A CHI SI RIVOLGE CROCS?

Men, women, and children: Crocs offers products for individuals of all ages.

Occasional and active individuals: It appeals to both those seeking comfort and those with an active
lifestyle.

Healthcare professionals: Known for their comfort during long shifts, they are preferred by healthcare
workers.

Outdoor enthusiasts: Suitable for outdoor activities and adventures.

Fashion-conscious consumers: Some customers appreciate Crocs for their unique design.

Water and beachgoers: Their water-resistant properties make them popular for water-related activities.

Comfort seekers: Attracts those looking for comfortable footwear options.

STRATEGY WHERE IT SELL

Crocs employs a comprehensive distribution strategy to reach customers, including:

E-commerce: Selling products through the official website and online marketplaces.

Brick-and-mortar stores: Managing physical retail stores and outlets worldwide.

Wholesale partnerships: Collaborating with various retailers and partners.

Licensing agreements: Partnering with other brands and entities for co-branded products.

Marketing and branding efforts: Promoting products through marketing campaigns and brand recognition.

VALUE PROPOSITIONS:

Crocs offers a compelling value proposition to its customers, including:

Comfortable footwear: Crocs are renowned for their comfort, making them suitable for extended wear.

Unique and recognizable design: The iconic clog design sets Crocs apart and makes them easily identifiable.

Versatile and practical: Crocs are versatile and serve as everyday footwear suitable for various activities.

Accessibility: Crocs provide affordable footwear options for a wide range of consumers.

Wide range of styles and colors: Customers can choose from a vast selection of styles and colors to match
their preferences.

Durability: Crocs are known for their longevity, offering lasting value.

Lightweight and water-friendly: They are lightweight and water-resistant, ideal for beach and water
activities.

5 porters analysis

Based on the information provided, let's analyze Crocs' business model using Michael Porter's Five Forces
framework:

Bargaining Power of Suppliers:

Crocs' suppliers likely have some power due to the need for high-quality materials in shoe production.
However, Crocs could potentially mitigate this power by diversifying its supplier base and establishing long-
term relationships.

Bargaining Power of Buyers:

Crocs offers a wide range of value propositions, including comfort, affordability, durability, and fashion. This
may give them some power over buyers, especially in their target segments. Customers have options, but
Crocs' unique design and competitive pricing could keep buyer power in check.

Threat of New Entrants:

Crocs has a well-established brand, and the footwear industry requires substantial resources for
manufacturing and distribution. The threat of new entrants is likely moderate. However, potential
newcomers may focus on niche markets or innovative materials.

Threat of Substitutes:

The threat of substitutes is relatively high, given the variety of footwear options available. Customers can
easily switch to other shoe brands or types. Crocs' challenge is to maintain customer loyalty and stay
innovative to differentiate themselves from other footwear options.

Competitive Rivalry:

Crocs faces competition from well-known brands like Nike, Adidas, Puma, and others in the footwear
industry. Crocs' unique design and focus on comfort set them apart. However, they need to address
weaknesses such as low customer loyalty and limited stores. Their opportunities include expanding into
international markets and increasing marketing efforts to compete effectively.

In terms of maximizing revenue and focusing marketing efforts, Crocs should consider the following:

HOW TO IMPROVE??

Expanding Internationally: Crocs should continue to expand into international markets, especially in Europe
and Asia, where there is room for growth.

Improving Customer Loyalty: Addressing the issue of low customer loyalty is crucial. Providing excellent
customer service and after-sales support can help retain customers.

Increasing Store Presence: Opening more stores can increase their visibility and sales. This could be
particularly effective in areas with a high concentration of their target customer segments.

Innovation: Invest in research and development to introduce new designs and product lines, ensuring that
Crocs remains fresh and relevant in the market.

Marketing and Branding: Increase marketing efforts to attract a wider customer base. Leverage their
strengths, such as their unique design and affordable pricing, to create compelling marketing campaigns.

