ASICS Chasing a 2020 Vision Case Study Analysis
To gather statistics for the 2015 target plan and predict the AGP 2020 plan, a comprehensive financial study was conducted. From 2011 through 2014, all ratios showed an upward trend, however in 2015, certain ratios showed a downward trend, showing that while yearly sales increased in 2015, other elements were not captured. Although sales grew by a large margin, the profit objective was not met. From 2011 to 2014, there was a steady increase, demonstrating the company’s potential for development. In 2015, the business’s gross profit margin almost remains same, but its net profit margin decreases, suggesting that the company had incurred a significant operational expenditure in 2015 (Exhibit2)
|The financial capitals of ASICS are highly valued because it will help in financing openings that arise. These will also help ASICS to cater external threats.
|The financial capitals of the company is found to be rare because strong financial resource are only hold by rare companies in the industry.
|ASICS’ financial capitals are difficult to replace. The firm has combined these resources over time as a result of constant productivity. To acquire large levels of financial capitals, newcomers and opponents would need to make equivalent earnings over a lengthy period of time.
|The financial capitals of ASICS are organized to capture and are deliberately allocated to engage in the correct locations which gives advantage of opportunities and fending against dangers. Therefore, these resources provide ASICS with a long-term reasonable edge.
|ASICS’s price structure isn’t a valuable asset because the methods of manufacturing cause greater costs than the challengers which impact the firm’s total profitability. Therefore, the company’s pricing structure is a significant drawback that must be addressed.
|ASICS’ distribution system is a scarce resource because rivals would have to spend a lot of money and effort to develop a distribution system that is higher to ASICS’. Only few companies have the ability to do this.
|ASICS’ distribution channel is also highly expensive to duplicate by competitors. ASICS has steadily developed this throughout the years. Competitors have to invest lot of money to replica a similar distribution method.
|The distribution network of ASICS is also organized because funds are deliberately allocated to invest in the correct positions, seizing occasions and fending off dangers. Therefore, ASICS is able to maintain a competitive edge thanks to these resources.
As per the perceptual mapping of price vs. quality, it is found that ASICS has highest price as compared to its competitors. Quality wise, ASICS has better quality than Adidas and New balance. But in order to compete with Puma and Nike, ASICS has to improve his quality further (Exhibit 2).
Target market of ASICS
The main target audience for ASICS is athletes. In 1998, ASICS sponsored marathon event in New York and other major cities and this turned out to be a good decision grassroots effort coincided with the boom in marathon participation. Afterwards, ASICS also engaged in apparel business. To strengthen its apparel business, ASICS opened its stores in London (2008), New York (2014) and Paris (2015).
With the help of innovative technologies and strategic initiatives the sales of ASICS has been increasing with time. But it has been facing problems to increase its net income value by 10% with the projected target of sales of about 750 billion in upcoming five years. Therefore, the selection of right strategy is a great challenge for the ASICS.
Identification of alternatives
The three alternatives are suggested to increase the sales and net income to gain competitive advantage after the analysis of growth opportunities held by ASICS. The identified alternatives are customer relation, new target market, expansion in product line and communication…………..
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