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ECCO A/S – Global value chain management case study
Wednesday, August 31st, 2011 at 8:27 am
My operations management coursework was based on the ECCO A/S – Global Value Chain Management case study which is an interesting paper on ECCO A/S (ECCO) who have been very successful in the footwear industry by focusing on production technology and assuring quality by maintaining full control of the entire value chain from “cow to shoe.”.
ECCO follow a differentiation business strategy producing the highest quality shoes and they use their operations as one of their main points of competitive advantage.
ECCO’s operations strategy is top-down (i.e. formed in pursuit of its business strategy) and operations-led (i.e. based on the resources and capabilities within its operations). They prioritise quality and reliability; the supply chain is configured to produce in accordance with specification and without error.
ECCO has a very atypical operations strategy compared with their industry peers. Unlike their “branded marketer” competitors they produce their own materials and manufacture 80% of their own products in factories around the world. Owning and controlling the entire value chain gives them huge flexibility and allows them to maintain the highest levels of quality.
The following is a paper from my international business class based off of the Harvard Business Law case on ECCO A/S Global Value Chain Management.
Competitive Environment
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