Case 4-2 : ECCO A/S – Global Value Chain Management.
ECCO is a worldwide company acting on the market of the shoes manufacturing. It has been created for more than 40 years and is one of the leaders of the market. The company key point in his product is the quality with a combine production: manual and machinery, a production of their leather made in-house and a unique direct injection technology. With this different assets the firm aimed to become the producer of the world’s most comfortable and modern footwear for work, leisure and festive occasion with a target market constituted by all gender: men, women and children. ECCO has an international profile on several points, first with his workforce to guarantee to use capabilities, skills and knowledge of each one at its best interest, second with his place of production and of sells with the United States, Germany and Japan as his main Market. Despite of its growing success, we can notice that the company had to face to a stagnating productivity and to some declining margins from 1999 to 2003 and to an increase of his debts. 2004 brings signs of improvements, nevertheless with their future plan to implant 5 closely connected factories over the next four years in China to increase production, sell more and enter in the Chinese market, the company needs to rethink some of its organization.
In a first time, the company’s main goal in its production of shoes is the quality of the product more than the design contrary to most of his concurrent nevertheless some of them are on the sale level in the market just thanks to the design of their shoes without the quality that ECCO bring to its shoes. That’s why I would advice to the company to put quality and design on the same level in term of requirements for the company. Indeed if the company reach this level on the market just with the quality of its product with more marketing and products that are more trendy, the firm could erase some of its direct...
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