Asics: Chasing A 2020 Vision Case Study solution

Economic Factor

          In ASPICS, the company business depends on the condition of the economy where it sells its athletic footwear sports, equipment and, apparel. However, the economy condition-concerns affect the remote and macro-environmental of the business. The following are the significant external factors that could determine the ASPICS performance:

  • The Economic stability of developed countries.
  • The rapid growth of developing countries.
  • Slowdown of the Chinese economy.

The economic condition of the country affects the performance of the market. However, it is very important for the company to expand its operation, where the economic conditions are more stable.The US markets consider developed market are relatively stable, thereby providing ASPICS Company with the opportunity to grow continuously is quite slow, but stable growth in the developed countries. On the other hand, the-company has full opportunities to grow through increasing its operation in the developing markets rapidly. However, the growth in the developing countries is much higher than the growth in the developed countries. The rapid growth in the developing countries would lead to increase labor costs in the company supply chain and production facilities. In addition to this, the companies operated in developing economy might face a higher cost of production and decrease profits. On the other hand, the slowdown in the Chinese economy could face distress in the ASPICS performance. However, it is now significantly depend on the Chinese market for sports footwear, apparel and, equipment. So in such case, the-company need to properly evaluate their plan in accordance with the economic condition of the country.

SOCIAL FACTOR

          The social factor affects the company performance in the market. However, social issues impact the attractiveness of ASPICS athletic footwear, apparel and, equipment. The company needs to deals with the effects of social conditions on the firms remote and macro-environment. In ASPICS case, the following social external factors are most significant:

  • Increasing the individual wealth in developing countries.
  • Increasing the impact on product safety.
  • Improving positive attitude about leisure sports.

The company needs to create a culture that would be appealing to the customers. However, ASPICS has opportunities to tap consumers through increasing the individual wealth in developing markets. It would lead to increase the opportunity to tap the audience in the market. On the other hand, the company underdeveloped product according to athletic needs and use high level of marketing campaigns, that highlight the safety of its sports footwear, apparel and equipment. ASPICS Company would need to adopt new product development strategies that allow addressing needs for products for leisure activities. In the same manner, ASPICS Company needs to evaluate considerable opportunities for product development and business growth in the market.

TECHNOLOGICAL FACTOR

Technological aspect gives an edge to the company alongside its competitor. However, ASPICS business changes according to the technology available for business processes and athletic footwear, equipment and apparel. The company needs to identify the technological conditions that lead to significant change in the remote or macro-environment. In ASPICS case, the following technological external factors affect ASPICS performance:

  • Increase the proportion of R&D investment.
  • Rapid technological obsolescence
  • Widespread use of mobile app technology

The company needs to identify the need of the consumer in the market and develop the product according to athletic need. However, the proportion on increasing the R&D investment among the firms would trouble the ASPICS performance, as these competing companies aim to develop more technologically advanced products including sports footwear, apparel and, equipment. On the other hand, rapid obsolete technological product of ASPICS Company would face pressure on the competitor side by increasing the proportion of its product development efforts. In the same manner, the external factor provides the opportunities for ASPICS to integrate advanced technologies in its product. In particular, the company has opportunities to integrate mobile technologies into its product in order to attract consumers who frequently use mobile technologies, such as online tools and mobile apps. By doing so, the company can be able to capture market share over its competitor…………..

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