LOGISTIC AND SUPPLY CHAIN

MANAGEMENT
CROCS (A): Revolutionizing an industry supply chain model for competitive
advantage

Arranged by: Annisa Aulia

015201400012
Hospitality Tourism Business 2014

President University
Chapter I
Introduction

1.1.

Background
Crocs is one of Footware designer manufacturers, that launched their brands product for
the first time in 2002 by selling Crocs brand casual plastic clogs with straps in a various of
solid and bright colors. Crocs has grown into a worldwide brand with more than 300
footwear styles and also they have sold more than 200 million pair of shoes in over 90
countries around the world. (University of Oregon Investment Group, 2014) Crocs has many
varieties of product such as boots, sandals, sneakers, flip, and clogs.
Crocs in the process has had various stories coloring on their journey. A variety of
strategies they apply to market their product in order to be able to compete with competitors.
Crocs is also constantly trying to develop their strategy by understanding more deeply what
the expectations of the consumers in terms of footwear that they want. By providing more
value, understand rightly what the market wants, as well as provide a fast response to their
customers demand have been made a source of profit for Crocs exceeds its competitors.
Crocs is against their competitor made strategies by making an investment in their
infrastructure and supply chain through 3 steps: Further vertical integration into materials;
Growth by acquisition; and Growth by product extension.

1.2.

Problem Identified
The traditional old system that Crocs use at the first can create a problem for the
retailers, such as overestimation and unsold stock and later loss, or even
underestimation that can create loss of potential profit.
Vertical integration of the raw material can create a problem, it related to the capital
spending, since vertically integrate its operation will further improve Crocs control
over supply chain.
Excess Capacity can be costly and unnecessarily, due to excess production in the
time selling goes down.

1.3.

Thesis Statement