STRATEGIC MANAGEMENT

Case Analysis:

CROCS, INC., 2013

SWOT ANALYSIS & TOWS MATRIX

Estolano, Jan Andre

Leynes, Paul Vincent
Torino, Froilan

June 2023
 Crocs, Inc., Case Analysis

STRENGTHS WEAKNESSES

S1 W1

Unmatched comfort: Crocs shoes are known for Awkward appearance: While comfort is a
their exceptional comfort, thanks to the strength, the unconventional and sometimes
proprietary material called Croslite. clumsy look of Crocs shoes may deter some
fashion-conscious consumers.
S2
W2
Strong brand presence: Crocs is a well-known
and recognized brand in the casual footwear Limited color options: Most shoe styles are limited
market. to a maximum of six colors or two-color
combinations, which may limit customer choices.
S3
W3
Strategic alliances: Crocs has partnerships with
the American Nurses Association and produces Specific range of target consumers focusing on
shoes for the healthcare and airline industries, middle class
which provides a competitive edge.

S4

Clear and defined mission, brand, mindset, and

system

S5

Large customer base: Crocs has sold over 200

million pairs of shoes in more than 90 countries.

S6 Eco-friendly material

S7 Cheaper cost of sales

S8 Producing own foot ware in their own facility

 OPPORTUNITIES THREATS

O1 T1

Expansion into new markets: Crocs can explore Intense competition: Crocs faces competition
untapped markets and expand its customer base from other footwear companies, such as Columbia
by introducing new styles and targeting specific Sportswear Company, which has a strong
customer needs. presence in the Indian market

O2 T2

Innovation and product development: Crocs Counterfeit products: The availability of "croc-
can invest in research and development to offs" or imitation Crocs in the market can
improve existing products and develop new negatively impact the sales and reputation of the
materials and technologies to enhance comfort brand.
and style.
T3
O3
Economic downturns: Crocs' stock price declined
Increased online sales: Crocs can capitalize on during the global economic downturn,
the growing e-commerce market and leverage highlighting its vulnerability to economic
its web stores to increase online sales and reach fluctuations.
a wider audience.
T4

Negative press and fashion trends: Crocs has faced

criticism from fashion experts and negative press,
which can influence consumer perception and
purchasing decisions.

Comfort, fun, and style are the takeaways of Crocs avid. Throughout the years, this footwear
brand has established itself in the market with its unique and colorful slippers, sandals, and clogs.
Even if several companies are trying to imitate and pirate their products, the unmatched comfort
and strong brand presence stabilized its position in the industry. Furthermore, what makes Crocs
stand out from others is their eco-friendly materials and own production facilities. This factor
paved way for a cheaper cost of sales which in turn made the company earn more and expand
its customer base in different countries.

Amid the ongoing success of the brand, there are still factors that they need to improve. Some
of its weak points are the awkward appearance, limited color selection, and specified range of
target consumers. Fashion conscious consumers find crocs appearance to be unconventional and
weird. Also, the limited color selection and combination may cause clients to be fed up. Lastly,
since the price of their products ranges from 2,000 to 5,000 pesos, their target market is confined
to the middle and upper class. They could strategize to offer promotions and discounts so more
clients can afford them.

When it comes to the opportunities that awaits Crocs, tapping more customer bases and
expanding its market through innovation and product development is possible. One way to make
this happen is by penetrating the online market. Since platforms such as Shopee, Lazada, and
TikTok Shops are now on their peaks, Crocs could maximize this area. Also, leveraging its own
online store is an option. Direct sales via online provides more profit for the company.

To continue stability and growth in the industry, the company should look out for these threats.
First, the intense competition should challenge them to strive for more. The presented strengths
and opportunities could make them survive in the industry. Then, being aware of the imitations
and pirated products is also crucial. They should make sure of the authenticity and safety features
of their products. Lastly, they should continue their brand promotions and advocacies to negate
the criticism and negative feedback. Providing awareness in the public can help the brand to
continue grow and reap success.
 Strategic Plan for Crocs, Inc.

Strength Weaknesses
1. Unmatched comfort 1. Awkward appearance
2. Strong brand presence 2. Limited color options: Most
3. Strategic alliances shoe styles
TOWS 4. Clear and defined mission, 3. Specific range of target
brand, mindset, and consumers
MATRIX system
5. Large customer base
6. Eco-friendly material
7. Cheaper cost of sales
8. Producing own foot ware
in their own facility

Strengths vs Opportunities Weaknesses vs Opportunities

S1 vs O1 – Consistency with the W1 vs O1 – Expansion into new

unmatched comfort that the markets to downward the populace of
products provide could be the key fashion-conscious consumers.
to expanding into new markets.
W2 vs O2 – More innovation and
S2 vs O2 – Increasing the offerings product development to broaden color
through innovation and product options of different crocs products to
development can further stabilize have various customer choices.
Opportunities the strong brand presence of the
1. Expansion into company. Aside from sandals, W3 vs O3 – Utilize online platforms and
new markets slippers, and clogs, Crocs could also e-commerce to market its products
2. Innovation and explore into sports shoes and other from various customers
product rubber products.
development
3. Increased S3 vs O3 – Penetrating the online
online sales selling platforms could help Crocs
increase their profits. Developing
their own online store is also an
innovative idea to promote direct
sales and provide convenience for
its customers.
 Strengths vs Threats Weaknesses vs Threats

S1 vs T1 – Continuous and extensive W1 vs T1 – Catering the fashion and

promotion of the unmatched style needs and wants of the
comfort that the company provides consumers could provide a competitive
for its consumers is a key to advantage for the company. They must
managing the intense competition accept comments, suggestions, and
Threats in the industry. feedback from the clients and integrate
them with their products.
1. Intense S2 vs T2 – Counterfeit products are
competition everywhere but maximizing their W2 vs T3 – By providing more color
2. Counterfeit strong brand presence through selections and combinations, Crocs
products unique offerings could lessen the could manage to separate its identity
3. Economic
effect of this threat. from counterfeit products. They could
downturns
4. Negative press also put some authenticity features to
and fashion S3 vs T3 – Sealing new alliances and assure the clients of the quality and
trends agreements with other industries originality.
aside from the Medical and Airline
fields will help the company to W3 vs T3 – The company could try to
resist any economic downturns. capture more markets by giving more
discounts, promos, and deals to the
public. Since the economy is uncertain,
more customers provide more financial
stability for the company.

The strategies formulated and suggested in the TOWS Matrix are focused on expanding its
market through penetration of online markets, managing the intense competition by innovating
and developing its products, and continuing its strength of providing unmatched comfort and
unique styes. With these actions, Crocs could also prepare its company for any economic
downturn and unexpected situations. Since counterfeit products are present in the market,
unique colorways and combinations and adding authenticity features can help the company to
negate the effect of this competitors. Although they were able to establish the level of quality,
satisfaction, and creativity through the years, continuous efforts, and promotions are still crucial
to preserving the brand. No doubt, Crocs continues to reap success and achieve growth as
evidenced by more sales and store expansions. But, as the competition in the industry gets more
intense, being proactive could help Crocs stay in the market for more fruitful years.