Ecco
1) Describe the competitive environment of ECCO and determine how well ECCO is positioned (vis-à-vis competitors) to take advantage of changes in the industry. Use Porter’s five-forces model, the PEST model, and a SWOT analysis to explain your answer. (400 words)
ECCO produces mainly casual footwear with an intense focus on high-quality production. In order to deliver the highest quality product, ECCO maintained a fully vertically integrated value chain situated in various countries leveraging local expertise. Because of this unique situation, competitors found it very difficult to sustain a comparable level of quality.
As noted in the case, ECCO finds itself in a highly competitive industry. The primary competitors identified in the case are: Timberland, Clarks, and Geox. For a brief analysis of the strengths of each of these competitors, please refer to Figure 3. As ECCO has recently entered the golf shoe market, they also face stiff competition from firms such as Nike, Rebok, and Adidas.
ECCO stands in a unique position among the competitors in that it is the only non-branded manufacturer. The primary competitors of ECCO identified in the case outsource the majority of their manufacturing then uniquely brand the end product. These firms depend on brand recognition and marketing to drive consumer decision, not intrinsic quality. By contrast, ECCO is very focused on quality, and maintains control of 80% of manufacturing in-house.
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. A SWOT analysis can be found in Figure 1, and Porter’s Five Forces analysis can be found in Figure 2.
As a result of ECCO’s agility, changes in the industry can
ECCO produces mainly casual footwear with an intense focus on high-quality production. In order to deliver the highest quality product, ECCO maintained a fully vertically integrated value chain situated in various countries leveraging local expertise. Because of this unique situation, competitors found it very difficult to sustain a comparable level of quality.
As noted in the case, ECCO finds itself in a highly competitive industry. The primary competitors identified in the case are: Timberland, Clarks, and Geox. For a brief analysis of the strengths of each of these competitors, please refer to Figure 3. As ECCO has recently entered the golf shoe market, they also face stiff competition from firms such as Nike, Rebok, and Adidas.
ECCO stands in a unique position among the competitors in that it is the only non-branded manufacturer. The primary competitors of ECCO identified in the case outsource the majority of their manufacturing then uniquely brand the end product. These firms depend on brand recognition and marketing to drive consumer decision, not intrinsic quality. By contrast, ECCO is very focused on quality, and maintains control of 80% of manufacturing in-house.
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. A SWOT analysis can be found in Figure 1, and Porter’s Five Forces analysis can be found in Figure 2.
As a result of ECCO’s agility, changes in the industry can