Preview

Global Value Chain Management

Better Essays
Open Document
Open Document
1298 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Global Value Chain Management
Technology in Business
« Do you adapt or redesign your business model for the Internet?If you don’t want your unprofitable customers someone else will »
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

You May Also Find These Documents Helpful

  • Better Essays

    Supply chain management (SCM) is a crucial process for a company where steps take are taken to deliver a good or service. Benefits to the supply chain management contribute to helping create an integrated company where reducing costs is a priority. SCM is a network of companies such as, suppliers, manufacturers, and retailers that improve an industry. The footwear industry involves operating a global supply chain and this paper covers the purpose and value of each link of the supply chain.…

    • 917 Words
    • 3 Pages
    Better Essays
  • Good Essays

    Maple Leaf Shoes found its niche in being a low-cost provider, but production costs have been steadily rising. Not only is productivity an issue, but the company is faced with high labour costs. Compounding these issues is the fact that the price advantage was a critical aspect of the company’s marketing strategy, but competition from overseas has become a problem with high, quality shoes being made at a cheaper price due to the cessation of international trade barriers.…

    • 542 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Operation Management

    • 3835 Words
    • 16 Pages

    Somerset set up new strategy and tactics to meet the goals and improve the global supply chain. First, Somerset found out where the problems are and focused on its core competences that improve productivities and reduce inefficiency to win in the global market. Somerset furniture company (SFC) considered Quality and Time as its core competences. Second, SFC planned to implement and strengthen its core competences. SFC adopted EDI, RFID and RTA (ready to assembly) to acquire more competitiveness on time by reducing time, improving the delivery of economic value to customers. SFC accepted TQM including Lean production, Six Sigma and ISO 9000 to get a competing on quality for maintaining or improving the quality of an organization’s products and services. Keys to success in operation strategy lie in identifying what the priority choices are, understanding the consequences of each choice, and navigating the ensuring trade-offs .(Chase et al., 2006) Finally, SFC would resolve the problems one by one and achieve its improvement in the whole supply chains.…

    • 3835 Words
    • 16 Pages
    Best Essays
  • Good Essays

    Costco

    • 975 Words
    • 3 Pages

    The first area of Costco’s value-chain analysis will be the primary activities of inbound logistics and marketing and sales. Costco is extremely proficient and efficient in their procurement system, integrating a mix of human and technical skills and capabilities. One such instance is the development of a competent technique of delivering inbound cargo to their designated warehouses within the span of less than a day to ensure there is no time and cost wastage of leaving the items in the delivery trucks (Costco…

    • 975 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Competitive Profile Matrix for Crocs Inc. Crocs Inc. Nike Inc. Deckers Outdoor Critical Success Factors Weight Rating Score Rating Score Rating Score Advertising 0.15 2 0.30 3 0.45 2 0.30 Management 0.24 3 0.72 3 0.72 2 0.48 Global Expansion 0.01 2 0.02 3 0.03 1 0.01 Customer Loyalty 0.02 2 0.04 4 0.08 3 0.06 Product Quality 0.62 4 2.48 4 2.48 4 2.48 Financial Position 0.01 4 0.04 4 0.04 1 0.01 Price Competitiveness 0.03 4 0.12 2 0.06 3 0.09 Market Share 0.03 4 0.12 3 0.09 3 0.09 Total 1.00 3.84 3.96 3.53…

    • 97 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    As a result, the executive team creates and deploys strategies to negotiate fair, but advantageous purchasing agreements to lower costs and expand profit margins, develop systems and processes to leverage the organization’s scale to increase the volume and velocity of sales, and increase organizational efficiency by enhancing inventory management (Caldbeck, 2015). Moreover, Costco’s Executive team also diligently monitors company performance versus target and the competition to ensure the organization meets or exceeds the expectations of Wall Street Analysts, shareholders, and investors (Berman, 2014). In conclusion, Costco is poised now and for the foreseeable future to continue to skillfully convert strategy established by their executive team into actions executed by warehouse managers that produce industry leading…

    • 292 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Costco Case Analysis

    • 2165 Words
    • 9 Pages

    Costco’s strategy relies on 3 main components: Customers, Supplier and Operating efficiency. Costco delivers the value to its customers by: products provided by no more than 14% over distributors price, Lowest per unit price in the optimal container, Kirkland brand name quality at discount prices. Costco target the customer segment of middle class customers in addition to small business. Costco delivers the value to its suppliers by: Offering a broad distribution channel, Few SKUs allowing manufactures to reduce production costs, and so being a powerful purchaser. Costco achieves very good operating efficiency by: Running stores in no-frills warehouse facilities, reducing capital expenditures, cross-docking to reduce transportation costs. By gearing up such strategy with its business model, Costco was able to achieve a very competitive position with the largest market share.…

