Crocs Case Study

1) Discuss how the readings are used to enhance understanding and demonstrate real-life applications of concepts discussed in this course; and address their implications for organizations.

In the case of Crocs, the reading goes a long way in describing how they were able to grow exponentially. Specifically how they were were able to take a supply chain in a industry that is not known for being agile, and creating one that is able to scale efficiently, while remaining aware of customer needs and wants at a rate that that is unheard of in the shoe industry. On page 42-43 of the textbook it is possible to go through the list of how operations effects competitiveness, and can substitute examples Crocs was able to incorporate into their supply chain, while avoiding the pitfalls some corporations fall into.

2. Answer the following questions

1) What are Croc's core competencies?

Croc's core competencies lies within its supply chain. Primarily that it was able, to within a very short period of time to explode in growth. While at the same time reducing costs via vertical integration in their supply chain, to allow for gross margin percentages of 58.7% in 2007.

More specifically how their supply chain allowed for a managing processes to meet demand with very little waste. Many in the shoe industry have a ramp up time, to allow for the factories in China to build up for production. Croc was able to harness the high productivity of China to allow for mass production, but they also built relationships in other parts of the world to allow for quicker shipping, and production nearer their primary sources of consumption. This production was made possible by their acquisition of the croslite intellectual property, and then building a supply chain to allow for quick production, at lower costs.

2) How do they exploit these competencies in the future?

Crocs is a corporation that experienced massive growth due to several factors. One being that it was able to exploit its core competencies of supply chain management, that was brought to the corporation via Ronald Snyder. Ronald Snyder was brought into the corporation pre-recession in 2003. His expertise in essentially building the supply chain, coupled with the newness of the product allowed for exponential growth.

It can not be overstated that the variables that allowed for exponential growth from 2003-2007 have vanished. When the article was published Croc was enjoying a growth rate of 138.9%, but the very next year it had plummeted to 14.8%, and by 2009 it was 10.5%. In the same time the gross margin percentage peeked in 2007 at 58.7%, but the very next year declined to 32.4%, with coming more in line with the other shoe manufacturers at 46.6%.

There are still some chances