Ecco - Market Analysis
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 kept within the company and ECCO refrained from issuing Initial Public Offerings despite financial constraints in the beginning of the 21st century as the company believed that that would inhibit their risk taking abilities.
ECCO’s production strategy has been unique in that 80% of the production was in-house. The company regarded their ‘direct injected’ technology as a key asset and believed it gave them an edge over the competitors.
A decade of more than satisfactory growth later, ECCO ventured towards internationalizing its operations by establishing its upper production unit in Brazil in 1974. Since then, the chief drivers of internationalization have been i) creation of new markets ii) leveraging the relatively cheap cost of labour.
By May 2004, ECCO was finalizing its plans to set up production in China.
The Report has covered Situational Analysis for ECCO’s present day operations and market presence. It has covered Competitor Analysis taking into account its main rivals in the international market. The report also contains valuable recommendations for future growth strategies.
TABLE OF CONTENTS EXECUTIVE SUMMARY 1 SITUATIONAL ANALYSIS: 3 Products and Markets: 4 The Global Value Chain 4 Advantages of the
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 kept within the company and ECCO refrained from issuing Initial Public Offerings despite financial constraints in the beginning of the 21st century as the company believed that that would inhibit their risk taking abilities.
ECCO’s production strategy has been unique in that 80% of the production was in-house. The company regarded their ‘direct injected’ technology as a key asset and believed it gave them an edge over the competitors.
A decade of more than satisfactory growth later, ECCO ventured towards internationalizing its operations by establishing its upper production unit in Brazil in 1974. Since then, the chief drivers of internationalization have been i) creation of new markets ii) leveraging the relatively cheap cost of labour.
By May 2004, ECCO was finalizing its plans to set up production in China.
The Report has covered Situational Analysis for ECCO’s present day operations and market presence. It has covered Competitor Analysis taking into account its main rivals in the international market. The report also contains valuable recommendations for future growth strategies.
TABLE OF CONTENTS EXECUTIVE SUMMARY 1 SITUATIONAL ANALYSIS: 3 Products and Markets: 4 The Global Value Chain 4 Advantages of the