Crocs: On Rough Water

This case introduces Ron Snyder, CEO of Crocs, Inc., in 2007, a few years after Crocs went public on the NASDAQ in the largest shoe offering ever. Investor excitement at the time had been palpable - the company had garnered a 48% premium above its initial offer price. Since that time, the stock had grown sixfold to its high just last month, at the end of October. Only a week ago, on November 1, the company’s stock price had plummeted, declining 36% in a single day. While Snyder did not see any reason for such a dramatic turn in a short time, he knew that the market could have a mind of its own. What concerned him was that a drop of this magnitude could make access to equity capital difficult at a time when capital was needed to fuel growth. At that moment, his task was one of both cognition and action - he would have to understand what was driving the shift in market perception and then he would have to respond to two audiences: a disaffected and skeptical equity market and a fearful workforce. Both these audiences needed Snyder to articulate a clear strategic direction for Crocs that was based on a sound and sustainable competitive advantage. Snyder’s ability or inability to make that case could have discernable impact on the market’s valuation and the performance of its workforce.