Offshore vs. In House Production: ECCO Shoes

OFFSHORE VS. IN HOUSE PRODUCTION:
ECCO SHOES

Table of Contents
About ECCO....................................................................................................................................3
Benefits of Off Shore Manufacturing..............................................................................................4
Cost effectiveness........................................................................................................................4
In House vs. Overseas Manufacturing.........................................................................................4
Impact of Doubling the Compensation............................................................................................5
References........................................................................................................................................6

Introduction
The success lies in the fact that it has its own production technology with which the company
assures quality along with complete control over the value chain. The company has seen a
tremendous move from cow to shoe. This report has reflected the strategic steps which ECCO
took in its footwear business.
About ECCO
ECCO has been a success and the only footwear brand among the competitors who manufacture
and sell retail product. As the company developed it faced threats from the international
competitors, to curb the same, ECCO took a strategic step of focusing principally on the
production and tanning not from the host country, but offshore to the other countries which are
low cost in order to reduce the production cost. This off shore production has proved to be a
distinct advantage to the ECCO of its competitors. The major competitors include, Clarks,
Timberland and Geox. Few indirect competitors include, Adidas and Nike. However, ECCO
cannot be considered as a branded marketer since, it does not majorly focuses on international
branding tin comparison to brands such as Clarks.
Source: http://www.academia.edu/16134504/ECCO_Shoes_The_Machine_Gun