ECCO A/S (ECCO) was successful in the footwear business by focusing on production technology and ensuring quality by maintaining total control of the whole value chain from "cow to shoe." As ECCO grew and faced increased international competition, various value chain actions, tanning and chiefly generation, were offshored to low-cost states.
The completely integrated value chain tied up considerable capital and management consideration in tanneries and production facilities, which could have been used to fortify the branding and advertising of ECCO's shoes. Furthermore, an increasingly complicated and dispersed world-wide value chain configuration presented organizational and managerial challenges affecting communication, coordination and logistics.
This case examines the financial, organizational and managerial challenges of maintaining a very integrated international value chain and asks pupils to ascertain the appropriateness of this set-up in the context of an increasingly market-oriented business.
PUBLICATION DATE: April 24, 2008 PRODUCT #: 908M14-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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