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 on streamlining its entire value chain from raw hides to finished shoes unlike its major competitors who only designed and marketed their products without in house manufacturing.
In having a global network of tanneries, production facilities, research centers and distribution centers, ECCO is able to meet customer demands in specific geographic locations in terms of response times which lead to customer satisfaction.
Additionally the firm accrues from benefits of lower labor and production costs and different expertise levels in different locations which can be in turn transferred down to the customers. http://www.pwc.com/en_GX/gx/operations-consulting-services/pdf/pwc-supply-chain-and-risk-management.pdf According to Porter’s value chain framework, ECCO utilized various strategies to achieve a balance of responsiveness and efficiency in their efforts to improve its global value chain. http://www.strategicmanagementinsight.com/tools/value-chain-analysis.html Specifically, the firm utilized:
1) Firm infrastructure In having a factory based in Slovakia, uncertainty and risk of political instability in Thailand could be mitigated by helping to drive up volume between plants and ensuring quicker delivery speeds to markets in Russia & Poland. 2) Human Resources Management
ECCO ensured knowledge remained in the company through promoting workers from within and improving worker skills through trainings. 3) Technological Development
R&D activities were relocated to