    • 2165 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Managing the Value Chain

    • 1038 Words
    • 4 Pages

    Write a one paragraph summary related to reviewing the following three critical concepts when thinking about how a value chain creates competitive advantage.…

    • 1038 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Revenue and Timberland

    • 2793 Words
    • 12 Pages

    Our team researched Timberland Co. and its industry using many different sources to come up with a thorough and persuasive report. We began by analyzing the footwear industry and its recent trends. The footwear industry is currently having record high sales and Timberland is leading the way. We have incorporated charts and graphs in our company analysis. Timberland is a very strong company and they have successfully overcome any minor problems they've encountered. Timberland has received various awards such as "Fortune Magazine 100 Best Places to Work" and they are globally known as a socially responsible corporation. Timberland has been expanding and making innovative products since the day they hit the shelves, leading to high success in the footwear industry. Timberland's investment in new information technology has allowed them to introduce a customization strategy. Combined, these factors have given Timberland a significantly high competitive advantage in the industry.…

    • 2793 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    References: Nielson, Bo, Pedersen, Torban, and Pyndt, Jacob (2008), ECCO A/S - Global Value Chain Management, Harvard Business Review…

    • 494 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Crocs Case Study

    • 309 Words
    • 2 Pages

    One of Croc’s core competencies is its revolutionary supply chain as discussed in class. Crocs have the ability to manufacture and deliver its products to retailers rapidly and produce an excessive quantity to avoid customer dissatisfaction. According to the case, in the traditional industry, retailers can only place bulk orders for each season many months in advance with little ability to make changes during the selling season. On the other hand, Croc’s model was to fill new orders within the season and quickly manufacture and ship new products to retail stores so to keep a positive relationship with its retailers. This gave Crocs a competitive advantage over its competitors. Another core competency is the ability to extend its marketing presence in foreign countries faster than other companies in the industry; this would allow the company to gain more information about the market and set the economies of scale of new entrants. This is called the early mover’s advantage as discussed in class. As a new entrant in the shoe industry, Crocs changed the pace of the industry by penetrating the market with its unique funky-looking shoe and expanded rapidly into foreign markets. Crocs created value and took advantage of the opportunity and did the Better off Test by visiting wide range of events worldwide introducing its product into the new market and talked to customers about the shoes. This helped the company to establish a momentum not only in the U.S. but also in the foreign countries. In addition, Crocs did the Ownership Test as discussed in class and became a Multi-National Company and used large contract manufacturers in different countries to produce its products and respond to its customers rapidly; however, because there are uncertainties in the market, Crocs became a MNC to minimize the risks of market…

    • 309 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Crocs’ supply chain revolution was the key to its success in the footwear industry. To discuss about it, let’s start with a review of the traditional model adopted by most of the companies in footwear industry.…

    • 817 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Ecco

    • 2065 Words
    • 9 Pages

    Because ECCO is uniquely positioned with full control of manufacturing and distribution, they have a level of agility and efficiency that is unattainable by competitors. Because of this, they can respond more quickly and efficiently to consumer demand. This ability, however, stands in contrast to their practice of resource driven and quality focused manufacturing.…

    • 2065 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Crocs's Core Competencies

    • 345 Words
    • 2 Pages

    One of Croc’s core competencies was their revolutionized supply chain. They created a model unheard of in the foot wear industry. The footwear industry was based on two seasons, spring and fall. Traditionally, bulk orders were placed by retailer’s months in advance for the upcoming season with little to no option to make changes during the selling season. Croc’s production and supply model eliminated the limitations placed on retailers for ordering product. They developed a model focused on customer needs. Croc’s has the ability to manufacture and deliver its products to retailers rapidly and produce in excessive quantities to avoid customer dissatisfaction. When a customer needed more products they would get it. Under this model retailers would not have to take a big risk and order product based on forecasting causing a possible shortage or overage in supply. Croc’s model was to fill orders in season, manufacture and produce these orders and distribute in order to maintain an excellent relationship with customers.…

    • 345 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    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.…

    • 1722 Words
    • 6 Pages
    Powerful Essays