Strategic Management Report: Analyzing Crocodile Garments' Performance

This report provides a comprehensive analysis of Crocodile Garments, a Hong Kong-based company operating in the apparel industry. The report begins with an overview of the company's current performance, highlighting its financial success and brand recognition in the Hong Kong market. It then delves into the competitive environment, utilizing PESTEL and Porter's Five Forces analyses to assess the political, economic, social, technological, environmental, and legal factors influencing the business, as well as the competitive dynamics within the garment industry. The report identifies the company's strengths, such as strong brand value and customer satisfaction, and weaknesses, including brand confusion with competitors. Furthermore, it assesses the company's threshold and distinctive capabilities, including its product quality and targeted market segment. Based on this analysis, the report recommends that Crocodile Garments expand into new product lines, such as beauty and cosmetics, to increase profitability and reduce reliance on a single industry. The report also emphasizes the importance of monitoring operations to maintain product quality and uphold corporate social responsibility. The analysis is supported by references using the Harvard referencing style.

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Contents
The current performance of the company..................................................................................3
The competitive environment of the company...........................................................................4
The reasons for the current performance...................................................................................5
Recommendation on how to improve the current performance.................................................6
References..................................................................................................................................7

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The current performance of the company
The company Crocodile Garments is well known as Shirt Expert in the market of Hong
Kong. The company was firstly listed on Hong Kong Stock Exchange in the year 1971. The
company provide wide range of products in clothing segment like menswear, women wear
and children clothing as well. The company is known for its quality production in the market
and the brand symbol of the organization is extremely famous in the market of Hong Kong.
The organization is highly famous among the customers present in mainland China, Macau
and Hong Kong as well. The organization works on the concept of Urban Traveller’s need
due to which the functionality and style of clothes are identified in such a way that it makes
easier for the people to use it while travelling. The company earned the profit of HK $ 30.6
million in the business which is so far beneficial for the company to operate in the
competitive environment (Crocodile.com 2020).
Competence of the business along with competition is also elaborated in the paper so as to let
the reader attain true information about the organization and its position in Hong Kong
marketplace (Min 2015). Reasons of current performance is also is discussed below along
with recommendations to help the organization to improve its recurring position in the
marketplace as well. More details about the analysis of Crocodile Garments is mentioned
below:
The competitive environment of the company
Political: It is considerate to see that political stability of the organization has aroused in past
years. Likelihood and integrity of the politicians helps in smoothing functioning of the
business.

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Economic: these factors clearly explain the positivity in the environment. GDP of the nation
is rising and is expected to grow in near future. Efficient financial market works in favour of
nation and other companies as well.
Social: The society features explain that there is presence of gender diversity that motivates
Crocodile Garments to work more effectively to satisfy them. People are fond of living easy
and simple lifestyle.
Technology: Recent technology breakthrough in Hong Kong has effectively supported
companies like Crocodile Garments to grow in a better way while increasing the satisfaction
of the customers in the market (Chan, Choi, and Man 2016).
Environment: the environment of the nation has been geologically stable for millions of years
that provides benefits to people living in it.
Legal: Laws of the nation are strict for the organization so as to keep the interest of people
aligned in the environment.
Analysing the garment industry of Hong Kong, it should be noted that power is majorly
vested in the hands of the organization itself because there is low power with suppliers,
customers and less market entry as well. Although, there is presence of cut throat competition
for Crocodile Garments but the organization has successfully laid an impression on the mind-
set of Hong Kong customers as well. Biggest competition of Crocodile Garments is Lacoste;
this organization also has similar brand symbol of crocodile that confuses the customers in
the environment. Both the organization works under cut throat competition of gaining a better
position in the Hong Kong clothing market (Huang, et. al., 2016).
However, Crocodile Garments is specifically focused on the traveller and sports wear
segment because of which the business targets one segment and attain profitability from that
market. While, Lacoste is present in overall clothing segment due to which profitability of the

