Crocs Inc.
The core competency of Crocs Company, as mentioned in the book, is its flexible chain supply, which allows it to manufacture its products according to the demand of the market. Crocs’ executives focus on meeting the customer's demands at the right time and adapting to the change in demand. The model which guides them follows the notion, “If the products sell extremely well, we will build more in season and will be back on the shelves in a few weeks. And we’ll build even more, and even more, and even more, in that same season.” Synder, C.E.O of Crocs Company, first bought the manufacturer of Crocs shoes so that the company could control its own production. Then, through contract manufacturers in China, Crocs was able to produce shoes that could meet the global demand. It then set up a manufacturing plant in Brazil to serve Mexico and used a contract manufacturer in Romania to supply shoes in Europe. Moreover, it uses contract warehousing and distributors, which makes its distribution network vast. Its close relationships with retailers and distributors is also a core competency (Stanford Graduate School of Business, 2007).
Explain how the core competency addresses each of the three questions in the Core Competency test
Crocs address all the questions in the competency test. In the first question, Crocs is able to access a wide market through its distribution channels. The company has two manufacturing plants in the US and Brazil and two manufacturing contracts in Europe and Asia. It also makes use of contract warehousing and distributors. Moreover, it has close relationships with both large and small retailers who sell its products widely. In question 2, the competency contributes to the anticipated benefits. The shoe is light, odor-resistant, and comes in different colors according to the client’s liking. For question 3, the material used by the company, Corcslite is unique and hard to imitate, giving the company a competitive advantage.
What markets, that Crocs is not currently in, could their core competency be applied in?
Crocs have currently vested in the US, Asia, and Europe. Since it should venture into other continents now that it has a vast distribution network. Some of these countries include Canada, Australia, and South America. Crocs could also invest in orthopedic shoes and sell them at a more affordable price than similar shoes made from fiber.
References
Stanford Graduate School of Business. (2007). Crocs (A): Revolutionizing an industry’s supply
chain model for competitive advantage.
Braun, M. R., & Latham, S. F. (2014). Mastering Strategy: Workshops for Business Success.