Ecco Supply Chain Analysis

Strategic Management

Introduction

Today the determined players are the manufactures and the consumers, who are responsible for the industrial and economical processes in the society. Manufactures of service and goods are necessary to meet the demand of the consumers, while on the other hand, consumers determine the success of the service or product being offered by manufactures in the market. With these interrelated jobs and responsibilities, it is crucial to identify and weigh the relevance of some related concepts and strategies to identify the success of companies. These concepts and theories are related to marketing theories and global value chain strategy. These concepts and theories gives companie the advantage in their successful establishment

The majority of ECCO’s competitors have outsourced their production and is using supply chain strategies such as strategic alliances, which enables them to focus their resources on product development, sales and marketing. Not only that, outsourcing can also help companies gain competitive advantage of increased product availability, reduced inventory, minimized total logistics cost and rapidly introduce their product to market without a significant investment in plans for capital equipment. For instance, Sobrero & Roberts (2001) presented a study evaluating the implications of 50 supplier-manufacturer relationships in the area of product development. There were three new product development projects which were utilized for the analysis of the inter-organizational relationships. The contributions of both parties were focusing on the products (a) design scope or the types of problem-solving activities utilized, as well as the (b) level of task interdependency or effects of the interaction between the manufacturer and the supplier to the product innovation practices. The results of the study indicated that the success of their relationship is highly dictated by the distribution of tasks and the type of problem-solving approaches as

One implementation stems from outsourcing, as communication is an important part of company operation, which is visible in reduced lead time, gathering, and exchange of information. Hormozi, Hostetler & Middleton (2003) points out not a new business practice, but has really just taken off recently; it describes outsourcing as companies searching for outside help to benefit their own company. Also by acknowledging outsourcing is not a new venture for businesses, due to companies constantly seek aids from other companies or experts in different fields to help different departments within the company. As mentioned earlier ECCO uses a 80/20 split strategy where the focus is more on offshoring but whereas outsourcing still plays a crucial role in their manufacturing process (Nielsen, Pedersen, & Pyndt 2008) Ved ikke om det er relevant, det var bar noget jeg fandt i den der ting vi købte, kan slettes hvis i ikk synes det skal være