Crocs : Revolutionizing an Industry’s Supply Chain Model for

Competitive Advantage

BY GROUP 5

CASE STUDY INCLUDES

Company Overview1

Traditional Supply Chain2

Crocs Supply Chain3

Core Competencies & Key Success Factors

4

Crocs’ Sales Year 20075

COMPANY OVERVIEW

CROCS > OVERVIEW

TitleThis material creates a soft, lightweight, non-marking, slip- and odor-resistant shoe.

Crocs Inc. makes footwear for men, women, and children.

The unique resin material, croslite.

TRADITIONAL SUPPLY

CHAIN

Supplier Manufacturer Distributor Retailer

Product Flow

Demand Flow

www.themegallery.com

www.themegallery.com

www.themegallery.com

CROCS SUPPLY CHAIN

www.themegallery.com

www.themegallery.com

www.themegallery.com

DEVELOPING THE CROCS SUPPLY CHAIN

Taking over Production

Buying the Crocs shoe manufacturer.

Global Production Using Contract Manufacturers

Flexible production. Rapid response to Demand.

Bringing the Global Supply Chain In-House

Buying the contractor and setting up a new facility.

DEVELOPING THE CROCS SUPPLY CHAIN

Taking over Production

Buying the Crocs shoe manufacturer.

Global Production Using Contract Manufacturers

Flexible production. Rapid response to Demand.

Bringing the Global Supply Chain In-House

Buying the contractor and setting up a new facility.

DEVELOPING THE CROCS SUPPLY CHAIN

Taking over Production

Buying the Crocs shoe manufacturer.

Global Production Using Contract Manufacturers

Flexible production. Rapid response to Demand.

Bringing the Global Supply Chain In-House

Buying the contractor and setting up a new facility.

www.themegallery.com

CORE COMPETENCIES& KEY SUCCESSFACTORS

CORE COMPETENCIES

CoreCompetencies

Know How of Croslite.

Highly flexiblesupply chain.

KEY SUCCESS FACTORS

Dealing with explosive Growth

Diversity and Unique products

And Supply chain Planning

Small vs. Large Retailers

Shifting Production to reduce duty

payments.

CROCS’S SALES YEAR 2007

CROCS’ SALES YEAR 2007

8%8%

68%

16%OTHER

EUROPEASIA

USA

REVENUES IN 200644.8

Gross Profit 23.7

Net income after tax= 6.4

REVENUES IN 2007

144.2Gross Profit

84.2 Net income

after tax= 24.9

Annual sales= 355 Market capitalization= 2102

In 2011-12 Market capitalization of Crocs, Inc. (NasdaqGS: CROX )

 $1.38BAll figures are in million dollar.