Crocs Case Study - 1443 Words

Crocs made a splash in 2003 when they introduced their funny looking, brightly colored, plastic clogs that the whole family could wear (Hoyt Silverman, 2008). By 2007, the company reported $847 million in revenues (von Briesen, 2009). From preschoolers to doctors, these shoes appealed to a vast array of consumers. The reason for Crocs’ success over the past few years can be attributed to their value chain strategy in which customers ultimately had the power (Robbins Coulter, 2009). Value chains exist to create value for the customer at each step of the product’s life, from raw materials to marketing to final product disposal or reuse (â€Å"Value Chain,† n.d.). The sequence of this chain is intended to create a high value product for the†¦show more content†¦Additionally, their initial marketing tactics gave them an opportunity to identify customer needs (â€Å"The Value Chain,† 2010). When the company first started out, Crocs employees would pe rsonally interact with customers at trade shows and retail stores to educate customers and also create a buzz about their product (Hoyt Silverman, 2008). Furthermore, the most significant part of Crocs’ value chain is their success in making their product ubiquitous and easily attainable. Most shoe companies produce a limited amount of inventory per season and when the inventory is depleted, customers are out of luck until the next season. However, Crocs revolutionized the traditional shoe market with their ability to manufacture more shoes as needed. This flexibility exceeded customers’ needs because the company was able to supply an increase in demand within the same season (Hoyt Silverman, 2008). Finally, Crocs saw the value chain through to the end stage by offering their customers a way of giving back by recycling Crocs they no longer used. Crocs’ partnership with a company called Soles4Souls allows customers to donate their gently used shoes to the less fortunate (â€Å"Donate Your Crocs,† 2010). Crocs’ sequence of â€Å"organizational work activities† added value at each step (Robbins Coulter, 2009, p. 431). Additional value was added to their value chain by increasing variety of the product (â€Å"Value Chain,† 2010). Whether you lovedShow MoreRelatedCrocs Case Study2682 Words   |  11 Pages 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 structureRead MoreCrocs Case Study1351 Words   |  6 Pages 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 â€Å"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 â€Å"capture the amphibious nature of the product.†Read MoreEssay about Crocs Case Study1385 Words   |  6 Pagesbusinesses and the footwear industry is no exception. Datamonitor’s profile of the industry estimates that in 2008 the global footwear market was valued at $196.6 billion and projects that figure to grow to 232.1 billion by 2013. How can firms such as CROCS or ECCO succeed in this global market? Datamonitor points out that this industry is highly competitive and that rivalry between firms is strong. A key success factor for the footwear industry is the successful development and management of a profitableRead MoreCrocs Case Study Essay1114 Words   |  5 PagesCASE: 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 isRead MoreCrocs Case Study Essay1060 Words   |  5 PagesCrocs emerged in 2003, quickly growing in both scope and profitability as a result of its unique value chain management system. Foregoing traditional models, Crocs q uickly acquired and established a world-wide network of supply, manufacturing, production, and delivery systems. This gave Crocs the ability to minimize costs, maximize efficiency, and deliver the best value to their customers. Within this customer-focused framework, Crocs created a unique global value management system, superior inRead MoreCrocs, Inc. Case Study Report Essay2078 Words   |  9 PagesUNIVERSITY CROCS, INC. Case Study Report  ¹ SUBMITTED TO PROF. NEIL COHEN School of Business and Public Management The George Washington University BY Anil Kumar Cheerla FINA 6224 FINANCIAL MANAGEMENT WASHINGTON, DC January 26, 2011 Q1: Consider which comparable peers are good matches and use them to perform a multiples analysis, calculating and defending an estimate of Crocs value. Soln: Comparable companies analysis – Done to determine appropriate valuation multiple for Crocs, Inc.Read MoreEssay Value Chain Management - Crocs Case Study1257 Words   |  6 PagesCrocs splashed onto the scene in 2002 with brightly colored plastic shoes that the whole family could wear. From preschoolers to doctors, these shoes appealed to a vast array of consumers. The reason for Crocs’ success can be attributed to their value chain development. Value chains exist to enhance value created at every step of the manufacturing process, from raw materials to final product disposal or reuse (â€Å"Value Chain,† n.d.). The sequence of this chain gives the customer high value for a lowRead MoreEssay about Value Chain at Crocs, Inc.977 Words   |  4 PagesThe first impression one might have about Crocs products are that they are basically plastic looking shoes that are comfortable and readily available. Customers familiar with this product boast, like on the company website, about the company’s proprietary closed-cell resin, Crosliteâ„ ¢, a technology that gives each pair of shoes the soft, comfortable, lightweight, non-marking and odor-resistant qualities(Company.crocs.com, 2011). There are also various comments about how the material does notRead MoreSwot Analysis : Publix Inc. Core Competencies888 Words   |  4 PagesCrocs Case Analysis This case analysis will discuss Crocs, Inc. core competencies and explain how Croc should exploit these competencies in the future. There will be an examination of options and an identified recommended choice (i.e. further vertical integration, growth by acquisition, or growth by product extension). In addition, there will be a review of the alternatives that fit and do not fit within the company’s core competencies. Finally, there will be a recommendation on how Crocs shouldRead MoreCrocs Shoes Itself in Global Supply Chain2868 Words   |  12 PagesBy: Hanan Alzayied KMBS student-Kuwait-July2012 Crocs Shoes itself in Global Supply Chain Abstract: Crocs, Inc. is a U.S. based shoe designer, manufacturer, and retailer that launched its business in 2002 selling Crocsâ„ ¢ brand casual plastic clogs with straps in a variety of solid, bright colors, Crocsâ„ ¢ introduced an innovative shoe made of a revolutionary material called Crosliteâ„ ¢ technology which held unique characteristics that allowed it to perform on both land and in water. The