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Comfort and Cost are also significant factors for ensuring success.
Rivalry:
The market for lifestyle casual footwear is highly competitive and is very subjective to consumer preferences. In the pursuit of completive pricing each company was looking ways to cut the costs and increase efficiency in the supply chain to reduce time to market.
There was a very thin line of differentiation between casual and athletic footwear and there was a direct conflict of interest of ECCO with major athletic brands such as Nike and Reebok, case in point the ECCO’s foray into golf shoes. However considering the homogeneity of the products manufactured, ECCO’s main competitors were Geox, Clarks and Timberland. With ECCO attaining roughly 12% of market the threat of competitors was HIGH.
Entry Barriers:
The threat of new competitors is determined by the extent to which there is a problem with high entry barriers. These entry barriers should be easy to overcome, if new entrants should have opportunities to compete against the existing …show more content…
The company analysis consists of a brief presentation of ECCO, their organization, products, financial situation etc.
5 C’s with ECCO
Company:
* Product line – The ECCO group produces an assortment of shoes which included casual and outdoor shoes for men, ladies, and children, as well as semi-sport shoes, for two different seasons — spring/summer and autumn/winter. They also introduced golf shoes which were preferred by over 90% golfers.
* Technology and experience – the company was pioneer of direct injected technology, Production technology is their key competitive advantage and they invested heavily on training and equipment costs to upgrade the skills of their employees .
* Culture – Closed ownership among the family and the company encouraged that over 80 per cent of the company’s leaders should come from inside ECCO
* Mission – To develop shoes that are pleasant to walk, regardless of the weather conditions and a vision to be the “most wanted brand within innovation and comfort footwear” by investing in human resources and its core competencies. …show more content…
Value Chain Analysis-
ECCO focused on the entire value chain from raw hides to usable leather products which provide quality to its consumers and to maintain a long term sustainably.
The company streamlined its sourcing and laid stress on the quality levels by reducing the number of vendors & fostering new partnership.From 1999 to 2003 the operating margins fell by 15% and debts also increased , but by 2004, however, improvements were brought about by streamlining logistics which freed up capital and keeping pace with the in-demand market products.
* As a measure to maintain quality the company acquired tanneries & research units. To improve on the current skills new trainings were provided by the company.
* As a measure to compare to its competitors ECCO outsourced only 20 % of its production and that too only for the products for which ECCO was not technologically
Rivalry:
The market for lifestyle casual footwear is highly competitive and is very subjective to consumer preferences. In the pursuit of completive pricing each company was looking ways to cut the costs and increase efficiency in the supply chain to reduce time to market.
There was a very thin line of differentiation between casual and athletic footwear and there was a direct conflict of interest of ECCO with major athletic brands such as Nike and Reebok, case in point the ECCO’s foray into golf shoes. However considering the homogeneity of the products manufactured, ECCO’s main competitors were Geox, Clarks and Timberland. With ECCO attaining roughly 12% of market the threat of competitors was HIGH.
Entry Barriers:
The threat of new competitors is determined by the extent to which there is a problem with high entry barriers. These entry barriers should be easy to overcome, if new entrants should have opportunities to compete against the existing …show more content…
The company analysis consists of a brief presentation of ECCO, their organization, products, financial situation etc.
5 C’s with ECCO
Company:
* Product line – The ECCO group produces an assortment of shoes which included casual and outdoor shoes for men, ladies, and children, as well as semi-sport shoes, for two different seasons — spring/summer and autumn/winter. They also introduced golf shoes which were preferred by over 90% golfers.
* Technology and experience – the company was pioneer of direct injected technology, Production technology is their key competitive advantage and they invested heavily on training and equipment costs to upgrade the skills of their employees .
* Culture – Closed ownership among the family and the company encouraged that over 80 per cent of the company’s leaders should come from inside ECCO
* Mission – To develop shoes that are pleasant to walk, regardless of the weather conditions and a vision to be the “most wanted brand within innovation and comfort footwear” by investing in human resources and its core competencies. …show more content…
Value Chain Analysis-
ECCO focused on the entire value chain from raw hides to usable leather products which provide quality to its consumers and to maintain a long term sustainably.
The company streamlined its sourcing and laid stress on the quality levels by reducing the number of vendors & fostering new partnership.From 1999 to 2003 the operating margins fell by 15% and debts also increased , but by 2004, however, improvements were brought about by streamlining logistics which freed up capital and keeping pace with the in-demand market products.
* As a measure to maintain quality the company acquired tanneries & research units. To improve on the current skills new trainings were provided by the company.
* As a measure to compare to its competitors ECCO outsourced only 20 % of its production and that too only for the products for which ECCO was not technologically