Crocs Company Analysis

Crocs Inc. is a U.S based shoe designer, manufacturer and retailer. It was founded in 2002 by three friends - Lyndon “Duke” Hanson, Scott Seamans and George Boedecker. Crocs shoes are manufactured from “Croslite”. They are comfortable & light weight, odour resistant, do not skid, easy to wash and do not mark surfaces. Owing to the properties of the resin, Croslite, the shoes could be manufactured in any colour. The company, however, chose bold colours.

The Athletic shoe industry had its start in 1892 when U.S Rubber company invented Keds and by

Sportsman Shoes has been a leader in the shoe industry for more than thirty years. Sportsman manufactures and sells athletic shoes for all types of sports. The company has pursued a low-cost strategy in order to sustain their success. They sell a limited number of shoe designs and have held costs low through manufacturing efficiency and standardized operations. However, the past five years have been a struggle at Sportsman. The shoe market has seen a rise in the availability of low-cost imported shoes that has threatened Sportsman’s competitive position. As a result, company executives have decided it is time for a strategy shift.

Obviously, there is a big number of driving forces in the athletic footwear industry. Each of these driving forces has different impacts—some of them can have a more considerable effect than others on figuring out how much cross-company differences influence market shares and a number of units sold. The first line of most influential factors includes comparative prices, S/Q ratings, and a number of models offered among the footwear competitors. These three most important competitive forces affect customer decisions of which athletic footwear brand to choose. Furthermore, the decisions of customers whether to purchase one brand or another are also influenced by such forces as advertising, celebrity endorsements, the number of independent retail

With revenue from Crocs shoe sales reaching to $680 million in 2007, it is clear that the company has developed a successful strategy. Not all of the success can be contributed to the design of the product. Although their products were in high demand, there are more underlying factors that have paved the way for Crocs to be competitive in the shoe market. Crocs’ supply chain design and use of vertical integration revolutionized speed and quality of order fulfillment.

Customers make purchasing decisions based on the information they have among products and the values of goods a company offers. For that reason, companies have to promote their products to increase products awareness. In order to achieve organizational goals, companies must understand the market’s needs to ensure the success of their businesses. Such information can be gained through research. The industry that will form the basis of this paper is Western Canadian Shoe Association. The three brands under study are Reebok, Adidas, and Nike.

Current Crocs’ multiple is 27.74. Comparable companies that apprear to be good match to Crocs at the time of the case are Under Armour (32.00), Zumiez (21.27) and Deckers Outdoor (20.21).

- Compare with Crocs revenues leaped from $1.2 million in 2002 to $109 million in 2006, and it had developed more than 30 shoe models in 30 distinct colors, sold in 40 countries, Holey Soles revenue in 2006 with $10 million and only 6 shoe models, 25 colors and 23 countries, Holey Soles have space to capture the share market from Crocs by more aggressive sales marketing.

For consumer customers, Crocs designed a broad and extensive distribution system so its shoes were available in a variety of retail outlets from specialty stores to department stores and large shoe store chains. Marketing & Promotion Crocs used creative merchandising (out-of-box vertical displays).

Many of the big established shoe brands have seen consolidation and hence they have become bigger and more powerful in terms of competing with the rest.

The athletic shoe industry will be first analyzed by the Porter’s Five Forces framework. The well-known Porter’s Five Forces is a model that analyzes an industry and helps firms develop a business strategy. The five forces model focuses on six forces that will determine the attractiveness of this industry: (1) the risk of entry by potential competitors, (2) the intensity of rivalry among established companies within an industry, (3) the bargaining power of buyers, (4) the bargaining power of suppliers, (5) the closeness of substitutes to an industry 's products, and (6) the power of complement providers (Hill, Jones, & Schilling, 2015).

The depth of the product line and buying power created by the potential volume makes the threat of suppliers a relative non-issue.

Market analysis C & J Clarks LtdCONTENTSEXECUTIVE SUMMARY1.INTRODUCTION2.COMPANY HISTORY AND PROFILE2.1C&J Clark2.2History2.3Manufacturing2.4Range of Shoes2.5 K Shoes3.MARKET ANALYSISA. MICRO ENVIRONMENT3.1 Market Data3.2Competition3.3Consumer demandB. MACRO ENVIRONMENT3.4Political3.5Social3.6Technological3.7Economic4.SWOT ANALYSIS5.IDENTIFICATIONS OF STRATEGIC ALTERNATIVES6.RECOMMENDATIONS6.1Short Term6.2Medium Term6.3Long TermEXECUTIVE SUMMARYI have been asked by C & J Clark Limited (Clarks) to prepare a report which would include a market analysis of the UK footwear industry and to propose a number of strategic recommendations which would ensure that Clarks secures its short, medium and long term future as the market leader in the shoe

The report is about Nike, regarding the case study. The report elaborates on the aspects including buyer behaviour, brand image, consumer decision making, and marketing research techniques applicable to Nike. 3.0 Introduction Nike is the worlds number one sports shoe company. In the US Nike dominates 35% (source: see appendices) of the sports shoe market and its products are sold in more than 140

The power of buyer is high as there is an overabundance of retailers in the market. For instance, Zara, Gap and Uniqlo. (Johnson et al., 2014, pg 576) This implied that customers have a wide variety of stores to shop around for bargainable apparel at the best prices. This leads the buyers to switch from one brand to another effortlessly.