Ecco A/S –Global Value Chain Management Harvard Case Solution & Analysis


  • The company has the opportunity to frameitself as the greener company that will open the gateways in the existing market formarketpenetrationwhile also offer the company to develop a sustainable market approach to tap into different market.
  • The company can enter into specialized shoes market like golf and other sport wear, as it is alreadypreferred by 90% of the Golf players in the market.


  • The company has strong brand dilution threat from the main competitors i.e. Clarks, Timberland and Geox.
  • The threat of initiation is also high in the Chinese market, hence making it complicated for the company to transform the overall market strategy.


Since the company is shifting from the in-side out strategy to outside in strategy, which means developing a customer oriented business strategy that enables the ECCO to lead the market, the following initiativesare to be taken in order to cope up with the change and sync with market dynamics.

Initiative:1- The company should develop a strong marketing plan for the Chinese market as well as the existing markets. In doing so, ECCO should customize the product line and the offering according to the market.Since the basic element of the shoes is leather, it should consolidate the resources from cost effective locations like Slovakiaand Vietnam to other regional markets.This will allow the company to save cost. However, while customizing the product, theECCO should take into consideration the customer insight, environmental issues and market dynamics to set the product design and marketing plan.Since in China, the weather is mostly humid and rainy, alongwiththe presence of multiple suppliers, it should develop a differentiationfocusstrategy for the Chinese markets, along with the expansion in the product line, according to the demographics. This will allow the ECCO to develop the market strategy based on customer insightand hence will allow to lead the markets effectively. In order to pursue the initiative, the company should develop two distribution centers in China and in Denmark, Thailand, and Indonesia. Suchseparatedistributioncenters will allow the company to reducethe replenishmenttime, and also control the inventory holding cost.Hence maintaining the value chain and effectiveness of the business in the market. (Shamsuzzoha(, 2012)

Initiative: 2- Instead of developing the customization strategy, the company should develop global brand strategy incorporating the markettrendsat agloballevel. In doing so, the company should sync with the market dynamics and trends e.g. new designs, Anti-slip shoes, Greener technology, high value shoes and exceptional customer service, to augment the brand value.This will allow ECCO to continually evolve its position in the market and develop the business model on innovation.Such initiative will allow the company to sustain its position and also the competitiveadvantage in the market in the long run. In order to pursue the initiative, the company requires to focus on the different parameters and aspects of developing a changedorganizationalstrategy.For example,since the trend of greener products is rising on a global level, the companycan brandits shoesas the green product.In doingso, it has to strategize its operationalactivitiesand improve thetechnology that minimizes the wastes and also controls the emission in the environment.Such value proposition will allow theECCO to delve deeply into the markets, leading to a sustainable growth and increasing market share. (Intel, 2011)..............



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