Ecco Case

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ECCO CASE – PROJECT 1
Table of contents
Table of contents
Question
Theory used in this report
Data collection
Company description
Financial situation
SW - Internal
Value Chain
R&D
Production
Sales and Marketing
Service
Core competences
Benchmark
Ansoff’s matrix of growth
GAP-analysis
OT - External
Porter’s 5 forces
Force 1: The degree of rivalry
Force 2: The threat of new entrants
Force 3: The threat of substitutes
Force 4: Buyer power
Force 5: Supplier power
Porter’s Diamond
PEST
Political factors
Economic factors
Social factors
Technological factor
SWOT
Generic Strategy
Conclusion
Sources
Appendixes

Question
For this assignment we have chosen question one: “The company’s strategic situation - using relevant theory and models” because it is the question we found the most interesting. For this, we have made three sub-questions to help us further narrow our report to the Hungarian market: * What is ECCO’s position on the Hungarian market?

* What challenges does ECCO face on the Hungarian market? * What strategies does ECCO have for entering new markets?

Theory used in this report
For this report we have used different theories that we have found relevant to further analyze ECCO on the Hungarian market. First off we analyzed the company using the value chain, to find the core competences we needed for benchmarking, together with the financial situation. For the external part of the SWOT analysis we have used the PEST analysis, Porter’s Diamond, Porter’s 5 forces and GAP analysis together with Ansoff’s Matrix of Growth. Data collection

This project is based on the assumption that all material used and present our strategy should cover the most essential aspects of the chosen subject. We, therefore, intended to include as broad a material selection as possible. Company description

The ECCO organization is composed of nine business units consisting of the three sales regions - ECCO Europe, ECCO Asia Pacific and ECCO Americas - together with ECCO’s five shoe factories and the ECCO Leather Group. In addition to the nine business units, ECCO’s head office in Denmark has an important development and support function in the areas of branding, sales, design, products and concepts, together with the corporate functions of IT, Finance, HR, Logistics, Corporate Conduct, Communication and Legal Affairs. ECCO’s core product is shoes, and with the introduction of several line extensions, ECCO now produces casual and outdoor shoes for men, ladies, and children, as well sport shoes such as running and golf shoes. In 1999 ECCO launched its first bag collection. On one side the competition comes from Nike, Reebok and Adidas, with their immense marketing budgets, and one the other side the casual lifestyle and business footwear segment represented by Geox, Lloyds, Clarks and Timberland. Even though ECCO has experienced success and increased growth in the sports division with their golf shoes they still consider their competitors in the casual lifestyle footwear segment their main competitors. ECCO has been exhibited at the Danish Design Center as an innovator in Scandinavian Design. In all ECCO designs there has to be a rationale, a contributing factor that add to the entire shoe. Designing is not just for the sake of design. This isn’t to say all ECCO shoes have a Danish look – the Danish element is that form has to fit function. The competitive scope of ECCO is the ability to control production throughout all aspects of the value chain, assuring that quality of raw materials, including the most important - leather. Furthermore, the “direct injection” technology used in production where the shoe bottom, including the out sole and heel are attached to the uppers under very high pressure, gives ECCO an important advantage. This technology has for a long time been attempted applied by competitors but the production process of ECCO includes several other adjustments which make the...
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