Increase Store Numbers: Crocs could open more stores to increase sales;
Expand into Different Categories: Crocs could expand into other categories, such
as sandals;
Acquire Other Companies: Crocs could acquire other companies to gain new
customers.
Exclusive Releases: To drive traffic to its DTC channels, Crocs occasionally releases exclusive products or
limited-edition collections only available on its official website. This creates a sense of urgency and
encourages customers to visit the website directly.

Identify Changes in Industry Structure for Crocs:

-New Entry Likely: Given the relatively low entry barriers in the footwear industry, new entrants are likely
to continue to enter the market, especially in the casual and comfortable footwear segment. Crocs should
prepare for increased competition by emphasizing its unique brand and material. Fusions and
acquisitions to intensify the concentration of the sales

-concentration: Crocs has been shifting its emphasis toward direct-to-consumer (DTC) sales and brand
control. This could lead to increased concentration in the market, as Crocs aims to have more control over
its image and inventory. Concentration could increase as established players like Crocs focus on DTC sales
and brand control.

-Power of clients and suppliers: The power of customers and suppliers may vary depending on market
dynamics. If customers increasingly seek affordability, there may be pressure on Crocs' profitability.
Similarly, supplier relationships and diversification of sources for raw materials (such as Croslite resin) could
influence production costs. The power of clients is likely to remain significant, as customers have a wide
range of footwear options and can easily switch to other brands. Crocs' power over suppliers might increase
due to the brand's demand for high-quality materials and its established position in the market.

-Fashion trend: It can vary by region; In some places Crocs can be considered a trendy choice now but not in
the future. Fu Gvasalia e la troll fashion lanciata con Vetements a sdoganare le Crocs – quelle di Balenciaga
registrarono il sold-out addirittura prima di arrivare nei negozi. Poi venne il trend delle ugly shoes, dello
streetwear trend che portò infinite celebrità a farsi paparazzare in tuta e ciabatte: per essere cool bisognava
fregarsene e niente ostentava menefreghismo come le Crocs. La profezia di Christopher Kane si stava
avverando. A quel punto il brand aveva già una certa età e il fascino della nostalgia dei primi anni 2000 si
faceva sentire. La straordinaria impennata che il brand ebbe in questa fase fu dovuta alla diffusione
dell’ironia della moda di cui la cosiddetta “estetica del brutto” fu il più immediato riflesso. Remember
JIBBITZ (DECORAZIONI)
-counterfeiting: In the past years al strong identity of Crocs is been a victim of counterfeiting, so in the
market you could find cheaper alternatives.

-Collaborations: as in 2018 happened with Balenciaga, in the next few years we could see other
collaborations with famous brand to improve their identity and brand. These collaborations aim to make
Crocs more appealing to the fashion-conscious crowd. Some examples include collaborations with
Balenciaga and Christopher Kane. On September of this year Crocs started a collaboration with Levi’s for
example.

- Innovation and Substitutes: Innovation is a key focus for Crocs, and they have a history of creating unique
and comfortable footwear. As they continue to innovate, it could potentially create new substitutes for
traditional footwear. For example, new materials or designs that offer both comfort and style might disrupt
the market.

- E-commerce and Digital Marketing: The digital path to market, including e-commerce and digital
marketing, has proven to be advantageous for Crocs. They should continue to invest in their online presence
and utilize social media and influencers for marketing.
DTC Sales: Strengthening their direct-to-consumer sales channel can provide better control over brand
image and customer experiences. Personalization, loyalty programs, and excellent customer service are keys
to success in this channel.

THERE ARE ONLY 340 TOTAL STORES IN THE WORLD: Nel 2021, l'azienda ha ridotto la sua gamma di prodotti
del 30-40% per enfatizzare i suoi zoccoli unici e ha anche annunciato che 160 dei suoi 558 negozi al dettaglio
sarebbero chiusi per supportare la spinta DTC.

