Case Study 3: Crocs
1. What are Croc’s core competencies?
Croc’s core competencies start with its highly flexible supply chain and the ability to fulfill new orders quickly, responding to increases in customer demand as it occurs. This would include them nearing vertical integration, owning a good portion of their own supply chain, with the flexibility and ability to meet small or large customized orders to a large or small volume customer. This is their primary core competency because it is revolutionary inside the footwear industry, and is not easy for their competitors to imitate. Part of this stems from the background of the CEO and staff he brought in (the electronics industry), as well as the low-cost materials used in making the shoe itself. The ability to fill orders as needed is extremely valuable to their business customer, and their model is used in markets across the globe.
I would include the forward-thinking of its CEO as a core competency, but core competencies reflect the collective learning of an organization and therefore are included in how his knowledge and experience was used in designing their supply chain.
2. How do they exploit these competencies in the future? Consider the following alternatives:
a. Further vertical integration into materials
b. Growth by acquisition
c. Growth by product extension
Well, the case study tells us how they are currently and how they are planning to exploit these competencies in the future. They’re already pushing towards vertical integration as they purchase different aspects of their own supply chain be it upstream or downstream. First there was the compounding activity for which they relied upon to the plant in Italy, and in 2006 they built their own plants in Canada, China, and Mexico. With warehousing they had been using contractors, but shifted to adding their own warehousing operations and each factory as well as transferring ownership from contractors with existing...