Crocs SWOT Analysis 2024: In-Depth Report With Infographics

Crocs is a brand of simplicity in the footwear industry. Through the power of its product quality and specific dominance, it has been growing over the past 22 years. Despite facing some struggles, Crocs has come back with more strength. In this article, we will identify all the strengths, weaknesses, opportunities and threats of this company by doing the Crocs SWOT analysis.

Crocs: Company Overview

Footwear company Crocs started in 2001 with uniquely designed clogs. Since then Crocs has sold over 700 million pairs of footwear making it one of the top brands in this industry.

Crocs got enlisted in NASDAQ in 2006. It has been growing at a constant pace despite huge stock price falls in 2007 and 2013. The company has an asset of over $1.5 billion and the net income was reported to be $0.557 billion in 2022 which shows a declining number than the previous year. However, it is one of the companies that made huge profits during the covid pandemic.

Product & Services of Crocs
Clogs | Boots | Sandals | Flip-Flops | Slides | Sneakers | Socks | Accessories

Crocs Competitors
Nike | Adidas | Fila | Puma | Converse | Dr Martens | Reebok

Did You Know?

The company name “Crocs” came from crocodiles. Because the clogs of this brand look like the snout of a crocodile from the side. They’re also using a crocodile snout as the symbol of the brand.

Strengths – Crocs SWOT Analysis

Established Brand Value: Crocs has been one of the premium brands in its segment. The brand has collaborated with some famous celebrities which strengthen their brand image. They have been consistent in creating a strong presence within the market competing with local brands. Their brand value will keep them ahead of their competitors. And that’s why the company can maintain premium pricing on their products.

High-Quality Product: Crocs focused on providing high-quality products from the very beginning. Their customers find these products comfortable, healthy, and durable. They use Croslite in making their clogs which makes them soft and light. It’s neither rubber nor plastic; it’s just a unique resin. Since 2018, they are using a better integrant called LiteRide which makes it more comfortable. There are also holes in their clogs for air to come in which is a good move to maintain hygiene.

A Huge Number of Sales: Since its beginning, Crocs has sold over 720 million pairs of products. And every year, the number of sales is increasing steadily. They maintained profit even during the covid situation. Their products are available in more than 90 countries worldwide. The company uses various channels like wholesale, outlets, and e-commerce for selling their products. Because of maintaining a diversified distribution channel, they can keep this flow.

Niche-Specific Dominance: Crocs have been marketed as boating shoes with unique features and designs. Despite producing new colors and graphics in their newer innovations, they are strictly focused on their niche. They have created a strong zone in dominating other local brands. It’s not easy for a company to be in the top ten nonathletic shoe companies by making only clogs and sandals which shows their operational effectiveness.

Organized Management: Being one of the top brands in nonathletic shoe companies, Crocs needs to be innovative to keep its position. The company has been successfully a market leader with their organized human resource management and skillful R&D division. Crocs tries to meet consumer demand. They have a strong presence on social media. Their fan base helps them to remain relevant in the market consistently and the Crocs management team is properly using this opportunity.

Weaknesses – Crocs SWOT Analysis

Strong Competition: Though Crocs has created a brand name, they are always facing huge competition and this competition is getting harder for them day by day. Giant shoe companies always try to diversify their product range and their customer base is a big motivator in that part. But this has always been a threat to the existence of a company like Crocs. Besides, the smaller brands are advancing at a rapid pace. So, it is a challenge for Crocs to maintain its position as before.

Downward Moving Revenue Per Product: Crocs are making progress every year, it’s true. But because of some extra costs like company-owned outlets, the revenue is not increasing with the number of sales. Rather sometimes, it’s showing a declining curve in the revenue. It’s common for a company. But lack of focus on this potential threat may become a threat in the future. Falling the share price of 47% is alarming for any company that Crocs has faced.

Small Product Range: Small product range has been a strong zone for Crocs in the past. But as the competition is getting harder, their lack of diversity in the products may be a trap for them. As people’s taste changes over time, their customers may find an alternative product and stick to it.

Environmental Threats: The world is growing environmental consciousness hugely. The environmentalists are very active and the people are positive about their moves. As Crocs is mainly based on nonbiodegradable ingredients, it is a threat to the environment. Crocs are trying to move towards making eco-friendly products, but it’s becoming a slow process and needs huge marketing to let their customers know about their move.

