Essay on Ecco Case Anwers

1271 Words May 28th, 2013 6 Pages
ECCO Case Study - Question 1

ECCO has a fully integrated vertical value chain. What are the pros and cons of that strategy? What economic and strategic factors should be analyzed to answer this question?

The pros of a having a fully integrated vertical supply chain for Ecco include the following:

* Improved supply chain coordination between tanning, manufacturing and distribution. This would ultimately help maintain quality and improve operational efficiencies such as logistics.

* There is also an increase in the areas possible for differentiation, as Ecco can control more inputs. An example might be in the tanning process, in which their competitors may have less control over.

* Ecco can also create greater
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* Greater utilization of co-location facilities * Long term contracts to mitigate macroeconomic risks * Franchise agreements with shoe distributors of appropriate branding.

ECCO Case Study - Question 2

Is ECCO following an inside-out or outside-in strategic perspective? What are the implications of this choice and how can ECCO increase their sales/marketing efforts?

Strategies:

Inside-out: An “inside-out” strategy is one that relies upon an internal orientation. It starts by asking what a company can do with existing resources, and looks to streamline operations through right sizing and repressed spending. While this approach can create short-term shareholder gains, an internal focus limits a company’s ability to notice and adapt to market changes.

Outside-in: Companies start with an external market orientation and vigilantly study customer trends in order to design their strategy. This is called “outside-in” thinking, using customer trends as a guide post for product and service development.

Key points to support that ECCO was following inside-out strategy:
1. ECCO has a corporate strategy process that relies on the core competencies of the company to drive change, product development and innovation as opposed to external influences such as market, competition and customer preferences. The assertion by inside-out strategists is that a company achieves greater efficiencies and adapt

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