Eccos global value chain management - 1730 Words

ECCO A/S-GLOBAL VALUE CHAIN MANAGEMENT ANALYSIS 1. Describe the competitive environment of ECCO and determine how well ECCO is positioned (vis-à  -vis the competitors) to take advantage of changes in the industry. http://wulibraries.typepad.com/files/footwear.pdf 2. Analyze ECCO’s global value chain. How well does this configuration match the drivers in the industry? Analyze ECCO’s global value chain. High demand for quality and reduced lead times led the company to a self-sufficiency approach on streamlining its entire value chain from raw hides to finished shoes unlike its major competitors who only designed and marketed their products without in house manufacturing. In having a global network of tanneries, production facilities,†¦show more content†¦How well does this configuration match the drivers in the industry? Ownership of tanneries, factories and leather research centers maintained the firm’s brand of commitment to quality and boosted the company’s ambition and confidence in delivering products that met customer expectations In reducing the number of vendors, the company was able to maintain high quality levels through close quality control measures and maintain its brand image of working to create the perfect shoe. The firm also made compromises to its approach in some cases by outsourcing its production for shoes that could not benefit from its in-house technology. Most firms in the shoe industry outsourced production as a way to cut production and vendor logistic costs. 3. ECCO has a fully integrated vertical value chain. What are the pros and cons of this strategy? What economic and strategic factors should be analyzed to answer this question? Pros: Higher demands of quality can be achieved (e.g. through better quality control) supports the company’s vision of high quality products Core Technology stays within the company You have more price control (= less exposed to price fluctuation) Eliminate the intermediaries (and obtain the margin of supplier / intermediaries) Higher economies of scale Ability to access leading expert knowledge about tanning Implement shoe and company specific Research Development (for example less pollution = can be used forShow MoreRelatedEcco a/S – Global Value Chain Management1709 Words   |  7 PagesFirm in a Global Economy ECCO A/S – Global Value Chain Management Question 1: 1. Relate the Ecco case to the conceptualization of the organization as a global factory. What similarities and dissimilarities with the global factory conceptualization do you see and what solutions may it present? Similarities: As ECCO had been very successful in the footwear industry by focusing on production technology and assuring quality by maintaining full control of the entire value chain, ECCO grewRead MoreEssay Ecco Case Anwers1256 Words   |  6 PagesECCO Case Study - Question 1 ECCO has a fully integrated vertical value chain. What are the pros and cons of that strategy? What economic and strategic factors should be analyzed to answer this question? The pros of a having a fully integrated vertical supply chain for Ecco include the following: * Improved supply chain coordination between tanning, manufacturing and distribution. This would ultimately help maintain quality and improve operational efficiencies such as logistics. Read MoreEcco Analysis3773 Words   |  16 Pagesachieved the highest surplus in the company’s history with a profit before tax of DKK 904 million. This highly satisfactory result was particularly due to successful new collections and improvements in sales in most of ECCO’s markets. The outcome could have been even better, if ECCO’s shoe factory and tannery at Ayutthaya in Thailand had not suffered catastrophic flooding in October with considerable human and commercial consequences. Many of the 3,500 employees in Ayutthaya lost both their home andRead MoreMarketing Strategy - Case Analysis (Ecco)2681 Words   |  11 PagesMarketing Strategy Case Questions (Galka) ECCO A/S Global Value Chain Management Marketing Strategy Term 4 2011 Team #6 03 August 2011 1. Perform a Porter’s Five Force Analysis Force 1: Barriers to Entry | |Questions |Answer |Reason for Barriers to entry | |1. |Do Larger firms have a cost/performance |Yes (Positive) |Larger firms like ECCO have resourcesRead MoreMarketing Strategy of Ecco1859 Words   |  8 PagesCompany Background ECCO, the world leading brand of shoes, was found in Denmark by Karl Toosbuy in1963. ECCO’s philosophy -â€Å"the shoe must follow the foot†. Karl was the shoemaker realizing that shoes had to be made to fit the foot, as a result, functional, comfortable ECCO shoes were launched in the 1970s and became a huge success. ECCO is the only major shoe manufacturer to own and manage every step in the shoemaking process. ECCO produces leather and has its own tanneries, their design and productionRead MoreEcco Case Essay2047 Words   |  9 Pagesï » ¿Ecco Case ECCO A/S – GLOBAL VALUE CHAIN MANAGEMENT Executive Summary: ECCO A/S is one of the most prominent player in the global shoe industry and is also one of the leading footwear manufacturer in the world. Since its inception in 1963 it aspires to produce top quality, casual comfort shoes with a perfect fit which are pleasant to wear in all weather conditions. The company’s USP is top quality of its product with a coupled production of, manual and machine. The production of their leather wasRead MoreEcco and Turkish Market2882 Words   |  12 Pageswell-known company with good brand and mission to globalize. During the report we figure out how Ecco can be profitable in turkey which is nonwestern with Islamic culture country. In this report we use theories like swot, porters five fore, and value chain to determine our problem statement and as a results we analysis the advantages and disadvantages, strength and weakness as well as threat and opportunities Ecco may encounter before and after it enters Turkish market. We have been able to comeRead MoreEcco2521 Words   |  11 Pageslong term plan of action or execution designed to achieve particular objectives, such as achieving competitive advantage for an organisation. It reflects the values, expectations and goals of those who are in power within the organisation.† (RDI course material-Strategic Management module; Unit 1-Nature and scope of strategic management; Lesson 1-Nature) Strategic decisions direct the company towards the path of growth. A company formulated and undertook decisions in such a way that a strategicRead MoreGlobal Value Chain Management1307 Words   |  6 Pagesunprofitable customers someone else will  » ECCO A/S – Global value chain management case study Wednesday, August 31st, 2011 at 8:27 am My operations management coursework was based on the ECCO A/S – Global Value Chain Management case study which is an interesting paper on ECCO A/S (ECCO) who have been very successful in the footwear industry by focusing on production technology and assuring quality by maintaining full control of the entire value chain from â€Å"cow to shoe.†. ECCO follow a differentiationRead MoreEcco Case5429 Words   |  22 PagesECCO CASE – PROJECT 1 Table of contentsî ¿ ¿ Table of contents Question Theory used in this report Data collection Company description Financial situation SW - Internal Value Chain Ramp;D Production Sales and Marketing Service Core competences Benchmark Ansoff’s matrix of growth GAP-analysis OT - External Porter’s 5 forces Force 1: The degree of rivalry Force 2: The threat of new entrants Force 3: The threat of substitutes Force 4: Buyer power Force 5: Supplier power Porter’s