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Assignment # 03 The External Factor Evaluation Matrix: Opportunities Weight Rate Weighted Score 1

Crocs scored a 2.17 on their external factor evaluation (EFE) matrix, which is below average and implies room for improvement. The EFE matrix assessed opportunities and threats in Crocs' external environment. Key opportunities included expanding into untapped markets and online shopping. Major threats were imitation products, currency fluctuations, and negative consumer perceptions of quality. Crocs needs to overcome weaknesses like public perception and currency risks globally to improve their below average EFE score.

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507 views

Assignment # 03 The External Factor Evaluation Matrix: Opportunities Weight Rate Weighted Score 1

Crocs scored a 2.17 on their external factor evaluation (EFE) matrix, which is below average and implies room for improvement. The EFE matrix assessed opportunities and threats in Crocs' external environment. Key opportunities included expanding into untapped markets and online shopping. Major threats were imitation products, currency fluctuations, and negative consumer perceptions of quality. Crocs needs to overcome weaknesses like public perception and currency risks globally to improve their below average EFE score.

Uploaded by

ALe KhokHar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ASSIGNMENT # 03

THE EXTERNAL FACTOR EVALUATION MATRIX

ALVEENA KHIRSHEED
20171-22731

OPPORTUNITIES Weight Rate Weighted


score
1 There is an opportunity for Crocs to expand in untapped 0.04 2 0.08
markets as governments of many countries are
promoting foreign trade.

2 Marketing campaign on the medicinal benefits of 0.06 2 0.12


product
3 As the awareness of toxic chemicals in the shoe 0.03 3 0.09
production is increasing among customers Crocs can use
it as an opportunity and increase their competitive
advantage
4 By developing new technologies Crocs can shortened the 0.07 1 0.07
life cycle of new product development

5 Expansion into other product categories 0.06 4 0.24


6 The Croslite material perhaps has many undiscovered, 0.06 1 0.06
marketable applications, so the company could devote
more resources to R&D to develop new innovative
products.

7 Customers’ increasing interest in online shopping 0.07 2 0.14


8 Expansion in fashion segment of footwear industry 0.06 3 0.18
9 More collaborations with healthcare professionals as 0.03 4 0.12
they like to make crocs as a standard shoe for their
working environment
10 The company can enter in countries having low taxation 0.07 2 0.14
policies and generate high profit which they can invest in
R&D

THREATS
11 Political instability in global markets 0.05 3 0.15
12 High price of their products can be a threat in under- 0.04 3 0.12
developed markets.
13 Takeover by major players of the footwear industry like
Nike and Adidas
14 Imitation products of Crocs 0.10 3 0.30
15 Presence of toxic chemicals in Croslite
16 The technological developments done by the 0.03 2 0.06
competitors.

17 The quality of material used by Crocs is biodegradable 0.06 1 0.06


which is harmful for the environment.

18 Exposure to currency fluctuation in global markets. 0.05 3 0.15


19 Recession is another threats for footwear industry as it 0.03 1 0.03
can result in lower production.

20 Public perception about the product 0.06 1 0.06

TOTAL 1

Crocs scored a 2.17 on their EFE matrix which is a below average score, which implies the
company is not doing well and has a lot of room for improvement as the highest total
weighted score is 4.0. The company has good opportunities on the e-commerce side of the
business. On the weakness side Crocs needs to overcome the challenges like currency
fluctuations globally and recent negative consumer attitudes regarding quality and
performance. Crocs also have a few threats that can lead to a decrease in their existence.
Imitation products is the number one threat for them, as we can see it is obvious that Crocs is
quite expensive in terms of price, and many of the imitation only cost no more than 20% of the
real price.

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