The rapid growth of Crocs Retail Inc

Modified: 1st Jan 2015
Wordcount: 1944 words

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This Company Born in Boulder, Colorado in 2002. Crocs Footwear Company can be found across the globe and in more than 120 styles for men, women and children. With distinct collections, Crocs offers colorful, lightweight comfort for any occasion and every season.

All Crocs shoes are uniquely design and manufactured using the company’s property closed-cell resin, Croslite, a technology that gives each pair of shoes the soft, comfortable, lightweight, non-marking and odor-resistant qualities that Crocs wearers know and love.



Increase in the number of retail stores selling our products new product offerings increased sales at retail locations owned by us and through our web stores, and expansion of direct sales into new markets, including China, Brazil and India. Enhance and further develop production capacity and global infrastructure to support the growth of the business and retail sales.


The short term goal is every day to sell 20 percent more than last year.

The long term goal is to remain as one of the most solid companies in the market and grow.


Crocs’ strategy is to understand their consumers through the analysis of known and behavioral attributes, and use this to proactively engage them when and where they are through timely mobile communications. The company has segmented its distribution strategy in order to maintain price integrity and enhance brand equity.┬áThe company does not sell or have plans to sell its Crocs branded merchandise to Costco Wholesale Corporation, or any other wholesale company.

Social Responsibility

Crocs Cares

Crocs as a company understand the need to help where they can, and their goal is to establish comprehensive socially responsible programs that would allow creating a positive impact on the environment, employees, and local and global communities.

As a global leader in casual footwear, Crocs, Inc. recognizes the responsibility they have to their employees and the global communities they serve. Crocs strives to maintain a spirit of “giving back” as a part of the Crocs culture and worldwide reputation. With the help of their donation partners such as Feed The Children, Brothers Brother Foundation, UNICEF, and World Emergency Relief.


Kind of Company:

The company is decentralized. This system allows the company to take advantage of the division of labor and shared decision making with its members. It also allows employees to improve their performance and poor areas without immediate approval of the direction of the company. Another advantage is that managers of business areas can use their knowledge, skills and experience to optimize outcomes in their areas.

This company has a code of business that defines a code of ethics as written standards designed to deter wrongdoing and promote:

-Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships.

-Full, fair, accurate, timely, and understandable disclosure in report and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant.

-Compliance with applicable governmental laws, rules and regulations.

-The prompt internal reporting to an appropriate person or persons identified in the code of violations of the code, and

-Accountability for adherence to the code.

The Code applies to all Company directors, officers, employees, and representatives, including but not limited to consultants, agents and advisors, wherever they are located and whether they work for the Company on a full or part -time basic.

Organizational Chart:

The company has a group of investors, a chief executive officer, a chief financial officer and chief administrative officer and legal. Also consists of six regional managers, four district managers, marketing Leaders and a manager in each store.

Operation Department: Crocs has its own operations department and operates from the headquarters of the Corporation who is in Colorado. From there they have control of all these departments and are responsible for distributing the new information to all the stores in the U.S. and Puerto Rico through a weekly statement, in that this is happening with the company.

The operations department is structured as follows:

Warehouse Department: Is the place where all the merchandise is received and distributed to the stores for future sale.

HR Department: Takes care to select, recruit, train, employ and retain employees of the company.

Legal Department: Is the entity responsible for providing legal advice on all units of the company, responsible for safeguarding and defending its own interests.

Accounting Department: Is responsible for implementing and operating standards, systems and procedures to ensure financial operations of the company budget.

Inventory Department: In this department the company contracted services of WIS annually to do the inventory.



There are several ways in which the company encourages its employees, one of which is to make your employees feel in a safe and reliable and to achieve this will keep them abreast of what is happening or will happen to the company. This information will make it come through managers or by a weekly statement. This release is written in simple language and easy for everyone to understand and feel part of the company. Also use the feedback as motivation this way the employee can realize its growth within the company.

On the economic front are 2 incentives.

The first is called gold, silver and bronze, in which the employee can make some extra money each month. They can be from 500 to 100 dollars.

