Crocs Supply Chain
1. What are Crocs core competencies?
* Highly flexible supply chain * Innovative and proprietary material: crosslite * Innovative product development * Efficient manufacturing processes that allows the company to produce more than 250 styles of shoes * Global Marketing & Distribution; the company is selling its products in 125 countries
2. How do they exploit these competencies in the future? Consider the following alternatives:
a. Further integration into materials
Crocs has taken advantage of its manufacturing capabilities to add more variety to its products by incorporating traditional materials such as fabrics and leather into many of their styles.
The company should explore creating blends of Croslite with other materials to develop new products such as the creation of Croslite rt (relaxed technology) by blending Croslite with cotton to make sweat resistant clothing.
b. Growth by acquisition
As seen in the table below, Crocs has expanded very rapidly since the company started thru several acquisitions: Company | Year | Price (in M) | Description | | Foam Creations Inc | 2004 | $6.90 | Manufacturer of Croslite foam clog shoes | | Jibbitz, LLC | 2006 | $20.20 | Decorative charms for Crocs shoes | | Fury Hockey, Inc | 2006 | $1.50 | Hockey, soccer and lacrosse equipment manufactured with Croslite | Discontinued | EXO Italia | 2006 | $8.10 | Designer of ethylene vinyl acetate (EVA) products for footwear industry | | Ocean Minded, Inc | 2007 | $5.50 | Manufacturer of leather sandals for beach/action sports | | Bite, LLC | 2007 | $4.80 | Manufacturer of performance shoes and sports sandals | Discontinued | Tidal Trade, Inc | 2008 | $4.60 | Crocs distributor in South Africa | | Tagger International | 2008 | $2.00 | Manufacturer of messenger bags | Discontinued | | | | | | The following brands were discontinued by Crocs shortly after acquisition: Fury Hockey
* Highly flexible supply chain * Innovative and proprietary material: crosslite * Innovative product development * Efficient manufacturing processes that allows the company to produce more than 250 styles of shoes * Global Marketing & Distribution; the company is selling its products in 125 countries
2. How do they exploit these competencies in the future? Consider the following alternatives:
a. Further integration into materials
Crocs has taken advantage of its manufacturing capabilities to add more variety to its products by incorporating traditional materials such as fabrics and leather into many of their styles.
The company should explore creating blends of Croslite with other materials to develop new products such as the creation of Croslite rt (relaxed technology) by blending Croslite with cotton to make sweat resistant clothing.
b. Growth by acquisition
As seen in the table below, Crocs has expanded very rapidly since the company started thru several acquisitions: Company | Year | Price (in M) | Description | | Foam Creations Inc | 2004 | $6.90 | Manufacturer of Croslite foam clog shoes | | Jibbitz, LLC | 2006 | $20.20 | Decorative charms for Crocs shoes | | Fury Hockey, Inc | 2006 | $1.50 | Hockey, soccer and lacrosse equipment manufactured with Croslite | Discontinued | EXO Italia | 2006 | $8.10 | Designer of ethylene vinyl acetate (EVA) products for footwear industry | | Ocean Minded, Inc | 2007 | $5.50 | Manufacturer of leather sandals for beach/action sports | | Bite, LLC | 2007 | $4.80 | Manufacturer of performance shoes and sports sandals | Discontinued | Tidal Trade, Inc | 2008 | $4.60 | Crocs distributor in South Africa | | Tagger International | 2008 | $2.00 | Manufacturer of messenger bags | Discontinued | | | | | | The following brands were discontinued by Crocs shortly after acquisition: Fury Hockey