ASICS: Chasing a 2020 Vision Case Solution & Answer

ASICS: Chasing a 2020 Vision Case Study Solution


ASICSis a Japanese based footwear and sports manufacturing company which was founded by Kihachiro Onitsuka in 1949. During the Tokyo Olympics in 1964, about 47 athletes won medals who wore Onitsuka shoes resulting in brand popularity outside Japan. With a change in the tiger mark by a sleek four-striped design, the marketing of Onitsuka had begun in the United States. During the same period, due to decreased apparel offerings in the market, Onitsuka merged with two different sportswear firms and came to be known as ASCIS.

The release of the first jogging shoes was based on a new technological approach based on shock-absorbing material for the protection of the feet of athletes. Thereby, for consistent alignment of this ethos, it is believed by CEO that the application of strategies based on the modern concept is necessary to align with the consumer base throughout the world. With this approach, ASICS has planned to open stores in the district of New York City and an expensive flagship at the fifth avenue. Similarly, despite the planning of ASICS for consistent maintenance of high-performance of running footwear, its expansion had been pondered due to the occurrence of a few reasons by the management.

Problem statement

In 2016, ASICS planned to cope up with the targeting problem faced by the 2015’s plan. 2015 plan proposed a challenging target of 400 billion yen with 10% operating income margin. After analyzing the data gathered from 2015 plan, this plan resulted in the success for sales, showing 428 billion yen of sales but failed to achieve the target of 10% operating income. Motio Oyama concerning the issue, set the team to plan the “ASICS 2020 plan” for setting the targets. After analyzing, they proposed a 750 billion sales for next year, with the 10% of operating margin. For achieving this target,there is a need for an effective strategy that should be formulated consisting on six strategies including DTC mind set, expansion of consumer base, communicate a constant brand, differential innovation, operational excellence and strong team.


Internal analysis

One of the greatest strengths of ASICS is that it is the strong global retail chain along with the strong brand name. ASICS has expanded its business globally. ASICS shoes has become known among Marathon runners as providing superior cushioning for ease, comfort and designed to improve the performance.The company designs technically advance and highly functional shoes to serve dedicated athletics. ASICS’s greatest weakness is that the company is competing with the third line companies.ASICS is following the strategy, which provides only linkage with the retailors and hence, resulted in no direct connection with its potential customers……………………………..


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