Premium Essay

Ecco Global

In:

Submitted By nicekris
Words 447
Pages 2
ECCO A/S – Global Value Chain Management
Reading assignment questions
1. Describe the competitive environment of ECCO and determine how well
ECCO is positioned (compared to competitor) to take advantage of changes in the industry.
Answer The competitive environment of ECCO is quite high due to the other of producing shoes such as NIKE, Adidas and Puma etc are the big brand as well. However, the way they positioned themselves is interesting. ECCO positioned itself to be concerned in the quality rather than fashion
2. Analyze ECCO global value chain. How well does this configuration match the drivers in the industry?
Answer The ECCO value chain
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?
4. How is family ownership affecting ECCO? Comment on the corporate ownership structure and its implications for strategy-making and implementation. What alternatives exist?

1) 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 local expertise. Because of this unique situation, competitors found it very difficult to sustain a comparable level of quality.
As noted in the case, ECCO finds itself in a highly competitive industry. The primary competitors identified in the case are: Timberland, Clarks, and Geox. For a brief analysis of the strengths of each of these

Similar Documents

Premium Essay

Ecco Analysis

...12 3. PURPOSE 12 4. CONTENT 13 5. EXTENSION AND SIZE OF GROUPS 13 6. SUPERVISION 13 7. DEADLINES 13 ECCO achieved record results in 2011 (Source: http://www.ecco.com/en-XI/Media-Center/Annual-Report ) In 2011, ECCO achieved 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 and all their belongings. Despite this, they all made an enormous effort both for ECCO, usually incompletely unfamiliar roles, and for the local community. For ECCO, the flooding meant the loss of more than a third of the company’s production capacity. The emphasis was therefore placed on quickly establishing increased production at ECCO’s other factories and among external partners. New production capacity has now been established in Thailand, and ECCO expects to be back in full production by the end of 2012. It was particularly positive that ECCO’s tannery in Thailand succeeded in restoring production as early as 1 February 2012. In 2011 ECCO increased its revenue from DKK 6.1 billion to DKK 7.1 billion, an increase of 16%. The profit before tax of DKK...

Words: 3758 - Pages: 16

Premium Essay

Ecco a/S Global Chain Management

...ECCO A/S – Global Value Chain Management Analyze ECCO’s global value chain. That is where in the companies processes does the company accumulate value that results in profitability? ECCO A/S had been very successful in the footwear industry by focusing on production technology and giving quality by maintaining full control of the entire value chain from "cow to shoe." ECCO has a unique competitive environment and holds a distinct advantage from it's competitors. Most of ECCO's competitors are "branded marketers", who do not produce most of their offerings, they brand and market them. These competitors include Clarks, Geox, and Timberland, along with indirect competitors such as Nike and Adidas. ECCO is not a branded marketer, but uses a fully integrated vertical value chain where they produce many of their own materials. ECCO makes nearly all of their own products in different countries, but in their own facilities unlike competitors. ECCO produces high-quality footwear that is mainly in the casual category. In the last decade, ECCO has entered the golf shoe market which has gained them one large competitor in Nike. ECCO used greater technology in production to maintain a higher level of quality over its competitors. The many aspects of their production put in quality to their shoes that made creating a similar shoe very hard for competitors. ECCO can make changes in the industry more efficiently than their competitors because they produce their own supply. If a major change...

Words: 646 - Pages: 3

Free Essay

Quality Pioneers

...Total Quality Pioneers Paper xxxxxxxx Quality Management and Productivity MGT/449 xxxxxx xxx Introduction People are confronted with scenarios concerning quality nearly every day. The word or notion of quality can be defined a number of ways. Some think quality should be determined by individual standards and expectations, while others believe quality is an ever changing state. Goetsch and Davis systematically broke down the elements of quality and determined that “quality is a dynamic state associated with products, services, people, processes, and environments that meets or exceeds expectations and helps produce superior value (Goetsch and Davis, 2010 p.5).” Whatever ones interpretation of quality might be, the intent of this paper is to more clearly define quality and its elements as well as describe how the quality pioneer's use of the total quality elements made the pioneers successful. Furthermore, this paper will explain why the elements of quality are useful in today’s environment and offer some insight as to what the future of quality might look like. Quality and its Elements Quality is defined with a variety of distinct explanations. Nevertheless, understanding quality is the key. End use consumers that are businesses explain quality unmistakably through the use of standards, specifications, and other measurable features. For instance, an individual in search of a new automobile will make his or her final purchase decision based on the quality...

