Strategy in Action - Crocs Comes Back from the Dead

A cracking case study for business strategy lessons here - telling the story of the revival of Crocs, which recently looked like they were heading for an messy end…

Here is the article in the Guardian

Crocs became a fashion phenomenon in 2006 and 2007, but their fall from favour was almost as spectacular. A great example of how changes in fashion can first of all generate amazing increasese in demand and then, almost overnight, leave a business stranded with excess stocks, capacity and nursing huge losses.

The share price of Crocs fell from a high of $68 to around $1 as investors evaluated the impact of massive overtrading. The article describes some of the key business mistakes made by the previous Crocs management - can they spot and explain them.

Students should also read the article and summarise the basics of the turnaround strategy that has been followed so successfully by Crocs’ new management.

Why have they taken the decision they have?

Can Crocs succeed in the long-term in their mission to be “the global leader in moulded footwear design and development”?

Highly recommended.