Marketing Strategy - Case Analysis (Ecco)

2681 Words Jan 23rd, 2012 11 Pages
Marketing Strategy Case Questions (Galka)

ECCO A/S

Global Value Chain Management

Marketing Strategy Term 4 2011

Team #6

03 August 2011

1. Perform a Porter’s Five Force Analysis

Force 1: Barriers to Entry

| |Questions |Answer |Reason for Barriers to entry |
|1. |Do Larger firms have a cost/performance |Yes (Positive) |Larger firms like ECCO have resources to cut down their |
| |advantage? | |production cost and can invest more on technology and R&D to |
| | |
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| |strong customer service, latest technology and high quality |
| | | |shoes. Thus on these factors new entrants face very strong |
| | | |competition and retaliation. |
| |Inference |Positive |High barrier to entry |

(Iqbal, 2009)

Force 2: Intensity of Rivalry

| |Question |Answer |Reason for intense rivalry |
| |Rapid Segment Growth |Yes (Positive) |Tremendous demand for good quality formal, casual semi-sport and |
| | | |sport shoes making market more attractive and intense for |
| | | |competition. |
| |Many incumbent competitors |Yes (Negative) |Intense competition for the same customers and resources. |
| | | |Maximizing market share becomes

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