owing to the properties of the resin, Croslite, the shoes could be manufactured in any colour. The company, however, chose bold colours. By April 2007, Crocs had a variety
Crocs, INC is a world leader in innovative casual footwear. The key product differentiator that Croc’s offers is their use of “Croslite” material, a revolutionary technology that gives each pair of shoes the soft, comfortable, lightweight, non-marking, slip and odor-resistant qualities that Crocs consumers know and love. Founded by Scott Seamans, Lyndon "Duke" Hanson, and George Boedecker, Jr, Crocs was the product that resulted from a sailing trip in the Caribbean and their need for a shoe that
Crocs Financial Analysis Abstract: This case looks at analyzing Crocs, Inc. and the tremendous growth they started off with as a new company in the apparel market. We also analyze Crocs competitors based upon three different ratios (PE, EV to EBITDA and EV to Sales) in order to gain an understanding of where Crocs stands in the market at the time of this case (2007). Using the growth rate estimates, we also value the company’s stock value. Certain assumptions are made regarding the sales and
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].
The ability to fulfill orders based off of true and current demand is the staple of the Crocs supply chain. The flexibility in the Crocs supply chain has been in the company’s ability to provide additional products within the same season of release by not requiring their customers to order one time for the season and months in advance (Marks, Holloway, Lee, Hoyt, Silverman, 2011, para. 11). However, this design is not without dependency for a demand for the product. In its current structure,
If referred to the existing crocs shoes model with same model, the price of the crocs is around RM169.00 to RM269.00. With the new innovate features and shape design, the price should be more than RM269.00 of normal crocs flat shoes, but less than RM300. The price suggestion would be RM299.00. The price is a little bit higher than the existing product, because of the new upgraded which is better and safe to be wear by kids and also adult. With the affordable price and good upgraded shoes, we can
CASE: Crocs, Inc. 1. Which comparable company is a useful peer for valuation purposes as of the case date? Will it continue to be a good match into the future? Lululemon is a useful peer for valuation purposes as of the case date. There are three main factors to determine a useful peer. First one is comparable growth. Fiscal year 2006 sales growth of Crocs had been %227 and growth of over %130 was likely for fiscal year 2007. On the other side, compound annual growth rate of sales of Lululemon is