Case Study Of ECCO To The Differentiation Strategy

Decent Essays
As we know every business must design a strategy for achieving its goals. Porter has distinguished three generic strategies in function of competitive advantage and competitive scope which provide a good starting point for strategic thinking. These three strategies are the followings:
1. Overall cost leadership: firms who follow this strategy work hard to achieve the lowest production and distribution costs so they can win a large market share.
2. Differentiation: in this case the company concentrates on achieving superior performance in an important customer benefit area. The firm seeks quality leadership by making products with the best components, putting them together expertly and communicating their quality.
3. Focus: this strategy
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(www.albany.edu/faculty/vanness/682/682ppt/C5.pptx, found: 15.10.2014.)
6. PEST analysis

With the introduction of open international trade, business now has more opportunities to offer their products and services to foreign markets. In order to do this, companies need to answer questions like to which foreign market will they enter, how will they enter it and what is the proper time to enter it. After identifying its market prospect, it is important that the company analyze and understand its selected market segments.
As we could experience international expansion is one of the main representations of business success because it suggests the company’s ability to meet foreign markets demands and supply resources. However in the global trade there are many risks. The companies must ensure that they are capable of overcoming possible risks and they will be able to achieve success.
One way of doing this is by analyzing the environment the companies wish to invest on. PEST Analysis is the tool or method of examining the many different external factors that affects an
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• Employment law
• Political stability/ instability
• Trade and tariff restrictions
• Environmental regulations

6.2 Economic factors:

It is important that the company must also give enough attention to its economic stability. The economic factor involves the context in which an industry belongs, for example general economic conditions of the region, conditions in relations with other industries or the situation of the resource market:
• Economic growth, high welfare: BRICS are the biggest and fastest growing emerging economies. In the next 40 years they can become larger economies than the US and the developed economies of Europe.
• General taxation issues
• Inflation
• Exchange rates: the BRICS real exchange rates can be appreciated by up to 300% over the next 50 years.
• Economic stability: BRICS already account for 40% of global GDP. By 2050 BRICS countries expect to account for over 40% of the world’s population and 60% of global GDP.
• Interest rates
• Specific industry factors
• Consumer seasonality

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