They produce 80% of its production, the remaining 20% are outsourced -COCO located their production facilities in countries with cheap labor costs -Real study on the company’s inside-out, in order to adapt Coco’s culture -Unique production process, divided in five strategic phase -A delay in lead time and more stock was held in different distribution centers : this caused an increase in working capital -Differentiation between producing countries (Ex : Portugal specialized in laser genealogy, Thailand for Golf shoes) -Establishment of sales subsidiaries and production units, to save labor costs and spread risk (in some countries) – Distribution system well managed (Two distribution centers, then distribution by ship, and by plane, which isn’t really developed yet) -complicated interlinked logistic organization Marketing -Differentiation strategy : stay a ‘quality brand’ -Clear vision to be the most wanted brand, because of its innovation and comfort – Constant research of new paths -COCO isn’t really aware of the fashion aspect. Brand name is a secondary consideration) The company needs to become more market-oriented Service -Investments in customer service -Sellers become more competent (Even more shoes sold per employee : 1,104 in 1999, 1,247 in 2004) Conclusion According to the analysis provided above we were able to identify the main aspects of the Coco in terms of their operation. Coco is having an original and well managed value chain (“Cow to shoe”).
They have nailed their quality of production through implementation of enhanced technology into this process. Nevertheless, the lack of marketing activities can be noticed. They are not building relation with their customers and in long term this can cause the loss in the market share as their competitors are being active in this. Moreover, their product is a subject to change in the consumers perceptions due to the fact that there are large amounts of the substitutes and competitors. Investing a solid amount from their budget in marketing will have a positive effect not only on the consumers, but on the firms ROI. Furthermore, this will help to gain market share.