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Crocs Case

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Direccion estrategica y control de gestion
Yara sleiman 19/12/2014 crocs case
Direccion estrategica y control de gestion
Yara sleiman 19/12/2014 crocs case

Introduction
Crocs was created by three friends Scott Seamans, Lyndon "Duke" Hanson and George Boedecker in 2003 after discovering a comfortable plastic that was light weighted, easy to wash and did not produce any odors.
Crocs produced shoes in different categories from sandals to flip flops to heels for men, women and children. They produced different styles and categories up to 300 four-season footwear styles with many colors.
Rapidly this company grew and evolved and was able to sell around 100 million pairs in seven years. The innovative technology of having such comfortable material in so many different colors that can last long enough is what was advantageous for this firm at the beginning of its business. They achieved a huge success in the US footwear with around $49.3 billion in annual sales. They expanded their market and their production went global by owning manufacturing plants in Mexico and China and distribution centers in Japan and Netherlands. Even though crocs were popular in the US but actually more than half of the production was sold outside the US.
Just like any other trend, this fashion had to come to an end. Consumers were not interested in buying crocs anymore and the sales dropped and the recession started. The demand fell and inventories were stacked and unsold and the losses started to accumulate and the debts of the company increased.
External Factors
Each company has its own internal and external factors that affect its strategy. External factors are the factors that the company do not have any control over like government regulations or change in prices or preferences of consumers.
What is important for each company is to know how to survive these external factors

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