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Essay on Dansko, Inc.

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Introduction
Beginning in 1990, the “Danish Clog” was brought to life in the United States. It began as a small company selling the shoes at horse shows but quickly grew larger than was imagined. Expansion of the product went from a single closed back clog to over 3000 products being sold in over 3,500 retail locations. During the past fifteen years there have been many offers to sell interest in the company. You are now becoming concerned that the company that was such as success all of these years may not be structured appropriately to promote further growth. You are now faced with a decision on how to can move forward. Should you consider a merger that will allow growth and a more conventional way of operations?
Financial Analysis …show more content…

The top competitors in this specific category are Birkenstock, Ecco, and Mephisto. Birkenstock, also a privately owned company, has been distributing shoes about thirty five years longer than Dansko. They produce a well known brand of clogs which are priced just about the same as Dansko. Ecco is a large international distributor of shoes. They are the largest competitor with annual revenues of approximately $4 billion. The number of employees is more than 10 times of Dansko at around 12,000. Their largest distribution of sales is in Central Europe but they are still well known in the United States. Lastly, Mephisto is the smallest of all the competition. The company’s annual sales are less than $500,000 and they have around 5 employees. They do not seem to pose much risk to Dansko.
Core Competencies
Dansko has fairly strong core competencies. The shoes are uniquely valued by their customers and therefore bring good returns. The shoes are made for comfort and they live to their standards. This strongly influences people to choose the product. Dansko shoes are not easily imitated because they were only manufactured by one company and they only manufactured the shoes for Dansko. The shoe originated in another country and the same manufacturer is still being used. This allows Dansko to provide products that are better than the completion and allows them to

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