The second is the sale of accessories in which the employee decides how much you want to win because the mini is 10% and has no ceiling.

Recognize the successes achieved.

Appreciate the good work and effort that employees make to achieve the goals of the company.

Leading and Communication

The key to the success of regional and district managers of the company is communication.

They use conference calls as your best tool for communication and thus kept informed again, and again managers and they also are aware that is happening with each and every one of its stores in the U.S. and Puerto Rico.

The horizontal boundaries are between the functions and discipline. The company aims to break these limits and so to make the team work is maximized.


This is a company that is subject to permanent changes in the strategies of sales and changes in collections of their shoes. That is why they are always alert through a number of tools to keep under control the effects that can cause these changes.

Control their sales annually, semiannually, monthly, weekly and daily.

We can draw the control weekly. Each manager will send a weekly report of

How much they are sold in the week. (Sunday through Saturday).

What was the goal of the week?

What was the goal of the week last year?

How many hours were used during the week?

How many hours had authorized according to the goal of the week.

Daily stores have a goal and depending on the location are the goal may vary. In some may be could be 20% more than last year and in others it could be 60% more than last year.

Another way to control is the hours that managers can use during the week. For this the company has the Labor Matrix is nothing more than a relationship between sales and times. So you do if the goal of the week is 30 thousand dollars the manager has authorized 245 hours for the week. All shops must comply with this requirement of the company, any change to be notified to the district manager with a previous explanation.

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Measurement and Comparison:

Daily from corporate send a report to the sales of the day before they call them Comp Report. In this report are all stores. They gather the following information the sales of the current day 2010 on dollar and percent, the previous day-last year 2009, total amount of the month, and percent of change. With this information they can measure this year to last year and realize if stores completed the goal of the day, if they are selling more than the previous year, and thus can make comparisons.

Another system of measurement is the PL Summary by Location. In this report are all names of products each location sells, lets them know how much they have sold to date and what the product is selling more. Next to each product can see how much has been sold in dollars and the percentage that this product represents sales to that day.

It is a good measure of what the product was causing more impact among customers and what is the least liked. This information is easier to know which product should continue and which not. Or what they can do to help the least sell to become the top seller.


After having considered all these important points they know if they are achieving compliance with the goals and objectives of the company or not. And depending on the results will have to take action, perhaps offering promotions to customers to encourage them to buy.

Costs were lowered by the elimination of standard box packaging for individual pairs of shoes.

They were also decreased by the reduction of stock-keeping units (fewer styles, sizes, etc.) and by the use of inexpensive plastic resin material compared to leather and other fabrics. In addition, the plastic resin material allowed Crocs to lower manufacturing costs because the product could be made faster and cheaper using injection molding machines compared to traditional labor intensive methods. When other shoe manufacturers such as Decker’s Outdoor

Corporation and Timberland had Cost of Sales averaging 54% in 2006 and 2007; Crocs’ Cost of Sales averaged 42%10. Over time, Crocs evolved from using mostly contract manufacturers (standard industry procedure) to also producing its own footwear in facilities in multiple countries around the world (e.g., Mexico, Italy)11. This speedy production, also made it possible for Crocs to revolutionize the traditional supply chain approach and make its shoes available to a wide range of retailers and consumers within weeks, not months. Crocs were able to build its brand and build momentum with word-of-mouth marketing without traditional high advertising costs.

Modificarlo para conclusion

In summary, the story of Crocs, Inc., is a great example of a company that created a hugely successful new business by redefining traditional red ocean footwear industry boundaries to create an attractive, blue ocean. After launching in the U.S. in 2002, the company quickly grew to achieve a global presence by staying true for a time to the principles of blue ocean strategy value innovation: maintaining a low cost structure through use of inexpensive materials and efficient, low cost production while simultaneously creating a leap in buyer value through colorful, unique casual shoes that were comfortable, fashionable and fun to wear. The story also highlights how over time, abandoning blue ocean strategy principles and focus can lead to declining results and negative performance.


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