1. Introduction
2. Core competencies of Crocs
3. Exploitation of core competencies in the future
3.1. Further vertical integration into materials
3.2. Growth by acquisition
3.3. Growth by product extension
1. Introduction
From its foundation in 2002 on, the US-based footwear seller Crocs Inc. can truly tell a
story of success. With colorful shoes made out of plastic foam that were extremely
comfortable especially appealing to people that stand a lot during the day (doctors, nurses
etc.), Crocs seemed to have hit a niche. And, even though others tried to follow their
success by copying the product, the US footwear company knew how to make use of its
first mover advantage to the fullest. Not even four years after the first sale of the shoes in
2003, the company managed to report revenues of over $140 million in 2006. After Ronald
Snyder, former executive of an electronics company, had joined as the new CEO in 2005,
the company purchased the Canadian producer of the shoes, enabling them the proprietary
rights to the production formula of the most important ingredient of the shoe, the resin
“croslitetm”. This material was an essential ingredient for the plastic foam, making it feel
very comfortable on the foot and resistant to foot odor. With this step, Crocs’ was no
longer a mere seller of shoes but also operated actively in the production of its shoes in its
on production company renamed into “Foam Creations” set in Canada. It was also Snyder
who shortly afterwards led the company to a successful global launch. I don’t get it Flora ;)
could you rephrase that?
2. Core competencies of Crocs
Crocs’ recipe of success has many facets, some more and others less apparent. One of their
major assets is undoubtedly that the company knew how to build value on their biggest
core competency – a highly flexible supply chain. From the beginning on, customer
satisfaction was the company’s priority. Thus, order fulfillment was essential for Crocs
requiring precise planning in advance. The high level of availability from the beginning
also supported fast growth and loyalty of its customer base that expanded predominantly
through word-to-mouth recommendations. The capability of being able to react to new
customer orders as fast and flexible as possible was also what contrasted Crocs from its
competitors in the shoe industry, making them interesting not only for end customers but
also for retailers.
Nevertheless, Crocs knew that it could not rest on their initial success for too long.
