Marketing Strategy - Case Analysis (Ecco)
Marketing Strategy Case Questions (Galka)
ECCO A/S
Global Value Chain Management
Marketing Strategy Term 4 2011
Team #6
03 August 2011
1. Perform a Porter’s Five Force Analysis
Force 1: Barriers to Entry
| |Questions |Answer |Reason for Barriers to entry |
|1. |Do Larger firms have a cost/performance |Yes (Positive) |Larger firms like ECCO have resources to cut down their |
| |advantage? | |production cost and can invest more on technology and R&D to |
| | | |consolidate the market. |
|2. |Are there any proprietary product |Yes (Positive) |Firms believe in core competencies of product development and |
| |differences? | |production technology focusing on differentiating their product |
| | | |from competitors. |
|3. |Are there Established Brands? |Yes (Negative) |Threat from well established brands for market share and profit.|
|4. |Do customers incur large switching |Yes (Positive) |Switching cost incurred in terms of quality and usability which |
| |costs? | |cannot be leveraged by buying other convenient and less |
| | | |expensive products. |
|5. |Is large amount of capital required for |Yes (Positive) |High investment in assets like Specialized technology, |
| |entry?
ECCO A/S
Global Value Chain Management
Marketing Strategy Term 4 2011
Team #6
03 August 2011
1. Perform a Porter’s Five Force Analysis
Force 1: Barriers to Entry
| |Questions |Answer |Reason for Barriers to entry |
|1. |Do Larger firms have a cost/performance |Yes (Positive) |Larger firms like ECCO have resources to cut down their |
| |advantage? | |production cost and can invest more on technology and R&D to |
| | | |consolidate the market. |
|2. |Are there any proprietary product |Yes (Positive) |Firms believe in core competencies of product development and |
| |differences? | |production technology focusing on differentiating their product |
| | | |from competitors. |
|3. |Are there Established Brands? |Yes (Negative) |Threat from well established brands for market share and profit.|
|4. |Do customers incur large switching |Yes (Positive) |Switching cost incurred in terms of quality and usability which |
| |costs? | |cannot be leveraged by buying other convenient and less |
| | | |expensive products. |
|5. |Is large amount of capital required for |Yes (Positive) |High investment in assets like Specialized technology, |
| |entry?
References: Arker, D. A., & Mills, M. (2005). Strategic Market Management (Pacific Rim ed.). Milton: John Wiley & Sons Australia. Galka, R. (2009). Marketing Strategy [Lecture Handouts]. Auckland, New Zealand: Auckland University of Technology: Master of Business Administration. Iqbal, Z. (2009). Marketing Strategy [Lecture Handouts]. Auckland, New Zealand: Auckland University of Technology: Master of Business Administration. Nielsen, B. B., Pedersen, T., & Pyndt, J. (2008). ECCO A/S - Global Value Chain Management. Richard Ivey School of Business, 1-21.[pic][pic][pic][pic][pic][pic][pic]