TOWS of Clarks
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(Factors that create) Threats
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(Factors that create) Opportunity
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There
is a significant threat from new competitors such as the major supermarkets
as well as high fashion retailers extending their product range to footwear.
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Social
trends are impacting Clarks market. There is a move towards cheaper more
fashionable boots and shoes made of synthetic materials which can easily be
disposed of after a relatively short period of time.
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There
is increased political threat on cheap imports e.g. tariffs on imported goods
from China and Vietnam. The EU commission is also monitoring anti-competitive
behaviour closely. This could escalate in the future.
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The company has invested heavily on 'green'
champagne; this environmental support has allowed Clarks to gain strong
customer loyalty.
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The
UK economy is showing signs of slowing down which will have an adverse impact
on demand of the Clarks shoes, therefore movement/ or remaining in niche
market can become difficult.
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The
brand can tap new emerging markets like India and Africa.
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The fragmentation in the leather shoes
segment is high leading to low customer loyalty.
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Weaknesses
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Strengths
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The
brand does not heavily advertise as its competitors who only brand and market
their products.
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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.
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Fake
replicas and imitation products affects brand image
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Company
maintains economies of scale in five countries spread across Asia and Europe
and nearly 80% of the shoes are manufactured in its own factories.
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The
brand’s foray into leather accessories has been a success.
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The
brands exclusive retail outlets as performance centers have been a great
success.
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Rehma Shamim
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