SWOT ANALYSIS - Analysing the ECCO Case

SWOT analysis (strengths, weaknesses, opportunities, and threats analysis) is a framework for identifying and analyzing the internal and external factors that can have an impact on making a strategic decision for a firm. 

As its name states, a SWOT analysis examines four elements:

·         Strengths - internal attributes and resources that support a successful outcome.

·         Weaknesses - internal attributes resources that work against a successful outcome.

·         Opportunities - external factors the project can capitalize on or use to its advantage.

·         Threats - external factors that could jeopardize the project.

SWOT Analysis is done in order to exploit the Opportunities and neutralize the Threats with the help of Strengths.

Once the SWOT factors are identified, decision makers are able to ascertain if the project or goal is worth pursuing and what is required to make it successful. Often expressed in a two-by-two matrix, the analysis aims to help an organization match its resources to the competitive environment in which it operates.

SWOT Analysis for ECCO A/S:

Strengths ·         In-house Manufacturing ·         Vertically Integrated System ·         Centralized operation ·         Strategic Collaborations ·         Customized Products ·         Technology ·         Global Reach ·         Cow-Shoe Strategy ·         R&D and focus on Quality	Weakness ·         No promotions ·         Risk averse ·         Family Business- not answerable to anyone ·         Labor union issues- various operations in different parts of the world
Opportunities ·         Vast potential for Manufacturing in China Market ·         High Demand for customized shoes e.g. Golf shoes ·         Demand for new designs ·         Rigid Production Facilities ·         Being a family business, they can experiment more ·         They can exploit green revolution in shoes	Threats ·         Low brand loyalty ·         Intellectual property loss ·         Strong competitors ·         Cheap substitutes for leather can be threatening to brand ·         Slowdown in European markets affects profitability ·         Global operations, more foreign employees, leads to culture issues

 Contributed By:

Aparna Trivedi

Section A

Strategic Management

Class of 2013-15