Crocs Essay

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A New Strategy for Crocs 2010 * Ronald Lugo * Simon Sanders * Chad Heineken * Nemanja Savić GEB4890 4/27/2010 Table of Contents Executive Summary 3 Introduction 3 Internal and External Analysis 4 Current Strategy 4 Financial performers indicators the trailing twelve months for Crocs, Inc and 3 market competitors 5 Prioritized SWOT analysis 7 SWOT Summary 7 Competitors’ Strategies 9 Strategic Recommendation 10 New Strategy 10 Defense of New Strategy 11 A.) Three Tests of a Winning Strategy 11 B.) Building Shareholder Value 11 C.) Using the Five Forces Model 11 D.) Diversifying 12 Strategy Implementation 13 Structure 13 Instituting Best Practices/Continuous Improvement Programs 13 Reward System 15 Allocating Resources 15 Setting up Support Systems 16 Building Competencies and Capabilities 16 Staffing the Organization 17 References 18 Executive Summary Crocs, Incorporated is a global company that produces and retails footwear and apparel; their current corporate level strategy has been to diversify into related industries, while utilizing existing distribution channels. Because the footwear industry is volatile, and consumer trends, disposable income and other economic factors influence demand, we recommend that Croc’s explore unrelated industries, so that they may diversify that risk. Though the company enjoyed record profits in 2007, many of these environmental factors adversely impacted the company’s financial and strategic position. In order to most successfully diversify, we recommend that Crocs, Incorporated partner with a well-established firm in another industry. Since Croc’s patented Croslite material has many uses and advantages, the company should leverage that material in whatever industry it chooses to compete. We recommend that Crocs enter into a joint venture with Inter
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