Crocs: Revolutionizing an Industry’s Supply Chain Model for Competitive Advantage
Q 1) What are Crocs core competencies?
Ans: I think that some of the core competencies of Crocs are as follows: a.
Well co-ordinated supply chain: This is one thing that sets apart Crocs from the other show manufacturers. After acquiring Foam Creations, they actively opened more production stores in different parts of the world and currently have a capacity which is much larger than the demand expected. This helps them fulfill the orders which are generated very fast. Also, because of this, they have the capability to manage their supply more efficiently depending on the demand of the market. For example, if a particular type of product if very well received, they can ramp up the production of that particular product and supply it within six weeks. Thus, minimizing stockouts and over production wastes. b.
Globalized Market Demand and First Mover Advantage: Immediately after Snyder took over as the CEO of Crocs, they aggresively expanded themselves into new territories and were a significant market player in the Asian and European markets. This has enabled them to get the advantage of the first mover and establish crucial relationships with the retailers and the consumers in those markets. This has substantially decreased the threat of new entrants and is a core strategic asset for Crocs. c.
Raw Materials Used, Croslite: The raw materials which are used by Crocs in the manufacture of the shoes is croslite. This is cheaper than the traditional material used in making footwear which is leather. This also is odor free and is lighter and does not get spoilt by it is unsold for an year or so. This ability of Crocs to make a superior product from a cheaper material itself is one of the most important core competency of Crocs. Q2) How do they exploit these competencies in the future? Consider the following alternatives: a.
Further vertical integration into materials
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