Words: 849 - Pages: 4

Premium Essay

Under Armour

...correct patients so that no other competitors steal valued material. This actually makes their products perform better than other competitors. Politically Under Armour needs to promote good and safe work habits. They do not want a negative view like Nike obtained after they were seen utilizing sweatshops to make a deeper profit in the Industry. Even if a few customers find out they are using bad practices, then it shatters the whole reputation and brand image. Socio-cultural and Global Under Armour and other competitors can and have been using a global image to win the customers over. It is very important that Under Armour utilizes the global image of their quality product, for instance, showing their products on a global scale such as providing gear to the NFL and MLB. People are likely to wear what the professionals wear because they want to be like them. It also utilizes product placement in movies, TV shows, and video games that places their product on a global scale. It can also reach a global scale by endorsements made with worldwide know people, such as people participating...

Words: 1352 - Pages: 6

Premium Essay

It190 Unit8 Essay Impact of It on Globalization

...with products from manufacturing to cultural resources that promotes worldwide exchanges of ideas, economic impact and global interaction. The major factors which have contributed advances on an exponential scale include transportation in the air, sea, and ground, and the international infrastructure in telecommunications, from fiber optics, global thinking and the World Wide Web2. The processes in globalization has affected small business to large corporations, economics, social cultural resources, including politics from the migration of ideas with support and criticism from cultural differences intertwined with competition. The creativity and innovation from the diverse cultures has exploded into popularity that affect all civilization and lifestyles. Diverse knowledge and the ability to compete on a global scale has changed the way businesses and individuals interact. The advances in technology, with faster cell phone,smartphones, tablets integrated electronics, multi-CPU architect, faster bandwidth from fiber optic infrastructure will continue to integrate businesses and individuals in globalization for years in the future. The consumption of a product, either electronic gadgets, power tools, food or grains, and intellectual property from the east coast to west coast or United States to China or any other country will affect the supply or demand on a global scale instead of locally from state to state, or neighboring...

Words: 421 - Pages: 2

Premium Essay

Transnational Chapter 1

...TM-Chapter 1 (Motivations, Means and Mentalities) In this chapter, a number of important questions that companies must resolve before taking the leap to operate outside their home environment. 1. What market opportunities, sourcing advantages, or strategic imperatives provide the motivation for their international expansion? 2. By what means will they expand their overseas presence-through modes such as exports, licensing, joint ventures, wholly-owned subsidiaries, or some other means? 3. How will the management mentalities – their embedded attitudes, assumptions, and beliefs- that they bring to their international ventures affect their chances of success? Operating in an international rather than a domestic arena presents managers with many new opportunities. Having worldwide operations not only gives a company access to new markets and low-cost resources, it also opens up new sources of information and knowledge and broadens the options for strategic moves that the company might make to compete with its domestic and international rivals. However, with all these new opportunities come the challenges of managing strategy, organization, and operations that are innately more complex, diverse, and uncertain. What is multinational enterprise? * Multinational enterprise has substantial direct investment in foreign countries (Not just the trading relationships of an import-export business), and actively manage and regard those operations as integral parts of the company...

Words: 1350 - Pages: 6

Free Essay

Nt 1310 Unit 1 Ex 1

...Introduction One of the most important items about gaming is there are winners and losers (in a fun and entertaining way), which influences and entices players all over the world. All of the variables involved with the networks that provide gaming platforms are so dynamic and diverse. From games that are purely for fun or learning there will be a huge market for deploying bigger networks. This is one reason networks growth should grow exponentially. Below is what I have identified as a gaming or Local Exchange network. “Retrieved from, http://www.psu.com/a018031/” 12/17/2013 Posted January 17th, 2013 at 19:30 EDT by Timothy Nunes “Retrieved from, http://www.hcl-axon.com/Our_Products/gamedge/” 12/17/2013 “Retrieved from, http://compnetworking.about.com/od/homenetworking/ig/Home-Network-Diagrams/Hybrid-Network-Diagram.htm” 12/17/13 By Bradley Mitchell References • Home Wi-Fi Security Checklist Cited in the "Handbook of Electronic Security and Digital Forensics" and other titles! • Fixing Common Internet Connection Problems There's nothing more frustrating than a broken Internet connection. We have some tips that can help. Summary The development of a good gaming network has many components that work to enable the end user to have a full experience of entertainment and enjoyment. Some networks are much smaller which can be setup for home use. The ability to play a...

