Read the Stanford Graduate School case study, Crocs: Revolutionizing an Industry's Supply Chain Model for Competitive Advantage
Answer the study questions below in depth:
1) What are Croc's core competencies?
2) How do they exploit these competencies in the future? Consider the following
a. Further vertical integration into materials
b. Growth by acquisition
c. Growth by product extension
3) To what degree do the alternatives in Question 2 fit the company's core competencies,
and to what degree do they defocus the company away from its core competencies?
4) How should Crocs plan its production and inventory? How would the company's gross
margins affect this decision?
5) Think of a Croc competitor. How does their supply chain process compare and contrast?
Below are some thoughts re: Crocs; attached as well. Please let me know if you have any questions.
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1. Core competencies are what sets a product or service apart from others, what makes it unique. Croc's core competencies could include the material (resin) used in their shoes, which makes the shoes comfortable and odor-free. Another could be their order fulfillment capabilities. They own their own manufacturing plants which make for fewer lost orders and allows them to respond faster to the market demand. Said another way, generally, the core competencies are Crocs abilities to create and distribute the shoe in a manner that would be too costly (or impossible) to imitate, giving them an advantage over their competition.
a. Crocs owns the manufacturing facilities so they are able to keep large amounts of materials on hand meaning they are able to house the raw materials in large quantities cutting down on costs involved when ordering ...
Crocs supply chain and operations are the focus, along with comparison to competitor.