...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...
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...NEW BALANCE CASE STUDY If you have a company and do business internationally, in today’s global world you have to compete with your rivals and be strong in the market. Reducing your cost is one of the effective ways to be competitive and strong. That’s why majority of companies seek low cost producer, labor etc. As we know China is the best example with its low cost labor, outsource etc. So China is very attractive for the companies doing international business. Most of them outsource more of their manufacturing to China to maintain a cost advantage. It looks very logical and easy to benefit from cost advantage by this way but it not as easy as we thought. As we can see our case, New Balance which is one of important shoe companies chose this way and faced really annoying problem for its brand: Counterfeit goods. 1) New Balance faced with these issues: • How to protect its intellectual properties when setting up manufacturing overseas. • How to stop the Chinese manufacturing unit from producing the “fashion” shoe which is sold at very low price and diluting the brand. 2) Important factors that are important in understanding this decision situation: • Since China is selling the low-price “fashion” shoes that are indistinguishable from the originals, brand value of New Balance can be damaged. • Selling low-price shoes can lead New Balance to gain reputation of selling low-quality shoes. 3) The alternatives are: • Getting into the overseas legal system...
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...Naturalizer Shoes Business History Naturalizer shoes are a shoe brand that is part of a larger shoe company, brown shoes. The Brown shoe company is a multi-national company with branches in Canada, China and The United States of America. In Canada, it operates under Naturalizer shoes. Naturalizer dates back to 1927. At that time, there was the revolutionary idea of coming up with stylish and comfortable shoes for women. They also aimed at providing a brand of shoes that would remain comfortable from the start of the day to the end of the day. These have remained the main goals of the Naturalizer shoe company. The headquarters of Brown Shoe Company are in Missouri, Clayton in the USA. The Naturalizer shoe brand has over 196 stores in both US and Canada. Though the Naturalizer brand dates to only 1927, its mother, the brown shoe company can be dated back to 1875. The company underwent significant changes and growth, acquiring brands such as Naturalizer, LifeStride, Via Spiga and Sam Edelman. The Naturalizer shoes now owns e-commerce sites which signify that the company has developed in terms of technology and marketing strategies.(Burstein L) The current CEO of Brown shoes and Naturalizer shoes is Diane Sullivan. She is also the Chairman and president of the company. Production The main product that Naturalizer shoes offers is the perfect fitting shoes that the company sells. The Naturalizer.com websites are tied to the retail stores. (indeed.com) This means that from the website...
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