Words: 295 - Pages: 2

Free Essay

Adecco Group

...Adecco Group Adecco Group became a multinational corporation via a merger of Adia and Ecco in 1996; the company is one of several Fortune Global 500 companies, and the world's leading staffing agency that offer clients worldwide Human Resource solutions (Adecco Group, 2014). Adecco Group is headquartered in Zurich-Glattbrugg, Switzerland and operates in over 60 countries and regions; providing employment solutions by staffing individuals in organizations as: temporary or permanent employees (Adecco Group, 2013). The company also helps clients and employees with career changes and talent growth and advancement, as well and outsourcing and consulting services to some of the most well-known large corporations (Adecco, Group, 2013). According to the company’s 2013 financial report, their revenue declined 5% to 19,503 EUR and decreased by 2% in constant currency due to a decline in temporary staffing volume (Adecco, 2014, p. 47). The temporary staffing decline also led to gross profits to decrease by 3% of all 13 segments. Operation strategies are actions that the corporate set to remain competitive in the industry and build brand equity; therefore, Adecco Group’s strategy wants to work alongside associates and clients through every phase of the life cycle. In addition, the Adecco Group conduct audits to make sure each segment are operating efficiently to remain on track through all growth segments and markets while practicing s stringent cost management technique, the Economic...

Words: 1443 - Pages: 6

Premium Essay

Global Warming

...Global warming has become perhaps the most complicated issue facing world leaders. On the one hand, warnings from the scientific community are becoming louder, as an increasing body of science points to rising dangers from the ongoing buildup of human-related greenhouse gases — produced mainly by the burning of fossil fuels and forests. On the other, the technological, economic and political issues that have to be resolved before a concerted worldwide effort to reduce emissions can begin have gotten no simpler, particularly in the face of a global economic slowdown. After years of preparation for climate talks taking place in Copenhagen through Dec. 18, 2009, President Obama and other leaders announced on Nov. 15 what had already become evident — that no formal treaty could be produced anytime soon. Instead, the leaders pledged to reach a placeholder accord that would call for reductions in emissions and increased aid to help developing nations adapt to a changing climate and get access to non-polluting energy options. This would in theory give the nations more time to work out the all-important details. Negotiators would then seek a binding global agreement in 2010, complete with firm emission targets, enforcement mechanisms and specific dollar amounts to aid poorer nations. At the heart of the debate is a momentous tussle between rich and poor countries over who steps up first and who pays most for changed energy menus. Read More... Within the United States...

Words: 1940 - Pages: 8

Free Essay

Ski Resorts-Case Study

...SKI RESORTS IN THE USA CASE STUDY Table of Contents: 1. Abstract…………………………………………………………………..3 2. Question 1: What are the most important changes in the environment that have contributed to the drop in revenues?..................................................4 3. Question 2: Why is management a more important success factor for ski resorts now, compared to 20-30 years ago?................................................5 4. Question 3: How is competitive environment of the resorts on the east coast different from that in Colorado? What should the east coast resorts pay particular attention to?..........................................................................7 5. Question 4: Possible changes in the environment in the near future…….8 6. Conclusion………………………………………………………………..9 7. List of References…………………………….…………………………10 Abstract The following paper discuss factors that have lead to changing business environment and its’ impact on ski tourism industry, concentrating especially of the ski resort performance and changes that must take place in order for this business to survive and continue its’ operation on its’ highest level. First and foremost, the economic, political and environmental factors that have been changing in the previous years have lead to the decrease in revenues of the ski resorts that have been taking place since the 1970s. Further on, the management of ski resorts and ski centers must adapt to the above...

Words: 2228 - Pages: 9

Premium Essay

Forest

...Situation analysis Kenya’s forests are rapidly declining due to pressure from increased population and other land uses. With B of the country being arid and semi-arid, there is a lot of strain on the rest of the land since the economy is natural resource based. The productive area which forms about 20% of the country’s area falls in the medium and high potential agro-ecological zones and is under agriculture, forest and nature reserves. According to FAO Forest Resource Assessment 1990, Kenya is classified among the countries with low forest cover of less than 2% of the total land area. The dwindling forest cover has a severe effect on the climate, wildlife, streams, human population especially forest dwellers. Introduction. Deforestation is clearing Earth's forests on a massive scale, often resulting in damage to the quality of the land. Forests still cover about 30 percent of the world’s land area, but swaths the size of Panama are lost each and every year. The world’s rain forests could completely vanish in a hundred years at the current rate of deforestation. Reasons for cutting down the trees Forests are cut down for many reasons, but most of them are related to money or to people’s need to provide for their families.The biggest driver of deforestation is agriculture. Farmers cut forests to provide more room for planting crops or grazing livestock. Often many small farmers will each clear a few acres to feed their families by cutting down trees and burning them in a process...

