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1Case Analysis: ECCO A/S – Global Value Chain ManagementCase Analysis: ECCO A/S – Global Value Chain ManagementBUS 545-Global Business ManagementRomel BeshaCalifornia Baptist University
2Case Analysis: ECCO A/S – Global Value Chain ManagementAbstractThis paper will examine the current situation and the company background of ECCO A/S. The competition in the market will be discussed to emphasize the importance of ECCO’s global valuechain. In specific, this paper will address the integrated vertical value chain as well as the strategic perspective of ECCO in order to make a clarified decisions on behalf of ECCO.
3Case Analysis: ECCO A/S – Global Value Chain ManagementBackground: The philosophy of ECCO began in Bredebro, Denmark in 1963. The vision of its founder, Karl Toosbuy was to create a shoe that was pleasant to walk in, regardless of the weather or terrain. As a company who strived to lead the industry, they consistently focused on research and development to create the optimal shoe for their customers. Their ultimate goal was to create the most comfortable shoe, while also keeping an eye on fashion. As their senior vice president states, “we do not sell shows where the brand name is the most important and quality isa secondary consideration. Primarily, we sell high-quality shoes and that is where we seek recognition” (Nielsen, Pedersen, and Pyndt, 2008, p. 2). This is an important notion when considering ECCO’s positioning in the market and how they stand against their competitors. ECCO’s production of comfortable shoes led to the introduction of a variety of sporting shoes as well. In a research study led by Rankmark in the United States, it was determined that 90% of golfers preferred ECCO golf shoes to their current brand (Nielsen, Pedersen, and Pryndt, 2008, p. 2). This speaks to the overall quality and likeability of ECCO’s shoes, but not necessarily theirpositioning against their competitors. Competitive Environment: The competitive landscape for ECCO was quite a saturated one and highly subjective to consumer preferences. As the competition looked for ways to reduce the costof production, they turned to the use of machines and streamlined production lines. In recent years, it can be seen that streetwear, casual, and sportswear has all melded together into one unique style of its own. This blur can cause some confusion in determining who ECCO’s real competitors are. On one hand, ECCO faced competition from Nike and Reebok in regard to their sporting shoes. While on the other hand, they faced pressure from their own declared competition, Geox, Clarks, and Timberland. This competition came as a threat to ECCO, who knew that it had to establish itself further in the market in order to succeed. To further understand