Crocs Essay

The fraternitys original products include footwear and accessories which utilize its proprietary closed cell-resin, Croslite. It operates through triad segments Americas, Europe and Asia. *source from WSJ. The stock price (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 secure a start for Crocs to keep going down. 2. Management problems-Inventory Crocs is a colossal shoe-manufactory and international company. As mentioned in the case, in that location is some management problems live on in the company. As seen the chart of price above, such big quicksilver(a) may reflect something wrong in the company. As we analyze the chemical equilibrium sheet and income statement of Crocs. We find that the inventory turnover is a piffling low. That is a huge problem for Crocs.Because the low rate means there are too much surplus inventory in the company. darn shoes are fashionable items a nd Crocs is now offering large aggregate of crude styles to customers. Thus the surplus inventories do damage to the company. The chart beneath compares Crocs with related-field companies to see if the inventory turnover is really low. *source from www. sec. gov/ However, I opine Crocss inventory crisis may not be that serious. Because Crocs is an international company which focuses on seasonal products, the nimiety inventory can be digested exchange abroad.Besides, there is another way to handle this problem. According to Ron Snyder, President and chief executive officer of Crocs, theres really no risk in having excess inventory of our high-volume products, where the new products we want 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.