Ecco A/S Global Chain Management Essay

669 words - 3 pages

ECCO A/S – Global Value Chain Management
Analyze ECCO’s global value chain. That is where in the companies processes does the company accumulate value that results in profitability?
ECCO A/S had been very successful in the footwear industry by focusing on production technology and giving quality by maintaining full control of the entire value chain from "cow to shoe." ECCO has a unique competitive environment and holds a distinct advantage from it's competitors. Most of ECCO's competitors are "branded marketers", who do not produce most of their offerings, they brand and market them. These competitors include Clarks, Geox, and Timberland, along with indirect competitors such as Nike and ...view middle of the document...

They have tanneries in the Netherlands, Indonesia, and Thailand. ECCO uses over one million cows each year for the leather used for their shoes . They were able to gain the expertise from an acquired tannery in the Netherlands and a leather research center in Denmark. Because of these acquisitions, ECCO has a huge advantage over their competitors that no longer own their own tanneries, but used suppliers outside of the company. Nike and Timberland outsourced nearly all of their manufacturing, while ECCO still produces 80% of it's products in it's own facilities. Using factories in different locations and gaining expertise from other countries has added quality and efficiency to production.
ECCO's main market is driven by demand for quality, comfortable casual shoes. ECCO's value chain has taken advantage of this driving factor by controlling the quality and production of their own shoes to make sure quality is high. If operations were outsourced, they would not be able to oversee all aspects of production and cover...

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