Global Value Chain Management - 1307 Words

Technology in Business  « Do you adapt or redesign your business model for the Internet?If you don’t want your unprofitable customers someone else will  » ECCO A/S – Global value chain management case study Wednesday, August 31st, 2011 at 8:27 am My operations management coursework was based on the ECCO A/S – Global Value Chain Management case study which is an interesting paper on ECCO A/S (ECCO) who have been very successful in the footwear industry by focusing on production technology and assuring quality by maintaining full control of the entire value chain from â€Å"cow to shoe.†. ECCO follow a differentiation business strategy producing the highest quality shoes and they use their operations as one of their main points of†¦show more content†¦If operations were outsourced, they would not be able to oversee all aspects of production and insure that quality was high. Vertical Value Chain Benefits Hosting your own in-house vertical value chain has many benefits for a business like ECCO. ECCO s many facilities in different countries can take advantage of local resources and expertise in different areas like the leather research center in Denmark. Another benefit is being able to oversee operations and produce products faster. Inventory can be controlled efficiently, meaning that ECCO can wait longer to produce items to match market mean due to how long it would take to place an order with an outsourced manufacturer and to receive that order to deliver to customers. Vertical Value Chain Cons The main negative for ECCO in having an integrated vertical value chain is increased costs over competitors. For most shoe companies, the cheapest option is to outsource manufacturing, which is what most of ECCO s competitors have done. Another con of keeping production within the company is that when no competition is present, often production is slow and inefficient. Managing the cons is vital for ECCO, which they have been able to do. Economic Strategic Factors Considered with Integrated Value Chain Economic factors that are faced with an integrated value chain include high labor costs. If producing your ownShow MoreRelatedThe Global Value Chain Management803 Words   |  3 PagesThe emergence of global value chains has been one of the most important paths to economic growth in the age of globalization. A global value chain typically focuses on building efficiencies for business on the inbound and outbound logistics component of the value chain, where the process of producing a good has been divided into multiple components. Any given good is the product of resource extractors, component subcontractors, assembly and logistics, in addition to the design and marketing functionsRead MoreEccos global value chain management1730 Words   |  7 PagesECCO A/S-GLOBAL VALUE CHAIN MANAGEMENT ANALYSIS 1. Describe the competitive environment of ECCO and determine how well ECCO is positioned (vis-à  -vis the competitors) to take advantage of changes in the industry. http://wulibraries.typepad.com/files/footwear.pdf 2. Analyze ECCO’s global value chain. How well does this configuration match the drivers in the industry? Analyze ECCO’s global value chain. High demand for quality and reduced lead times led the company to a self-sufficiency approach onRead MoreEcco a/S – Global Value Chain Management1709 Words   |  7 PagesFirm in a Global Economy ECCO A/S – Global Value Chain Management Question 1: 1. Relate the Ecco case to the conceptualization of the organization as a global factory. 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