CASE ANALYSIS: ECCO A S GLOBAL VALUE CHAIN MANAGEMENT

Case Analysis: ECCO A S Global Value Chain Management



Case Analysis: ECCO A S Global Value Chain Management

Core Competencies Using the Framework of VRIO

ECCO and Crocs, operate on two different supply chain management systems that are unique to the footwear industry. The growth and profitability of the firms can be attributed to the efficiency and effectiveness of their supply chain management systems and the core competencies that have evolved from these systems. The following analysis defines Croc's and ECCO's core competencies using the framework of VRIO.

Crocs

Value:

Crocs shoes are funky, trendy, and come in many fun colors, though the long-term value of a shoe like Crocs lies in the innovative design that provides comfort and functionality. Crocs is appealing to retailers because of their highly flexible supply chain, which offers quick response time to fulfill orders and the ability to adjust to changes throughout the selling season. Croc's unheard of replenishment system enables them to neutralize threats and respond to opportunities in the global market on the basis of time and flexibility. In recent weeks, there have been questions as to the relative value of the Crocs brand as their trendy shoes have lost the fevered demand they once had.  

The notion of Supply Chain Management

It is general accepted that in nowadays the topic of Supply Chain Management (SCM) has become subject of great contradictions and discussions, for an extensive number of academics, consultants and practitioners. This simultaneous, multidimensional exploration of the same issue has created a lot of confusions and misunderstandings over its focus, its components and its defined terminology. So according to Croom et. al (2000); Tan et. al (1998); Andersen 2000; Ghiassi and Spera (2003), the terms: integrated purchasing strategy, network-sourcing management, value chain management, value stream management, supply pipeline management, supply base management, supply chain synchronisation and other similar terms, are all employed to describe and define one single process; the management of the supply chain.

But what does it mean when individuals talk about supply chain and why should supply chain be managed? Talluri (2000, p.221) by giving more emphasis to the participants and less on the processes and flows performed in a supply chain defines supply chain as "a network of suppliers, manufacturers, distributors and customers". WebFinance (2003) suggests a broader description of the term supply chain by defining it as "a network of retailers, distributors, transporters, storage facilities and suppliers that participate in the sale, delivery and production of a particular product." Similarly to WebFinance the subject of a supply chain is defined as the sum of all the activities, information, stages and actors involved, from the production stage of a product/service until its final consumption stage by the end customer/user.

Supply chains exist in most business organisations today, whether they are dealing with services or with physicals products. Many authors and researchers such as Vorst et al (1998), Ballou (1978; 1985) and Koch (2002), have tried to identify and classify the key activities and processes that ...