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MGSC01 - MIDTERM CASE: ECCO A/S - Global Value Chain Management

Analyze the problem
Decision Criteria

Good to have a contingency plan (backup plan)

Key questions: - If I’m right so far, then what? What are the implications - What is the larger context? - What else do I know? Personal? - What alternatives do I have? - What am I missing?

Goals: The plan was to build five closely connected factories over the next four years with a total capacity of five million pairs of shoes per year, serving both export needs and the Chinese market, which was expected to grow in the future.
Produce the world’s most comfortable and modern footwear for work and leisure.
Increase revenue to 8 billion and to 9 billion by 2013, selling 24 million pairs of shoes a year.
Increase production capacity by 15% per year

Product Market Focus: aim at becoming better at telling what we stand for.

Value Proposition:

Core Activities: produced 80% of its shoes in-house

Vision – integrating the global value chain - To be the most wanted brand within innovation and comfort footwear. - Position can only be attained by constantly and courageously researching new paths, investing in employees, in core competencies of product development and production technology.

80% of the company’s leaders should come from inside ECCO.

2004 Sales
Children 11%
Ladies 47
Men 30
Sports 12 (outdoor, walking, running and golf shoes) ***The golf shoes started off as a joke between Toosbuy and Dieter Kasprzak. “ECCO Golf Footwear was preferred by more than 90% of golfers over current brands.

Production Process (pg5 – first paragraph)
Laboratory production

Strengths - Technology and ability to produce high-tech produtcts

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