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3/21/08
Costco's "Diversion" Buying Strategy

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Crocs Inc. earlier this month became the latest company to freak out upon finding its hot selling shoes on the floors of Costco. Their arrival is apparently part of a long-standing strategy at Costco to look to secondary markets to acquire brands that won't sell directly to Costco. Crocs found some cases where it believes its products were sold indirectly to Costco. Do you think Costco's "diversion" buying strategy is savvy or a little sketchy?

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