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2 pages/β‰ˆ550 words
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Style:
APA
Subject:
Management
Type:
Case Study
Language:
English (U.S.)
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Topic:

TOC-Based System and Core Competencies of Crocs

Case Study Instructions:

Read the article, Then write the paper:
Supply Chain Alignment Adaptability and Agility - Crocs: Revolutionizing an Industry’s Supply Chain for Competitive Advantage – Stanford Graduate School of Business 2007.
Focus:
Studying a supply chain company in a business that typically relies on ‘push’. The important thing to emphasize is how they have effectively built a very responsive TOC-based system in an industry where that is very hard to do.
Key questions to consider:
• What are Croc’s core competencies?
• How do they exploit these competencies in the future? Consider the following alternatives:
o Further vertical integration into materials.
o Growth by acquisition
o Growth by product extension
• 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?
• How should Crocs plan its production and inventory? How do the company’s gross margins affect this decision?

Case Study Sample Content Preview:

Case Study
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The TOC-based system employed by Crocs originates from the Theory of Constraints (TOC), which concentrates on reducing the throughput time by optimally exploiting bottlenecks and constraints to improve the efficiency of a supply chain system. Crocs built its TOC-based system using various competencies such as positive relationships with retailers and reducing expenses by producing shoes in-house. However, Crocs' main competency that reflects its TOC-based system efficiency is the integrated and flexible supply chain that allows the company to respond to customer demands. Crocs' supply chain also gives it the ability to acquire and distribute a niche company's products to the international market while also reducing lead time and shipping expenses.
Other core competencies include a focus on niche stores as well as word of mouth advertising. By focusing on niche stores, more emphasis was placed on sending the agents to specific stores to showcase their business. In this manner, they could display what they offer and answer any questions that arose. When it comes to word of mouth advertising and marketing, the essence was to create some sense of buzz within the target market. This has ensured that there is a strong brand presence as well as recognition. Its ability to provide service to small retailers is also a boon for the business since these retailers play a crucial role in the overall growth of the business.
Crocs' competencies can be used in a variety of ways in the future. Ve...
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