Sticking to The Old Culture: The market dominators are continuously making innovations to keep their steady growth. But Crocs is lagging. Their employees are not satisfied with their salary structure despite huge working pressure. The employees need to be more aware of the company’s strategy to be motivated. Crocs production is high, not effective for their slow decision-making process.

Opportunities – Crocs SWOT Analysis

Diversifying Products: Crocs has gained a brand name. But yet, their product range is very small and limited. Almost all the big brands have diversified their products list. Sometimes they get most sales from their side products. Crocs should test new products as well. That can be related to footwear or any product related to the boating niche. Depending on only one type of product is very risky as some big names in the market have already vanished from the market for this reason.

Rapid Decision-Making Process: Crocs should be faster in decision-making. The world is changing so fast and customer demand fluctuates day to day. If Crocs wants to bring a new product, they should do it fast. As the company has brand recognition, it wouldn’t be so risky. They should also think about expanding their market in other countries.

Creating Trendy Vibes: In this era of social media, the demand for a product increases overnight. Crocs should make the best use of this opportunity. The facts of gender equality and environmental consciousness are rising. Crocs should use these trends to satisfy customers’ demands.

Collaboration With Other Brands: Many big brands use this method. It may work well in the case of Crocs. This strategy creates brand recognition as well. Before entering a new country, Crocs can collaborate with an established brand in that country to test its acceptance.

Improvement of Relationship With Customers And Employees: The world is concerned about equality now. So, creating a friendly environment for the employees is very important. The employees need the motivation to do the best for their company. And this only happens when the company makes them feel cared for. This is true for the customers also. Crocs should focus on loyalty marketing.

Threats – Crocs SWOT Analysis

Growing Competition With Local Brands: Local brands are continuously creating innovations and campaigns that attract customers. As e-commerce is expanding, the barrier to local products is shrinking.

Facing Regulatory Changes: The Government is becoming strict on global companies and making new regulations on import-export, foreign investment, and so on. The burden of isolation of the American economy is becoming more evident also.

International Political Instability: Geopolitics is changing continuously. Things like the trade war between USA and China, the Brexit issue, Russian impact on the EU economy are always hampering the buying capacity of potential customers. This is a big threat to a company like Crocs.

Economical Challenges: The impact of the increased inflation rate is evident everywhere. It affects the number of sales and cost of production. A lower product life cycle is another problem.

The Downward Trend of Profit Margin: The increasing bargaining power of the e-commerce market has always been a threat. Besides, increased cost of production and lack of customer loyalty is affecting the profit margin. The shareholders can lose confidence if this condition persists for a long time.

[Bonus Infographic] SWOT Analysis of Crocs

Recommendations for Crocs

As we have discussed the SWOT analysis of Crocs, we already know the strong and weak points of Crocs. The condition is not that alarming for Crocs. It’s the overall condition of the market. But Crocs should make some changes to stay relevant in the market.

• Crocs should make product diversity as soon as possible. Creating new products will reduce the risk.
• They should work on increasing customer loyalty.
• Online presence should be stronger than ever. This one is a crucial need.
• They should target new markets and find new places for production. Their target should be to reduce production costs.
• They should keep their employees satisfied. Also using the latest technology will keep them ahead.

Frequently Asked Questions (FAQs)

Final Words on Crocs SWOT Analysis

So, we’re here. From the SWOT analysis of Crocs, it is observed that Crocs is doing well. But some failings can be a threat in the future as the market is changing rapidly. Crocs should fill those gaps rapidly as recommended.

References

• Wikipedia contributors. (n.d.). Crocs. Wikipedia.
• Celebrities Who Love Wearing Crocs. (n.d.). Footwear News.
• Segran, E. (2018, January 3). It’s Hard To Believe, But Crocs Just Got Even More Comfortable. FastCompany.
• Croc Countries / Countries Where Crocs Are Sold 2023. (n.d.). World Population Review.
• Palumbo, A. (2022, August 4). Crocs Stock Sinks on Lowered Outlook Despite Strong Results. Barron’s.
• Stanfield, S. (2022, June 18). Are Crocs Eco-Friendly? 14 Common Questions Answered (+3 Alternatives). Citizen Sustainable.
• Phung, I. (2021, October 17). The Power of Brand Collaborations. Boston University.
• Lloyd, N. (2022, June 8). How has Europe’s economy been affected by Russia’s war in Ukraine? Euronews.next.
• Koop, A. (2022, December 30). U.S. Inflation: How Much Have Prices Increased? Visual Capitalist.