Ecco - Market Analysis - 1933 Words

EXECUTIVE SUMMARY ECCO is a Danish shoemaking and retailing company that was founded by Karl Toosbuy in Bredebro, Denmark in 1963. The company’s vision is to be the ‘most wanted brand within innovation and comfort footwear’ – which they intend to attain by constantly and courageously researching new paths, investing in employees, in core competencies of product development and production technology. While trends in the market with regards to fashion and elegance are deemed important, usability has been ECCO’s highest design priority. By 2004, ECCO had its main markets in the US, Germany and Japan and worked constantly on creation of new markets with emphasis on regions like Asia, Central and Eastern Europe. The financial ownership was†¦show more content†¦These tanneries supplied leather to all the production units across the world. The bulk of the raw hides originated from Germany, France, Denmark and Finland. ECCO’s production strategy was well-differentiated from its competitors in that ECCO handled 80% of the production of shoes on its own (which was in keeping with its focus of close control) whereas most of its competitors had outsourced most of the production, concentrating more on design and marketing of their products instead. The company employed a technology that they termed ‘direct injection technology’ which accounted for 80% of the total production. Because it was hard to imitate and gave them a competitive edge, the company was averse to outsource production. The remaining 20% was outsourced as these did not benefit from the direct injection method. ECCO began internationalizing operations in 1974 since it established an upper production unit in Brazil. Portugal ECCO set up its first full-scale production unit in Portugal in 1984. Initially Portugal had a significant share in both production of the uppers and shoe assembly. However, with rising labour costs, the numbers came down, as production shifted to Indonesia and Thailand. ECCO consequently reduced the number of employees and invested into technology to make the unit more high-tech. Indonesia Opened in 1991, the Indonesian production unit handled shoe uppers, accounting for 40 to 50 per cent of the demand. A distinctShow MoreRelatedEcco a/S-Global Chain Value Management991 Words   |  4 PagesCase 4-2  : ECCO A/S – Global Value Chain Management. ECCO is a worldwide company acting on the market of the shoes manufacturing. It has been created for more than 40 years and is one of the leaders of the market. The company key point in his product is the quality with a combine production: manual and machinery, a production of their leather made in-house and a unique direct injection technology. With this different assets the firm aimed to become the producer of the world’s most comfortableRead MoreEccos global value chain management1730 Words   |  7 PagesECCO 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 onRead MoreSwot Analysis Of Ecco As A Shoe Company Founded By Karl Toosbuy1462 Words   |  6 PagesHien Quang Introduction ECCO is a shoe company founded by Karl Toosbuy in Bredebro, Denmark in 1963. ECCO aims to produce the world’s most comfortable and modern footwear for work and leisure. 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Our target audience of the projectRead 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 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’sRead MoreEcco2065 Words   |  9 Pages1) Describe the competitive environment of ECCO and determine how well ECCO is positioned (vis-à  -vis competitors) to take advantage of changes in the industry. Use Porter’s five-forces model, the PEST model, and a SWOT analysis to explain your answer. (400 words) ECCO produces mainly casual footwear with an intense focus on high-quality production. In order to deliver the highest quality product, ECCO maintained a fully vertically integrated value chain situated in various countries leveraging