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Ecco Case Study

Decent Essays

Understand the nature of the business, the industry and key competitors. ECCO has a unique competitive environment and holds a distinct advantage from it 's competitors. Most of ECCO 's competitors are "branded marketers", who do not produce most of their offerings, they brand and market them. These competitors include Clarks, Geox, and Timberland, along with indirect competitors such as Nike and Adidas. ECCO is not a branded marketer, but uses a fully integrated vertical value chain where they produce many of their own materials. ECCO makes nearly all of their own products in different countries, but in their own facilities unlike competitors. ECCO produces high-quality footwear that is mainly in the casual category. In the last …show more content…

Strategic factors include keeping competition high and not relying on just one factory for manufacturing. ECCO has several plants that manufacture the shoes and deal with tanning, which is good for competition and to keep quality high. Identify key personnel and understand their management /leadership styles. Family ownership affects ECCO in several ways. It has allowed the company to keep executives with knowledge of the company in key positions due to their loyalty to the company. CEO Karl Toosbuy had left the company several times only to comeback because of his experience and knowledge of the company. Karl Toosbuy commented on the family ownership structure by stating that "The family can take higher risks", and "we act instead of wait". Toosbuy believes that the family ownership is a strength and not a weakness for ECCO. Having the company owner within a family means that they are not necessarily the smartest and most qualified business people, but could have ownership in the company just because of their bloodline. Corporate Ownership The corporate ownership structure is the most popular structure for large companies. Often when family is involved, unnecessary family issues can interfere with the business. Corporate ownership keeps employees competitive, as their jobs within

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