Asics SWOT & PESTLE Analysis

Strength

1. Driving innovation through ASICS Institute of Sport Science: The ASICS Institute of Sport Science (ISS) was formed in 1985 with an aim to create products which are based on biomechanics and human-centric science. The goal of the company was to help create outstanding, innovative and value-added products going by the instincts and expertise of the artisans. This laser focus on technology and value addition, continues to brew till date as is seen through the many path breaking innovations that it has developed. In 2020, a smart shoe was unveiled by the company which allows the user to monitor the way they run. The shoe also gives feedback and advice for improving real time performance. The Evoride shoes launched in 2020 are another such exsample of a breakthrough innovation. These smart shoes employ Asics Guidesole technology which minimizes lower leg movement, allowing runners to conserve energy and run more efficiently. These shoes are notable for being one of the most important innovations in Asics’ 70-year history and have been an industry game changer by bringing in a whole new category of running shoes.

2. Enduring relationships with all stakeholders: Asics prizes a strong relation with all its shareholders, customers, business partners and employees. The company is thus able to enjoy their complete trust as regards to its technologies, products and brands within the sports segment. The company founder Kihachiro Onitsuka started the sports segment with the belief that consumers within the segment deserved and desired products with superior performance. The company had initially started with the manufacture of basketball shoes, which was very difficult to manufacture at that time as it required the most challenging and sophisticated technology. However, the company beat the challenge and created their niche in the industry. Since that time, the company has gained many other experiences and technology know how in order to emerge as a global industry leader.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Continuous materiality program aligned with international standards: Product manufacturers have to pay the greatest attention to ensuring product safety. This need has intensified over the recent years with consumers now wanting full knowledge about materials used and product traceability. Other changing external factors like climate change, water and resource scarcity are also becoming a source of concern. The Japanese sportswear giant has therefore initiated a materiality program that is mainly concerned with two factors - the company’s materiality matrix that deals with sustainability issues and the value chain analysis which identifies problem areas within the value chain. The materiality program allows the company to fix problems which are most likely to affect stakeholders and the business.

2. Addressing climate change through science-based targets: Climate change is fast emerging as a cardinal global concern. Weather patterns are changing for the worst with extreme weather conditions prevalent in several places leading to food shortages and water scarcity. The living quality of people also gets affected with people feeling less motivated to engage in activities like sports. Asics is thus directly affected by changing climate conditions with disruptions occurring frequently within the production and logistics of its supply chain. Thus Asics is looking into resource conservation by innovating within the designs, materials and production processes used for its products. The method of building offices, distribution centers and retail locations have also been adapted to comply with this goal. Materials like polyester and polyurethane, which release CO2 when burnt at the end of its life cycle are instead substituted with other sustainable materials. Other science-based carbon reduction targets are also applied in accordance with the stipulations of the Paris Agreement to maintain global temperature increases below 2ºC. Several new targets were also introduced in a 2018 amendment, which were later approved by the Science Based Targets initiative (SBTi). Overall emissions of the company have been substantially reduced through these methods.

3. Promoting circular economy - collecting and recycling used products: Asics is following a circular economic model in which the focus remains on resource reuse and recycling rather than disposal. Asics has entered into a number of alliances in order to fulfill this end of reclaiming and reusing clothing and shoes of all brands. The ASICS REBORN WEAR PROJECT (ARWPJ) was launched in Japan in 2019 as a tribute to the Japan Team for Olympic and Paralympic Games, Tokyo 2020. The range was presented as the official Tokyo 2020 Japan Team sportswear. It was prepared from sportswear collected from people across the country associated with rich sporting memories which were breathed with new life. Asics collected the donated items and then extracted polyester through a circular production and development process. The extracts were then used to manufacture the resin, thread and fabric used in the creation of new sportswear and shoes. Asics hopes to continue its journey of reducing environmental impacts and assisting towards the success of Tokyo 2020.