Crocs Case Study

Crocs launched in 2003 grew rapidly in terms of scope and profitability with its own value chain management system. Crocs is a traditional model that quickly acquired and established a worldwide network of supply, manufacturing, production and delivery systems. This allows Crocs to minimize costs, maximize efficiency, and deliver the highest value to customers. In this customer-centric framework, Crocs has created a unique global value management system that has advantages in execution and concentration compared to traditional supply chain systems.

Crocs is a famous footwear company. Crocs is known for its unique design and bright products. Crocs has its own product manufacturer, supplier and designer. The product provides lightweight, comfortable and healthy footwear for men, women and children. Crocs sells products through online stores, domestic and foreign retailers. Products are sold in 125 countries with designs in more than 40 countries. Since its founding, Crocs has sold more than 140 million pairs of shoes.

Crocs, Inc. was founded in Colorado, USA in 2002. The company was originally manufacture, designer and retailer of Crocs brand men's, women's, children's footwear products. Crocs stands out in the footwear industry with its innovative technology of competitors. It is made of foamed resin called Crosliteâ; it has a "distinctive" appearance and brilliant colors to create a soft, comfortable, light, odorless non-slip product. Over 40 products are sold in 125 countries worldwide. Crocs had the highest gross margin of 56.5% in 2006, Nike and Timberland had a gross profit margin of 43.7% and 47.3%, respectively. CEO Ronald Snyder showed amazing growth under the guidance of Ronald Snyder before Crocs began to suffer major losses due to the recession in 2008.

The average cost of sales of the company and Timberland in 2006 and 2007 was 54%, Crocs' average cost of sales was 42% 10 on average. Over time, Crocs has grown from a major consignment manufacturer (standard industry program) to a global factory (eg Mexico, Italy) 11 to manufacture our own footwear. With this rapid production, Crocus revolutionized the traditional supply chain approach and it was possible to deliver that shoes to a wide range of retailers and consumers in a few weeks rather than months. Crocs builds its own brand without increasing traditional high advertising costs and can increase momentum through word of mouth marketing.