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Crocs
Crocs :: Revolutionizing
Revolutionizing
an
an Industry’s
Industry’s Supply
Supply Chain
Chain Model
Model for
for
Competitive
Competitive Advantage
Advantage

BY GROUP 5
CASE STUDY INCLUDES

1 Company Overview

2 Traditional Supply Chain

3 Crocs Supply Chain

4 Core Competencies & Key

Success Factors

5 Crocs’ Sales Year 2007

COMPANY
OVERVIEW
 CROCS > OVERVIEW

Crocs Inc. makes footwear for men,

women, and children.
This material creates a soft,
lightweight, non-marking,
slip- and odor-resistant shoe. Title

The unique resin material, croslite.

TRADITIONAL
SUPPLY

CHAIN
 Demand Flow

Supplier
Supplier Manufacturer
Manufacturer Distributor
Distributor Retailer
Retailer

Product Flow
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CROCS
SUPPLY
CHAIN
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DEVELOPING THE CROCS SUPPLY
CHAIN

Taking over Production Global Production Bringing the Global

Using Contract Supply Chain In-House
Manufacturers
 Buying the Crocs
shoe manufacturer.  Buying the contractor
 Flexible production.
and setting up a new
 Rapid response to
facility.
Demand.
DEVELOPING THE CROCS SUPPLY
CHAIN

Taking over Production Global Production Bringing the Global

Using Contract Supply Chain In-House
Manufacturers
 Buying the Crocs
shoe manufacturer.  Buying the contractor
 Flexible production. and setting up a new
 Rapid response to facility.
Demand.
DEVELOPING THE CROCS SUPPLY
CHAIN

Taking over Production Global Production Bringing the Global

Using Contract Supply Chain In-House
Manufacturers
 Buying the Crocs
shoe manufacturer.  Buying the contractor
 Flexible production. and setting up a new
 Rapid response to facility.
Demand.
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CORE
COMPETENCIES
& KEY SUCCESS
FACTORS
 CORE COMPETENCIES

Core
Competencies

Highly flexible
Know How of
supply chain.
Croslite.
 KEY SUCCESS FACTORS

Small vs. Large Dealing with

Retailers explosive Growth

Diversity and
Shifting Production
Unique products
to reduce duty
And Supply chain
payments.
Planning
CROCS’S
SALES
YEAR 2007
CROCS’ SALES YEAR 2007

USA

68%
8%
OTHER
8%
16%

EUROPE
ASIA
 REVENUES IN
2007
144.2
Gross Profit
84.2
Net income
after tax= 24.9

REVENUES IN
2006
44.8
Gross Profit Annual sales= 355
23.7 Market capitalization= 2102
Net income In 2011-12 Market capitalization of
after tax= 6.4 Crocs, Inc. (NasdaqGS: CROX )
 $1.38B
All figures are in million dollar.