- You can handle some of them within available time to do the business.- If think small, market size is too small to keep the business doing.
IM621 Value innovation with IT / Prof. Kim, Soung Hie OUTSMART ofJibbitz Team#6Yang Seong Soo Moon Sung Jin Son Hee Joo Yun Sahyuck Ham Seung Wan
2 Out SMART idea of JIBBITZ 0 Contents… Company Overview AS-IS innovation TO-BE innovation – our idea
3 Company Overview - JIBBITZ Ⅰ In 2005, Sheri Schmelzer spent the rest of the day filling holes in the family’s 12 pairs of Crocs. In February 2006, while Seri designed, Rich strategized. They decided to sell the charm through jibbitz.com When her husband, Rich came home, He could get the idea thathe could make big profitfrom that. And he’d filed a patent Rich soon found a way to get plastic Jibbitz manufactured in China. And they moved the operation out of their home one of Crocs' founders spotted Lexie’sJibbitz at the local pool, handed her his business card, and said, “Have your mom call me.” In December 2006, Crocs bought Jibbitz for $20 million, with the Schmelzers staying on board.
4 Company Overview – CROCS Ⅰ Crocs Inc. makes footwear for men, women, and children General info & Recent Highlight Product Features
Headquarter- 6328 Monarch Park Place Niwot, Colorado
regional headquarters - Niwot the Americas - Singapore Asia - the Hague Netherlands & Europe
Recent Highlight - Crocs Inc. signs with top teams in NASCAR (a new driver of earnings)
- Acquisition of new companies Jibbitz - 2007’s 4Q earnings up 236% year over year, $112 million The unique resin material, croslite Ideal for casual wear, as well as boating, hiking, fishing, and gardening A soft, lightweight, non-marking, slip & odor-resistant shoe CustomerSatisfaction 125 Countries
5 Company Overview – CROCS business status Ⅰ Crocs Inc. has made excellent growth but there are many risks Business Highlight Risks [Growth Rate(%) / 2007] 1 Seasonality 2 Decline in popularity [Distribution of Sales] 3 Competition
6 AS-IS Innovation - 2. Lessons From Jibbitz Ⅱ Control the speed Think Big Control the speed about the biz idea. Even if you have too much of good ideas, timely providing is more important. Rich Schmelzer understood that without the infrastructure to handle potential demand efficiently, he had to limit his commitments to customers Think big and consider the extension of biz model. Small market size make biz uneasy to keep doing. From the beginning, Jibbitz'sgrowth potential was limited only by the soaring growth of Crocs itself, but not all new ventures are so lucky.
7 AS-IS Innovation - 2. Lessons From Jibbitz Ⅱ Consider your infrastructure Think targeted marketing Do not neglect your biz infrastructure and consider reengineering Jibbitzheld its payroll to just 40 employees even as it grew in overseas markets and outsourced production to China. Keep your organization's structure Simple, then you can make your biz grow easily. Build a goal & think targeted marketing One way Rich Schmelzer kept operations under control was by relying on word-of-mouth marketing and Jibbitz.com; he avoided spending on traditional ads. Non-traditional marketing could be enough to Jibbits
AS-IS Innovation - 2. Lessons From Jibbitz Ⅱ Take the long view Sheri and Rich Schmelzer were planning Jibbitz product extensions into anything having holes, such as, anklets, wristbands and cell phone charms. Definitely you should think about the future of the company in order to survive in more competitive market & population declining environment. Product extension 8
9 TO-BE Innovation - Our Idea Ⅲ ERP Tryvertising