Yonex SWOT and PESTLE Analysis

Strength

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Weakness

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Opportunity

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Threat

1. Reduced sporting events due to Covid: Sporting activities have seen the axe following the social distancing curbs during Covid-19. The professional tournaments which were scheduled in the years 2020 and 2021 are already getting cancelled or postponed for the safety of players, local community, and the stadium staff. For instance, BNP Paribas Open in Indian Wells was postponed by around 7-8 months. Even the possibility of playing inside closed stadium was rejected due to the situation. Iconic events like the Tokyo Olympic Games have been postponed multiple times due to Covid-19 waves. These cancellations of sporting events have already led to reduced profits for Yonex, even after the expenses were curtailed. If the sports associations are not able to come up with the alternative ways for the sports events, Yonex will find it difficult to continue its branding.

2. Supply chains disruption globally: The demand for sporting goods recovered after COVID-19 curbs starting easing out and unlocking started to roll out in phases. But the companies found it hard to cater to the market’s pent-up demand, as the manufacturing operations and logistics had already been disrupted. Though Yonex could resume production in China, the company could not succeed in providing sporting goods to its global customers. However although the demand was consistent, it slumped again with rising cases. Yonex needs to develop an agile supply chain. The demand cycles will become shorter post Covid-19. The company should also focus on onshoring of its operations. New partnerships with suppliers are the most important step for Yonex to recover from the losses incurred during the pandemic.

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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. Consumers asking for circular economy products: As sports equipment are subject to frequent wear and tear athletes have started asking for products that have minimal impact on the environment. They are also ready to pay the extra price for these products. This awareness is being seen increasingly in the players after the Covid-19 crisis struck. Sporting companies must come up with recycling abilities so that they ensure the sustainability of their products. The increased use of D2C channels for driving sales, is harnessed to procure used products back from consumers. The trend promotes responsibility of sustainability for the manufacturers. Yonex is a leader in the segment, such as badminton racquets. It has the resources to create a sustainable value chain. This can also help the brand gain a positive brand image.

The remaining section under "Environment" is available only in the 'Complete Report' on purchase.