Crayola is an art material manufacturing American retail multinational company. C Harold Smith and Edward Binny founded the art materials company in 1885. Today, we’ll discuss the SWOT analysis of Crayola; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
The products and services portfolio of Crayola
- Modeling Clays
- Markers
- Colored pencils
- Brushes
- Watercolor
- Acrylics
- Chalks
- Crayons
Subsidiaries of Crayola
- Crayola Studios
- Portfolio Series
- Silly Putty
- Crayola
Statistical facts and figures of Crayola
- Annual revenue: 750 million USD
- Employees: 2000
- Network: 11chain stores
Competitors of Crayola
- Tiny Love
- Rainbow Play Systems
- Colorific
- PlaSmart
- Chromacryl
- Hygloss
- Creativity Street
The SWOT analysis of Crayola would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Crayola SWOT analysis as a business strategy analysis example company as follows;
Strengths of Crayola
Some of the main internal strengths in the Crayola SWOT analysis example company as business strategy analysis are as follows;
Recognized Brand
Crayola is a well-recognized art materials manufacturing brand. The art material company has been operating its business in the art manufacturing market for the past 140 years. The strong legacy and experience allow the company to earn the trust and confidence of customers for high-quality art material products.
Large Network
Crayola has a very large distribution and retail network comprising 11 retail chain stores and distributing products and goods worldwide. According to an estimate, Crayola is operating its retail distribution of art material products in approximately 80 countries across the world.
Differentiation
Crayola has successfully differentiated itself in the art material manufacturing business market. For instance, Crayola is one of the few producers of silicon polymer toys and the biggest manufacturer of crayons. They show the company’s strong skills and expertise in the particular field.
Portfolio
Crayola has established a very large product portfolio comprising a wide range of art material products. They’re like crayons, brushes, watercolors, tempera, acrylics, markers, modeling clay, and others. The large product portfolio helps the company to smoothly perform its various operations in various countries worldwide.
Strong Finances
Crayola has a strong financial position comprising of annual revenue of 750 million USD in 2023. The strong financial backing helps the company to smoothly perform its various operations without any disruptions.
Weaknesses of Crayola
Some of the main internal weaknesses in the Crayola SWOT analysis example company as business strategy analysis are as follows;
Over-reliance on Crayons
It is no doubt Crayola has a very large and diversified product portfolio. However, the art material manufacturing brand heavily relies on crayons as its main source of revenue and profitability. On the other hand, the growth of crayons is decreasing due to the growing digital trends. High reliance on a few products and markets is not a good business and marketing strategy for the brand.
Limited Retail Chain Stores
Crayola has a limited market share as compared to other art material manufacturing brands. The limited market share is restricting the company’s growth opportunities in terms of sales and networking.
Opportunities for Crayola
Some of the main available opportunities in the Crayola SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Crayola should expand its art material manufacturing business into new markets, countries, and geographical regions across the world. The global market and the developing countries hold great growth potential for the art material manufacturing business. It would help the company to increase its network and sales.
Product Portfolio Expansion
Along with market expansion, Crayola should also expand its product portfolio by launching digital painting devices and products for online users with a realistic experience. It would help the company to target new segments of the customer market and increase its sales.
Strategic Alliance
Crayola should develop strategic alliances with other art material manufacturing and tech companies. Joint ventures and sharing of resources would help the company to develop new artistic products for customers and increase its market network.
Threats to Crayola
Some of the main potential threats in the Crayola SWOT analysis example company as business strategy analysis are as follows;
Tough Competition
Crayola is facing tough competition from other competitive brands like Tiny Love, Colorific, and Rainbow Play Systems. They all have established a strong market share and a very loyal database of customers; their market presence is negatively impacting the growth rate and sales of the company.
Economic Recession
Art is a luxury for the rich and developed societies. The global economy is going through a recession phase with a higher unemployment rate; people won’t spend their limited income on art when their preference is to survive.
Conclusion: Crayola SWOT Analysis Example Company |SWOT Analysis of Crayola |Business Strategy Analysis
After an in-depth study of the swot analysis of Crayola; we have realized that Crayola is the world’s leading retail chain art material manufacturing brand. If you are learning about Crayola SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
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Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
