ECCO Case
ECCO Case
Company Overview
Shoe manufacturer
From cow to shoe
Founded by Karl Toosbuy in 1963
Family-owned company
Revenue of 660 million euros in 2009
More than 17,000 employees from over 50 countries
Assignment 1
Analyse and define external strategic issues faced by ECCO. In doing so describe what you see are key influential factors for the further success of ECCO.
External strategic issues:
PESTEL
Political:
Economical: Growing markets in Scandinavia and Asia, weakening markets in US, UK, Russia and Ukraine
Social: changing cultures and demographics
Technological: online shopping?
Ecological: Impact of leather on environment?
Legal:
key drivers of change. expectations and purposes?
Define strategic business unit by market/competence-based criteria
Define the industry, industry group, industry life cycle, strategic group analysis before talking about porter’s 5. If not the forces will be too general
Key influential factors for ECCO’s further success:
Assignment 2
Competitive strategy of ECCO:
Basis of competitive strategy:
Bases of competitive advantages:
Cost efficiency
Automated the shoemaking process as much as possible
Adjusted production capacity and reduced cost during economic downturn
Uniqueness in product
BIOM: Revolutionary running shoe in market based on natural movements of the body Very well received, will add new models
Increased revenue for company
Uniqueness in process
Developed technology, brought in assembly lines and introduced robot technology and large-scale assembly machines Became world leader in direct injection technology.
Reduced cost
Marketing
Opened new stores to meet strategy of becoming closer to company’s consumers
Expanded number of stores, marketing and sales promotion measures
Sustainability of competitive strategy: Analysis of their strategic capability
Use VRIO for competitive strategy, not corporate strategy
2x2 used to define distinctive capabilities
Assignment 3
ECCO’s strategic direction: Ansoff’s growth matrix
Company Overview
Shoe manufacturer
From cow to shoe
Founded by Karl Toosbuy in 1963
Family-owned company
Revenue of 660 million euros in 2009
More than 17,000 employees from over 50 countries
Assignment 1
Analyse and define external strategic issues faced by ECCO. In doing so describe what you see are key influential factors for the further success of ECCO.
External strategic issues:
PESTEL
Political:
Economical: Growing markets in Scandinavia and Asia, weakening markets in US, UK, Russia and Ukraine
Social: changing cultures and demographics
Technological: online shopping?
Ecological: Impact of leather on environment?
Legal:
key drivers of change. expectations and purposes?
Define strategic business unit by market/competence-based criteria
Define the industry, industry group, industry life cycle, strategic group analysis before talking about porter’s 5. If not the forces will be too general
Key influential factors for ECCO’s further success:
Assignment 2
Competitive strategy of ECCO:
Basis of competitive strategy:
Bases of competitive advantages:
Cost efficiency
Automated the shoemaking process as much as possible
Adjusted production capacity and reduced cost during economic downturn
Uniqueness in product
BIOM: Revolutionary running shoe in market based on natural movements of the body Very well received, will add new models
Increased revenue for company
Uniqueness in process
Developed technology, brought in assembly lines and introduced robot technology and large-scale assembly machines Became world leader in direct injection technology.
Reduced cost
Marketing
Opened new stores to meet strategy of becoming closer to company’s consumers
Expanded number of stores, marketing and sales promotion measures
Sustainability of competitive strategy: Analysis of their strategic capability
Use VRIO for competitive strategy, not corporate strategy
2x2 used to define distinctive capabilities
Assignment 3
ECCO’s strategic direction: Ansoff’s growth matrix