Company Background

ECCO, the world leading brand of shoes, was found in Denmark by Karl Toosbuy in1963. ECCO’s philosophy -“the shoe must follow the foot”. Karl was the shoemaker realizing that shoes had to be made to fit the foot, as a result, functional, comfortable ECCO shoes were launched in the 1970s and became a huge success. ECCO is the only major shoe manufacturer to own and manage every step in the shoemaking process. ECCO produces leather and has its own tanneries, their design and production team innovate products, introduce pioneering and high-tech production methods, shoes are made in their own factories and are sold in ECCO retail shops globally. They constantly pressed for improvements to meet customer expectations.
On production level, ECCO is one of the five largest producers of quality leather in the world, ECCO produces leather in its own tanneries, they are mainly for use in ECCO shoes and about 33% are sold to external customers. They enjoy economies of scale in production.
On control aspect, Since ECCO produces leather in its tanneries, production of shoes in its own factories and operates its retail outlets, such production and distribution chain ensures efficiency in production, as well as promoting effective control.
Apart from the strengths and opportunities described above, there are at least three distinct capabilities that ECCO possesses, they are the competitive advantages that other competitors could not imitate. ECCO holds over 15 patents, covering new technological products and processes. ECCO is the 4th largest golf shoe supplier in the world, and is the most asked-for brand in the golf shoe industry according to customer research reports. ECCO is the only major shoe manufacturer that owns its tanneries and factories, hereby controlling the entire chain. For other competitors, shoe making process is outsourced to other factories and material purchase relying on suppliers which supplies may be unstable sometimes.
Segmentation, Targeting and Positioning
ECCO offers a wide range of shoes to serve customers of different needs, ranges from daily wear casual style to formal dressing for women, men and children. Sports range including