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Crocs Case Essay

1384 words - 6 pages

CROCS CASE STUDY
COMPETITION AND STRATEGY IN FASHION
SHIHUI FU
FEB 20TH

Crocs Case Study

What are Crock’s Core Competencies?
The rapidly success of Crocs thanks to its core competencies: flexible supply chain model, well controlled the product cost, and the extremely comfortable product character. First and foremost, the design of distribution and supply plan contribute to Croc as a core competitive advantage. The advanced and flexible supply chain could reduce a lot of time and cost for the whole process of business. The electronics contract manufacturing system allows the company to adjust the volume of production in-season. The retail store could provide the database ...view middle of the document...

Based on an excellent brand image, Crocs should continue to research and bring new product to enhance the demand from the customers. For example, Crocs could develop new material which has many points in common with plastic, easy to produce and comfortable. Crocs also could improve its technology of design and manufacturing to introduce new product made by exclusive materials. There are many benefit of pursuing this strategy, due to the loyal customer based, it will reduce time and money to advertising the brand position; Based on the previous experience of Crocs, the company could find the path to explore new material to match the customers’ demand easily, which reduce the market risk relatively. Innovational material will enhance the brand image aggressively and strengthen the brand position as a comfortable shoes provider in the footwear industry. From the other perspective, Crocs could also achieve its growth through acquisition. Crocs already had some brand acquisition experience with Jibbitz, which is a shoes accessories supplier. Crocs could take advantage of this acquisition action to improve the design to be diversity. Moreover, Crocs could expand its business to shoes accessory segment, that will help Crocs gain the market share from a different aspect.
Additionally, product line extension is a traditional brand management strategy, which Crocs could consider to adopt in the next step. To introduce new product line could create more opportunity to satisfy the customers and make profit. For example, Crocs already established its product line to clothes for individuals who preferred the easy-to-wear and comfortable clothes. Because Crocs already build its distribution and supply chain model, the brand name has been popular in the market, this approach could reduce the market effort and retail store expense compare to the competitor.
To what degree do the alternatives in Question 2 fit the company’s core competencies, and to what degree do they defocus the company away from its core competencies?
Crocs achieves big success because of its core product, the plastic and comfortable shoes, to research and to develop new material could allow the brand create new product category. The different product categories could also focus on the core competencies. New material and new type of the shoes could attract more customers to consume the brand, the sales of company will increase considerably. It will be expressive for customer to perceive the brand knowledge, what is more, the future expectation for the brand from the customers will be promoted. The core competencies of Crocs could allow the brand become more popular and stable at its position, that would help the brand to grow in a positive way in the future.
Crocs starts as a shoe specialist in the market place, if the company decides to expand the business into the shoe accessory market segment and make product extension to clothes and hats, the brand distraction will...

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