Friday, April 12, 2019
Crocs Essay Example for Free
Crocs EssayThe companys indigenous products include footwear and accessories which utilize its proprietary closed cell-resin, Croslite. It operates through three segments Americas, Europe and Asia. *source from WSJ. The gunstock damage (from 1/1/2007 to now) shows the overall up and down trends to Crocs. The point indicates on Nov. 2007, Crocss price meltdown. Clearly, Nov 2007 is just a start for Crocs to keep going down. 2. Management problems-Inventory Crocs is a huge shoe-manufactory and international company. As mentioned in the case, there is some management problems exist in the company. As seen the chart of price above, much(prenominal) big volatile may reflect something wrong in the company. As we analyze the balance stable gear and income statement of Crocs. We find that the inventory turnover is a little depressed. That is a huge problem for Crocs.Because the low rate means there are too much otiose inventory in the company. small-arm shoes are fashionable ite ms and Crocs is now offering large amount of new styles to customers. Thus the surplus inventories do damage to the company. The chart below compares Crocs with related-field companies to see if the inventory turnover is really low. *source from www. sec. gov/ However, I think Crocss inventory crisis may not be that serious. Because Crocs is an international company which focuses on seasonal worker products, the excess inventory can be digested selling abroad.Besides, there is another way to handle this problem. harmonize to Ron Snyder, President and CEO of Crocs, theres really no risk in having excess inventory of our high-volume products, where the new products we loss to have excess capacity in place where, when a given style takes off in a season, we can quickly ramp up and take advantage of that new style.