Words: 709 - Pages: 3

Free Essay

Article Rebuttal

...Global warming has been a heated topic of discussion for years. There are the people that believe in science and statistics, who say that is becoming more of an issue due to machine diagnostics and scientific evidence. The other side is the people that believe in religion and make choices by money, based on a plan created by god and an argument for our resources going to a cause that is inaccurate and impossible to fix. There does not seem to be a middle ground on this topic because you either believe in science or god, which has made this topic an ongoing debate with no results. The American Policy Roundtable is an organization in the United States that was founded on religion and republican views and they fund and profit from republican campaigning and success. Part of the Roundtable’s mission statement states “The objectives of the Roundtable model are built upon state-based public policy organizations, established in strategic states, all working to change America from "the bottom-up." Each state-based Roundtable organization serves under the auspices of the Board of Trustees of the American Policy Roundtable”. They state that they are a nonprofit organization, yet they have donations and contributions for radio station work and quote “Missionaries in the American field take care of their families as they serve the nation*”. The asterisk is further explained as “100% of the proceeds from books by David Zanotti, CEO, are contributed to the ministry”. Along with donations...

Words: 757 - Pages: 4

Premium Essay

Global Warming

...Global Warming Global warming, an increase in the earth's temperature due to the use of fossil fuels and certain industrial and agricultural processes leading to a buildup of “greenhouse gases” (principally carbon dioxide, methane, nitrous oxide, chlorofluorocarbons, and water vapor) in the atmosphere. Since 1896 it has been known that these gases reduce the escape of the earth's infrared radiation into space and this function to maintain the earth's relatively warm temperature. This is called the greenhouse effect. Although there is broad agreement that human activity, such as burning fossil fuels has reached a scale that is beginning to influence climate, there is much uncertainty and debate over how much and how fast the climate will warm. Elevated global temperatures could result in coastal flooding and the shifting of major climatic zones and may have serious implications for agricultural productivity. Since 1850 there has been a mean rise in global temperature of approximately 1.8 Fahrenheit and a 28 percent rise in carbon dioxide levels. While most scientists think this temperature rise to the increase in carbon dioxide levels, other scientists argue that this temperature rise could just be part of a natural fluctuation; such fluctuations have been recorded for tens of thousands years and operate in short-term as well as long-term cycles. Because of the difficulty of distinguishing between emissions caused by humans and those caused by natural sources, and a number...

Words: 667 - Pages: 3

Premium Essay

Global Warming

...Global Warming Global warming has become perhaps the most complicated issue facing human beans and world leaders today . Warnings from the scientific community are becoming louder, as an increasing body of science points to rising dangers from the ongoing buildup of human-related greenhouse gases — produced mainly by the burning of fossil fuels and forests. Global warming is when the temperature of the earth rises which causes the earth to heat up. This effect happens because of greenhouse gases carbon dioxide ,water vapors, nitrous oxide and methane .These gases trap heat and light from the sun in the earths atmosphere which therefore increases the temperature of the earth. This is a negative impact on the earth and it effects humans ,animals, plants, and climates. A major theory to what causes global warming is the greenhouse effect . The greenhouse effect is when heat and light is trapped in earths atmosphere as a result of this happening the temperature rises. The greenhouse effect has a positive and a negative side on the positive side the greenhouse effect makes earth adaptable for people to live on, without it the earth would be freezing, or on the other hand it would be very hot. Although the greenhouse effect makes it able for humans to function and live on this earth if there gets to be to many gases the earth can get warmer and plants,animals,and humans might die. The reason why humans would die because there would be less food,corn,wheat, vegetables and fruits...

Words: 482 - Pages: 2

Free Essay

Urban Sprawl

...Two Urban sprawl, being one of the unavoidable adverse effects of global economic growth, means uncontrolled city expansion. It contributes to higher demand in consumption goods such as the gasoline and vehicles, which allows the economy continues to flourish in many developed countries as well as developing countries (especially in China). However, urbanization poses an acute ecological threat because it highly depends on the massive development of motorization which is a significant driver of more energy and lands consumption and more emissions of global warming gases. Furthermore, as the motorized urban sprawl means unhealthier, less affordable places for the poor to survive caused by the dispersal of their communities, on the one hand, and growing public health problems, on the other, it also creates serious social problems. To address these adverse effects of urbanization, the technological solution is recommended given that nowadays technology plays a crucial role in socio-ecological development. This essay will outline the problems driven by urbanization and argue that the technological solution is not the most fundamental one to deal with the social and ecological problem driven by urban sprawl. In terms of social problems associated with the spread of urban development, the technological solution may pose greater difficulties to cope with the social polarization in the sprawled cities. The global development of urban sprawl will lead to the explosion of motorization...

Words: 1005 - Pages: 5