ASICS Chasing a 2020 Vision Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

ASICS Chasing a 2020 Vision Case Solution

Introduction

Maker of sports shoe led by Kihachiro Onitsuka established ASICS in 1949 which was based on manufacturing of high performance shoes for basketball and marathon with the purchase of tiger design trademark in 1957. Establishment of ASCIS was initially the maker of sports-shoe led by Kihachiro Onitsuka in 1949 which was primarily based on the manufacturing of high-performance shoes for marathon and basketball with the acquisition of a tiger design trademark in 1957. Around 47 competitors won gold while wearing Onitsuka shoes in the 1964 Tokyo Olympics, contributing in the brand's fame outside of Japan. The promotion of Onitsuka had begun in the United States, with a modification in the tiger mark to a sleek four-striped pattern. Due to a lack of clothing options in the market, Onitsuka combined with two other sportswear companies and became known as Onitsuka Tiger which came to be known as ASICS.

Situational analysis

The first jogging shoes was released based on a novel technical process based on shock-absorbing material for athlete foot protection. In 2015 ASICS managed to top the net sales. In February 2016, Oyama announced a new five year strategic plan which would remain effective up to the critical year when Tokyo Olympic games 2020 would be held. As a result, CEO believes that the implementation of tactics based on the current idea is required to connect with the global customer base for constant alignment of this ethos.Due to this strategy, ASICS wants to build stores in New York financial sector along with high end flagship on Fifth Avenue. Moreover, despite ASICS’s intention to maintain high performance, the company’s expansion had been questioned by management owing to variety of factors.

SWOT Analysis

Strength

The constant efforts had been made by ASICS with considerable measures to stand out in the market in investing too much in development and research to find out more competitive product. It has a diverse range of goods with various logos as identifying marks in various regions, such as sleek 4 stripes in Japan and the United States and the tiger mark as an advertising and distinguishing strategy endeavor in Europe.

Weakness

Despite possessing an e-commerce platform, ASICS misses the capacity to effectively control social networks, resulting in inadequate revenue growth. Buyers were perplexed when ASICS items were sold under two distinct signature marks. The major cause of consumer confusion was the division of brands, since one single brand had three separate brand products, whereas Nike had a single product signature and was 7 times more profitable than ASICS, resulting in uneven profitability.

Opportunities

ASICS has the ability to satisfy its customer base through sponsoring a variety of events, along with develop its company in overseas markets by targeting different consumer categories with a growing interest in sporting activities. ASICS would be likely to access a huge number of clients not just in Japan, Europe, the United States, and the United Kingdom, but also in many other nations across the world, if they improved their e-commerce campaign.

Threats

The sales network in the United Kingdom is not very well, since they sell items through third-party participation, which raises the product cost for ASICS making it more expensive than comparable products.

Competitive Analysis

Competition in the market has been increased by acquisition of health application due to the focus on single product. The two brands which are playing a key role in the market with almost 50% of market share are Nike and adidas. ASICS wants to compete with Nike and Adidas in terms of some product but also face some competition threat from Puma, New Balance and Under Armor to save its third position in the market. Financial analysis shows an increasing trend of Nike and Adidas’ annual sales. All ratios are in a decreasing trend from 2014 to 2015 of all rivals except Nike. Nike’s annual sale was decreased with a huge margin from 2014 to 2015 showing Nike’s incapability to meet its customer’s needs (Exhibit 1).................

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ASICS Chasing a 2020 Vision Harvard Case Solution & Analysis