This document outlines a strategic analysis and recommendations for Danish shoe manufacturer Ecco. It discusses Ecco's history and vision to be innovators in comfort footwear. Currently, Ecco sells premium casual, outdoor and semi-sport shoes primarily in Germany, Japan and the US. The document analyzes Ecco's value chain and strategic issues around maintaining world-class technology. It considers alternatives like outsourcing production and distribution to exploit efficiencies and expand into new markets in China. The recommendations are to outsource distribution to reduce costs and focus on branding, partner with external marketing teams, clearly define target markets, and increase marketing of Ecco's tannery operations and leather materials to other industries.

1. Mehmet Doruk Tekin
Fei Yan
Gianna Passarelli
Jacqueline Sanita
Taylor Tobey

2. I. Company Background & History
II. Vision
III. Current State
IV. Value Chain
V. Strategic Issues
VI. Internal & External Analysis
VII. Alternatives
VIII. Recommendations
IX. Conclusion: Hambrick

3. ●
Danish, family owned shoe manufacturer founded in 1963 by Karl Toosbuy
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Enduring factor: quality and usability
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Slogan: “A perfect fit - a simple idea”
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Shoe types: casual, outdoor, semi-sport (premium price)
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Sell primarily in Germany, Japan, and U.S.

4. To be the “most wanted brand
within innovation and comfort
footwear - a position that only
can be attained by constantly and
courageously researching new
paths, investing in employees,
in our core competencies of
product development and
production technology.”

5. Realizing “world-class” technology cannot be
sustained forever
Investing in China:
optimize global
value chain
Exploit efficiencies
Increased brand
visibility
New markets?

6. Layer of Advantage
Tanneries
Manufacturing
Distribution
Ecco outlets and
multi-brand
stores

7. How can Ecco find a strategic fit between their
core values in their global value chain and the
changing market?
Outsourcing
Marketing

10. IPO
Restructure of tanneries into SBU
Outsource Tanning
Reposition brand as fashionable
Outside executive recruitment
Outsource distribution
Increase marketing efforts

11. Outsource Distribution
Easier entry into strong, emerging
markets
Increased focus on manufacturing
core competencies
Cost savings
Keep up with competitors

12. Transparency
• Strengthen executive marketing team; external
recruitment
• Core competency transparent = brand visibility
Clearly define market
• Example: Golf Industry
• Increase endorsements & new markets of Japan,
Korea, & America
B2B marketing of leather industry
• Tannery exposure
• Expand auto & furniture sectors

13. 




Quality = premium prices
Cut distribution costs
Expanded leather revenue
Marketing efforts = brand
awareness = sales



International Expansion
Immediate marketing of
golf shoes & B2B leather
materials
Future marketing of
entire product line


Casual, outdoor, semi-sport,
sport (golf)
Middle to upper- class (3060s)
Worldwide




Quality and care
Unique production
technology
Partneriships with
external distribution
channels in various
markets
New market-oriented
executives

14. Any Question?