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Asics SWOT & PESTLE Analysis

ID : 52646353| Mar 2021| 18 pages

COMPANY PROFILE -Asics

Business Sector :Sporting Goods

Operating Geography :Japan, Asia, Global

About Asics :

Asics was established by Kihachiro Onitsuka as ONITSUKA Shokai in Kobe, Japan in 1949. Later, the company name is changed to ASICS which is an acronym of the Latin phrase “Anima Sana In Corpore Sano,” and translates as ‘a sound mind in a sound body’. Its headquarters are located in Coraopolis, Pennsylvania. ASICS is one of the world’s top sports performance and lifestyle brands. In 2017, the new branding message "I MOVE ME," which positions ASICS as a brand for today's athletes as well as the next generation, was announced. It operates 55 companies in 33 countries. The company has around 9,000 employees as of 2019.
ASICS manufactures a wide portfolio of products ranging from footwear that includes sneakers and sandals, to clothing comprising of t-shirts, jackets, hoodies, pants, shorts, compression garments, socks and even other accessories like bags, caps, backpacks etc. ASICS' key objective focuses on "Producing innovative sports products solutions and technologies to help athletes and active consumers achieve their goals."
Innovation, quality and authenticity are the core values of ASICS. Undoubtedly the company was announced the winner of the JEC World Composites Innovation Awards in the Sports and Health care category on 13th May 2020. Held at a virtual ceremony in Paris, the prestigious award was granted by an international jury for the advanced molding technology behind ASICS new spikeless track shoe, METASPRINT™, designed to improve speed over short distance.
ASICS' mission as stated on its official website reads "ASICS has been developing sports footwear and apparel for more than 50 years. In this time, innovation has been the key to our introduction of design philosophies that have revolutionised the world of sports. At our research and development centre in Kobe, Japan, we work in close collaboration with male and female athletes. Through our scientific approach we have strived to create highly innovative sports product solutions that our customers rely upon. Technologies, such as core GEL cushioning system and Flytefoam are renown for enabling the most comfortable and performance-enhancing footwear and apparel on the market, for athletes and active consumers alike." Asics vision statement is to “Create Quality Lifestyle through Intelligent Sport Technology.”
ASICS' USP or Unique Selling Proposition lies in being one of the world's biggest shoe company as of 2020, renowned for its leadership in innovation, and one of the world’s top sports performance and lifestyle brands offering shoes and related accessories for sports enthusiasts & professional athletes.

Asics Revenue :


¥ 378,051 million - FY ending 31st December 2019 (y-o-y growth of (negative) -2.3%)
¥ 386,662 million - FY ending 31st December 2018

Competitive Analysis of Asics

SWOT
PESTLE

The SWOT analysis for Asics is presented below in a matrix followed by detailed analysis

Strengths
Weaknesses
1. Driving innovation through ASICS Institute of Sport Science
2. Enduring relationships with all stakeholders
3. Strong global presence across developed markets
1. Convert the apparel business into a profitably growing business
Opportunities
Threats
1. Focus on the Performance Running market in the United States
2. Accelerate growth in the Chinese and South Asian markets
3. Develop the digital business as a new growth driver
4. Expand Onitsuka Tiger as a true luxury brand
1. Risk associated with large-scale natural disasters in Japan
2. Threat from brand damage and revenue loss through counterfeit products
3. Stiff competition from industry peers
4. Impact of global trade war
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Asics

 

Strength

1. Driving innovation through ASICS Institute of Sport Science: The ASICS Institute of Sport Science (ISS) was established in 1985, to develop products based on biomechanics and human-centric science, supplementing the instincts and experience of craftsmen. Its goal was to create unique, innovative products with high added value. That strong emphasis on technology lives on in the Company to this day. The institute has developed many path-breaking innovations, some of which are also a first in the industry. Asics in 2020 has developed a new smart shoe which can monitor how you run and give feedback on how to improve one’s performance in real time. Asics also revealed its Evoride shoes in 2020 which are built around Asics' revolutionary Guidesole technology, engineered to minimize movement in the lower leg, helping runners save energy and run more efficiently. This technology is one of the most important innovations in Asics' 70-year history and has created a completely new category of running shoes for the industry.

2. Enduring relationships with all stakeholders: Asics strength as a company lies in the enduring relationships it has built with all stakeholders —shareholders, customers, business partners and employees — and the trust they have in its technology, products and brands, cultivated over many years in business fields centered on sports. Founder Kihachiro Onitsuka engaged in product development with the belief that consumers would appreciate products with superior performance. He initially focused on basketball shoes — a product with the most sophisticated and challenging technologies at the time. He rose to the challenge, helping ASICS accumulate a wealth of technology and experience along the way.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Brands :

  • ONITSUKA
  • The ASICS
  • ASICS TIGER

Key Business Segments / Diversification :

Asics
Apparel and Equipment Sports Style Performance Running
Core Performance Sports Onitsuka Tiger
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References used in Asics SWOT & PESTLE Analysis Report

1. ASICS annual report 2019 - https://assets.asics.com/page_types/4381/files/ASICS%20Annual%20Report%202019_original_original.pdf?1590396083

2. ASICS annual report 2018 - https://assets.asics.com/page_types/4007/files/ASICS%20Annual%20Report%202018_original.pdf?1558051753&_ga=2.79139804.953674181.1579080365-822797000.1579080364

3. ASICS investor presentation 2019 - https://assets.asics.com/page_types/4257/files/Presentation%20for%20the%20%20fiscal%20year%20ended%20December%2031,2019_update%20-ver2_original.pdf?1582071206&_ga=2.134806257.125385819.1604470009-763391119.1604470009

4. ASICS financial presentation for the fiscal second quarter ended 30th june 2019 - https://assets.asics.com/page_types/4079/files/Presentation%20for%20the%20Fisical%20Second%20Quarter%20Ended%20June%2030,%202019_original.pdf?1564725760&_ga=2.252296897.953674181.1579080365-822797000.1579080364

5. Asics consolidated financial summary for the fiscal second quarter that ended on 30th June 2020 - https://assets.asics.com/page_types/4472/files/Consolidated%20Financial%20Summary%20For%20the%20Fiscal%20Second%20Quarter%20Ended%2030%20June,%202020_original.pdf?1597298527&_ga=2.97623455.125385819.1604470009-763391119.1604470009

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In-text: (SWOT & PESTLE.com, 2021)

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