Crocs: Revolutionizing an Industry’s Supply Chain Model for Competitive Advantage
Q 1) What are Crocs core competencies?
Ans: I think that some of the core competencies of Crocs are as follows:
a. Well co-ordinated supply chain: This is one thing that sets apart Crocs from the other show manufacturers. After acquiring Foam Creations, they actively opened more production stores in different parts of the world and currently have a capacity which is much larger than the demand expected. This helps them fulfill the orders which are generated very fast. Also, because of this, they have the capability to manage their supply more efficiently depending on the demand of the market. For example, ...view middle of the document...
Further vertical integration into materials
b. Growth by acquisition
c. Growth by product extension
To what degree do the alternatives fit the company’s core competencies and to what degree do they defocus the company away froim its core competencies?
Ans: I would recommend Crocs to expand by growing into other product extensions. This is because, even after increasing its sales in the five years after it was started, I believe Crocs did not diversify enough into other products. In this age of financial and economic upheaval, I believe that only firms which have diversified sufficiently will be able to survive in the long run. So, expanding into other areas is of critical importance to Crocs in the long run. Most of the products of Crocs are doing well and Crocs has this significant stregnth of testing products in various places without facing losses due to under or over production. This method of product extension hence is in line with the core competencies of Crocs of excellent supply chain and the superior raw materials used.
Personally, I don’t think that expanding only by acquisition is a good idea in the long run. Because, more often than not, the strategic assets of the firm being acquired and the firm that is...