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    Crocs

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    Neysa
    Crocs has developed a core competence in its highly responsive supply chain. Through heavy investment, Crocs developed a revolutionary supply chain system that strengthens relationships with retailers by quickly responding to fluctuations in customer demand. This allows retailers to base orders on actual sales rather than forecasts, reducing risk of over- or under-stocking. Crocs exploits this competence through further vertical integration into materials, growth by acquisition of complementary companies, and growth through product line extensions, allowing it to rapidly scale operations while maintaining supply chain responsiveness.

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    Crocs

    Uploaded by

    Neysa
    117 views2 pages
    Crocs has developed a core competence in its highly responsive supply chain. Through heavy investment, Crocs developed a revolutionary supply chain system that strengthens relationships with retailers by quickly responding to fluctuations in customer demand. This allows retailers to base orders on actual sales rather than forecasts, reducing risk of over- or under-stocking. Crocs exploits this competence through further vertical integration into materials, growth by acquisition of complementary companies, and growth through product line extensions, allowing it to rapidly scale operations while maintaining supply chain responsiveness.

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    Supply Chain

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    Crocs has developed a core competence in its highly responsive supply chain. Through heavy investment, Crocs developed a revolutionary supply chain system that strengthens relationships with retailers by quickly responding to fluctuations in customer demand. This allows retailers to base orders on actual sales rather than forecasts, reducing risk of over- or under-stocking. Crocs exploits this competence through further vertical integration into materials, growth by acquisition of complementary companies, and growth through product line extensions, allowing it to rapidly scale operations while maintaining supply chain responsiveness.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    117 views2 pages

    Crocs

    Uploaded by

    Neysa
    Crocs has developed a core competence in its highly responsive supply chain. Through heavy investment, Crocs developed a revolutionary supply chain system that strengthens relationships with retailers by quickly responding to fluctuations in customer demand. This allows retailers to base orders on actual sales rather than forecasts, reducing risk of over- or under-stocking. Crocs exploits this competence through further vertical integration into materials, growth by acquisition of complementary companies, and growth through product line extensions, allowing it to rapidly scale operations while maintaining supply chain responsiveness.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    http://www.academia.

    edu/8781634/Supply_Chain_Management_of_Crocs
    https://prezi.com/syqiqkbp_tl-/revolutionizing-an-industrys-supply-chain-modelfor-competi/
    Student: Chihab EL ALAOUI

    ID: 118989
    CROCS (A): Revolutionizing an industrys supply chain model for competitive
    advantage
    1. What are Croc's core competences?
    The core competencies are the sustainable capabilities that are valuable, rare,
    costly to imitate and nosubstitutable, which serve as a source of competitive
    advantage for Crocs over its rivals. It distinguishes
    the company from whole industrys competitors and cr
    eates through that its own personality
    (Ireland, the Management of Strategy, 9
    th
    Ed.)
    .
    From the details mentioned in the case we can figure out that Crocs
    core competencies that fit with all four criteria of core competencies concept is it
    highly responsive supplychain, by maintaining the flexibility to the unexpected
    demands and offers of retailers, with efficiency of its distribution model and cost
    advantages created. The crocs top management examined the footwearindustry
    supply chain and immediately noticed its limitations. The existing supply chain
    used to processrequests that companies receive from retailers at the beginning
    of the year on January and manufacture thedemand supplies for the next spring
    and fall seasons with some excess in order to manage any unexpecteddemand.
    However, this traditional supply chain system had many deficiencies, because
    retailers had tobase their requests on their forecasts which definitely will lead
    either to overestimation and unsold stock and subsequently loss, or
    underestimation which meant loss of potential profit. Instead, Crocs developed
    arevolutionary supply chain system which strengthens its relationship with
    retailers by quick response to
    any fluctuations in customers demands. This result was possible due
    to the heavy investment made by thecompany in its infrastructure and the
    development of the supply chain with the new management through3 steps:

    Further vertical integration into materials; Growth by acquisition; and Growth by


    productextension. This will be discussed in 2nd question.

    2. How do they exploit these competences in the future?


    a)Further vertical integration in to materials
    : There exist two types of supply chain practices.
    Efficient Supply Chain Practices (Lean)
    which is applied when demand is supply chains ar

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