Ecco a/S Global Value Chain Management Essay

1966 Words8 Pages
Introduction ECCO is a longstanding shoe manufacturer from Denmark. It has a long tradition in making good quality shoes, developing production technologies and tanning leather. It is a globalized organization with future plans of opening a plant in China. Besides different questions and issues facing that opening, ECCO also has to start thinking about its marketing strategy and its focus towards its customer perception. Environment The shoe market is a highly competitive market in the USA and around the world. Today many international shoe manufacturers are competing for the biggest global market share within their segments. Different shoe producers generally focus on and compete in different segments, such as men, women, children, casual, sports, outdoors, and different seasons’ shoes, etc. ECCO’s main competitors within its segments are GEOX, Clarks and Timberland. Due to the global market, easier trading regulations and strong competition, it is highly important for successful shoe producers to be present in low cost manufacturing countries. Being able to compete means adapting to today’s way of business, production and distribution. If the main competitors are producing and/or distributing their products in a certain country or area, the target company eventually has to follow in order to succeed in the long turn. These are some of the reasons why ECCO is planning on entering China and starting production there. The Company ECCO was founded in Denmark in 1963 by Karl Toosbuy. For a long time it had been quite successful in the footwear industry by focusing on high-end production technologies and assuring high quality by controlling the entire value chain from “cow to shoe”. Today ECCO is represented globally and is constantly working on new markets such as Asia and Eastern Europe. In 2004 it exported more than 90% of its production, mainly to its biggest

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