Critical success factors of Clarks

Critical success factors of Clarks

Threats (CSF)

• To overcome the threats from competitors e.g. supermarkets, Hush Puppies etc., Clarks can develop effective competitive pricing strategies whereby Clarks can under-cut the prices set by the competitors to attract the customers.
• Clarks can also enhance the elements of 'added value', to make their products distinct from the competitors.
• To manage the political threats of EU commission monitoring anti-competitive behaviour, Clarks can plan to expand their business into emerging markets such as India, to not only overcome the EU threats but to also gain full scope of global markets.
• The fragmentation in the leather shoes can have an immense effect on the customer loyalty of Clarks, the company can overcome this by developing showrooms of 'how the Clarks shoes are made?', this will not assure the customers but also will allow Clarks to develop a strong brand image.

Opportunity (CSF)

• Clarks have the opportunity to support the environment e.g. 'green campaign' this will not only work in favour of public interest but will also indirectly promote the company.
• The company can tap into emerging markets such as, India and Africa, as they have the potential need for particular products Clarks provide.

Weaknesses (CSF)

• The company doesn't advertise extensively, this can have adverse effects on their marketing positioning (e.g. if they desire to move to a niche market). They may also find it difficult to attract customer's attention from the competitors.

Strengths (CSF)

• The company maintaining economies of scale shows their efficiency in managing the production level and costs particularly as its currently in the global recession, whereby most companies have failed to prove their capabilities whilst Clarks show astonishing results in their profits.
• Clarks is attributed to be one of the only shoe company in the world to own and manage each and every step in the production process from tanning to the end-point of sales, this shows they are less likely to be affected by external changes.