Products of Crocs include footwear and accessories that utilize proprietary closed-cell resin, called Croslite, as well as casual lifestyle footwear that use a range of materials.
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Strength in the SWOT Analysis of Crocs :
- Association with celebrities: Company has a strong presence in the social media with more than 5 million followers across digital media. Crocs have been associated with global celebrities such as Drew Barrymore, John Cena, Yoona Lim and Henry Lau in the recent times.
- Niche Product Range: The 10th largest non-athletic brand, Crocs focus on a limited number of product offerings such as clogs, sandals like flips & slides in its product portfolio which is helping the company in catering to the needs of the specific segment of customers.
- Integrated Value delivery System: Synergies along its value delivery channel has helped the company in selling more than 55+ million pairs in 2016 through wholesale, company-owned retail outlets and e-commerce websites. It closely works with its logistics entities for operational efficiency and optimizing its distribution channel.
- Design of its footwear: Crocs have the wide range of products and is designed to be comfortable and waterproof.
Weaknesses in the SWOT Analysis of Crocs :
- Company Owned Outlets: Although the company in the footwear industry operates with the business model of franchisee as well as company-owned outlets Crocs operates 556 company-owned outlets which imply that company has created the redundant assets which may affect its profitability.
- Product Myopia: Companies like Nike, Adidas, and others offers a wide range of footwear from casual wear, sportswear to formal wear but Crocs being present in the only non-athletic segment may affect its profitability in the competitive market.
- Safety Issues: The quality of material used by the Crocs is non-biodegradable and is unsafe as it slips on the surface and has other Health issues.
Opportunities in the SWOT Analysis of Crocs :
- Diversification to the other business segment: Since the company is operating in only non-athletic business segments, diversifying to other segments and interrelated businesses like travel bags, purse etc. will help the company increased its profitability.
- Changing Lifestyle: With the saturation of developed economies & changing taste & preferences, literacy level of the developing economies had resulted into the steep demand for footwear.
- Market development: Due to high competition in the developed & developing nations entering into new markets will be the only way to succeed in the future.
- Product line development: Expanding its product line will open a new set of opportunities while at the same time it will help in differentiating itself from the competitors.
- Backward integration: Integrating its value chain through backward integration will help the company in securing its patent rights & also integrate its R&D.
Threats in the SWOT Analysis of Crocs :
- Competition from the local players: Although Crocs is a global brand it is facing fierce competition from the counterfeit products, Stylish products of other brands like Wolverine World Wide, Sketchers USA, Nike Inc., Reebok, Lotto, and Adidas, etc.
- Short Lifecycle: Continuously changing lifestyle & fashion resulting into short life Cycle of the designs of the footwear are a major threat as far as industry is concerned.
- Supplier Dominancy: Since major of its production is outsourced; Suppliers and value-chain entities have more bargaining power over the company.
- Government Regulations: Import restrictions, foreign investment policies of the government, duty& tariffs plays a critical role in the success of the company and affect the operation and business of the company in the long run.
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