Operation Mangement Case Crocs Group 2

GROUP 2

Bonny Ariel SharonClaudya Lita GraceDera HafiyyanDesi LusianingtyasHerlin Syahrita

CROCS : Revolutionizing an industry’s supply chain model for competitive advantage

CROCS Core CoMpetencies

EXPLOIT THESE COMPETENCES IN THE FUTURE

To what degree do the alternatives in Question 2 fit the company's core competences, and to what degree do they defocus the company away from its core competences?

Vertical

integration

Economies of scale

Effective competitive barrier to entry

Higher degree of control over value chain

Better position to negotiate with suppliers and buyers.

Growth by

Acquisition

Access to developed technologies

Reduction in competition and defense against substitute

products

Ability to meet varied customer expectations

Growth by Product

Extension

Economies of scale and scope

Ability to meet customer expectations

Making product obsolete before competition catches up and

copies design

How should Crocs plan its production and inventory? How do the company's gross margins affect this decision?

1. Focus on producing molded shoes in China

implemented the global inventory planning system (ERP)effectively managing its production and inventory levels

2. Higher margins can afford to keep more inventories in stock and have a lower turnover rate

Highest margins 56.5% and the lowest inventory turnover at 3.5%. The margin also gives access to more cash on hand

THANK YOU