Civic Mindset In 2020, Crocs donated over 860,000 pairs of shoes to frontline healthcare workers as COVID-
19 spread worldwide. Once again in 2021, the company made its shoes available for free. This philanthropic
initiative allowed Crocs to market its shoes to healthcare workers as a clean, comfortable, and cost-effective
alternative to traditional footwear.

COLLABORAZIONI PER IL FUTURO

In the future, Crocs could collaborate with a wide range of brands and entities to expand its reach and
appeal to diverse customer segments. Potential collaborations might include:

Sports Brands: Collaborating with sports brands to create sporty and performance-oriented Crocs designs.
This could help attract athletes and active individuals.

Eco-Friendly Brands: Partnering with eco-friendly brands to produce sustainable Crocs made from
environmentally responsible materials.

Bargaining Power of Suppliers

All most all the companies in the Textile - Apparel Footwear & Accessories industry buy their raw
material from numerous suppliers. Suppliers in dominant position can decrease the margins Crocs,
Inc. can earn in the market. Powerful suppliers in Consumer Goods sector use their negotiating
power to extract higher prices from the firms in Textile - Apparel Footwear & Accessories field. The
overall impact of higher supplier bargaining power is that it lowers the overall profitability of Textile -
Apparel Footwear & Accessories.

How Crocs, Inc. can tackle Bargaining Power of the Suppliers

By building efficient supply chain with multiple suppliers.

By experimenting with product designs using different materials so that if the prices go up of one
raw material then company can shift to another.

Developing dedicated suppliers whose business depends upon the firm. One of the lessons Crocs,
Inc. can learn from Wal-Mart and Nike is how these companies developed third party manufacturers
whose business solely depends on them thus creating a scenario where these third party
manufacturers have significantly less bargaining power compare to Wal-Mart and Nike.

Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by paying the
minimum price as possible. This put pressure on Crocs, Inc. profitability in the long run. The smaller
and more powerful the customer base is of Crocs, Inc. the higher the bargaining power of the
customers and higher their ability to seek increasing discounts and offers.
How Crocs, Inc. can tackle the Bargaining Power of Buyers
By building a large base of customers. This will be helpful in two ways. It will reduce the bargaining
power of the buyers plus it will provide an opportunity to the firm to streamline its sales and
production process.

By rapidly innovating new products. Customers often seek discounts and offerings on established
products so if Crocs, Inc. keep on coming up with new products then it can limit the bargaining
power of buyers.

New products will also reduce the defection of existing customers of Crocs, Inc. to its competitors.

Crocs: The fashion Dilemma – Slide copywriting

The brand's iconic clogs, initially considered unconventional, have gained popularity due to their comfort,
unique design, and the overall embrace of the "ugly" or unconventional aesthetic by fashion enthusiasts.

Crocs, despite current success, faces potential challenges if the "ugly" footwear trend
declines. Shifts in aesthetic preferences, evolving fashion norms, competitive landscape, and
economic factors pose risks. To mitigate, Crocs can diversify styles, collaborate for limited
editions, invest in versatile marketing, and innovate with new materials and technologies,
ensuring adaptability to changing fashion trends.

COLLABORATIONS:
Balenciaga 2018: This collab showcased an unexpected fusion of high
fashion and comfort, aiming to attract a diverse audience and make
Crocs appealing to the fashion-forward crowd. Christopher Kane:
Christopher Kane also transformed Crocs into a luxury model, pairing
them with evening dresses and lightweight fabrics, highlighting their
versatility. Levi's (2023): The recent collaboration with Levi's signifies
Crocs' continuous exploration of diverse partnerships. This
demonstrates its adaptability to different styles and preferences
within the fashion industry. London Fashion Week 2023: Crocs
collaborated with fashion designer Simone Rocha, reimagining the
classic Crocs by embellishing them with Rocha's signature pearls.