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business is also segregated accordingly (Wang 2016). The company has also earned several
awards in the Hong Kong environment like Outstanding QTS Merchant Award, Hong Kong
Top Brand etc. It should also be noted that the organization is highly concerned about its
quality of products and services as well.
The reasons for the current performance
Strong brand value along with high customer satisfaction acts as the biggest strengths for
Crocodile Garments in Hong Kong. Customers are highly satisfied with the products of the
company due to which they prefer to initiate repeated sales in the environment as well.
Secondly, efficient after sale service helps the organization maintain direct link with all the
customers in the market. Furthermore, understanding weakness of the company, it should be
noted that many times customers misinterpret Lacoste as Crocodile Garment because of its
logo which acts as a main reason in reducing sales of the organization. The only difference
between both the logos is that crocodile logo of one organization is parted leftward while
other’s logo is parted in the right ward direction (Langsford 2017). Biggest opportunity for
the business could be entry in different industries or introducing different product line in
clothing itself. Increasing interest of customers towards highly fashionable and expensive
products could act as a threat for the business.
Further, threshold capability of the organization that helps them to compete in the market is
its optimum quality production. The organization is known for its long lasting service quality
that increases the sales of the organization. The threshold capability for Crocodile Garments
to achieve competitive advantage in the market is its optimum selection of target market in
Hong Kong (Gardetti 2019). The company specifically deals in comfortable wear clothes
only that increases their grip on the customers and let the business to attain sustainable

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competitive advantage as well. The VRIO analysis of the resource and capabilities of
Crocodile Garments is mentioned below:
Valuable: the organization is working the Hong Kong environment from the long period of
time and now the company has attained the resources that are extremely rare and valuable in
the environment. Such resources only help the organization to identify itself from competitors
in Hong Kong (Kim, and Kim 2018).
Rarity: yes, the resources of Crocodile Garments are extremely rare in the environment. The
resources used by the organization are costly and it cannot be adopted by most of the
organizations that makes the services of business rare.
Imitable: as the resources of the business are extremely rare which nullify the capacity of
imitation in the environment.
Organized: the business is running from a long period of time in Hong Kong, resulting in
which, it can be said that the management organizes the resources effectively. Organization
of resources reduces the scope of wastage and production as well (Wang 2016).
Recommendation on how to improve the current
performance
After analysing the above mentioned details about the company, it is recommended to the
organization that they should enter in other product lines apart from fashion segment. The
company has captured high target segment of fashion industry, therefore, in order to increase
the scope of profitability, the business needs to enter in different segments. This would also
reduce the burden of the organization to rely only on one industry. The organization should
enter in beauty and cosmetics industry because it aligns with the fashion industry in which
the company is already present. In this way, the company would not face the need of market

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research because they would attract the existing customers of garment segment of the
organization (Tang 2017). The company also needs monitor the operations effectively so that
product quality is also managed appropriately while the community standards does not get
hurt. The corporate social responsibility of Crocodile Garments involves continuous
improvement of the environment and committing the society for charity and growth as well.

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References
Chan, H.L., Choi, T.M. and Man, K.Y., 2016. The Internationalization Trajectory of Bossini:
A Fashion Retailing Enterprise from Hong Kong. In Fashion Brand Internationalization (pp.
89-114). Palgrave Pivot, New York.
Crocodile.com., (2020) About Us [online]. Available from
<https://www.crocodile.com.hk/en/webpage.php?id=13&tp=2> [accessed on 2 April].
Gardetti, M.A., 2019. Sustainability: Is it Redefining the Notion of Luxury?. Springer Nature.
Huang, K.C., Hu, T.S., Wang, J.Y., Chen, K.C. and Lo, H.M., 2016. From fashion product
industries to fashion: upgrading trends in traditional industry in Taiwan. European Planning
Studies, 24(4), pp.762-787.
Kim, S. and Kim, S., 2018. Segmentation of potential film tourists by film nostalgia and
preferred film tourism program. Journal of Travel & Tourism Marketing, 35(3), pp.285-305.
Langsford, C., 2017. From the Bush to the Cloud: Following the Social Lives of the Skins
‘Dun’and ‘Dee’. Sites: a journal of social anthropology and cultural studies, 15(1).
Min, C. Y., (2015) Crocodile started off selling singlets [online]. Available from <
https://www.straitstimes.com/business/companies-markets/crocodile-started-off-selling-
singlets> [accessed on 2 April].
Tang, S., 2017. Disrobed: How Clothing Predicts Economic Cycles, Saves Lives, and
Determines the Future. Rowman & Littlefield.
Wang, Y., 2016, March. Clothing enterprise marketing channel mode of analysis and
research. In 2016 International Conference on Education, Sports, Arts and Management
Engineering. Atlantis Press.

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Wang, Y.S., 2016. Dynamic capabilities in fashion apparel industry: emergent conceptual
framework. Baltic Journal of Management.