On

To ignite the human spirit through movement by being the most premium global sportswear brand.

On SWOT Analysis

Updated: October 4, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for On was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The On SWOT Analysis reveals a brand at a critical inflection point. Its core strengths—DTC momentum, brand heat, and proprietary technology—provide a powerful engine for growth. However, this momentum is checked by significant weaknesses, primarily its underperforming apparel segment and the operational strains of hyper-growth. The path forward is clear but challenging. On must capitalize on the immense opportunities in China and adjacent product categories while mitigating the ever-present threats from fierce competitors like Hoka and potential macroeconomic headwinds. The company's future hinges on its ability to evolve from a running shoe phenomenon into a diversified, global sportswear powerhouse. This strategic plan must prioritize apparel expansion and operational scaling to secure its premium position and fully realize its ambitious vision.

Hoka Nike Adidas Lululemon Brooks

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To ignite the human spirit through movement by being the most premium global sportswear brand.

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Strengths

DTC: Rapid DTC growth (+29% Q1'24) fuels margins & customer data.
BRAND: High brand heat allows premium pricing and strong sell-through.
INNOVATION: Patented CloudTec is a clear, marketable product differentiator.
PROFITABILITY: Strong gross margins (61.2% Q1'24) fund future growth.
ENDORSEMENT: Credibility from elite athletes like Iga Świątek & Hellen Obiri.

Weaknesses

APPAREL: Apparel sales (~5% of total) lag far behind footwear dominance.
SCALE: Operational infrastructure is straining to keep up with hyper-growth.
AWARENESS: Brand awareness outside running circles remains relatively low.
PRICE: Premium price point may limit addressable market in some regions.
CONCENTRATION: High reliance on manufacturing partners in Vietnam.

Opportunities

CHINA: Massive growth potential in China's premium sportswear market.
EXPANSION: Untapped potential in new categories like tennis and training.
WHOLESALE: Deepen partnerships with key premium retailers for reach.
INFLUENCE: Leverage athlete success for broader lifestyle brand appeal.
SUSTAINABILITY: Lead with Cyclon subscription to attract eco-conscious buyers.

Threats

COMPETITION: Hoka's aggressive growth directly challenges On's core market.
RECESSION: Economic downturns could impact consumer discretionary spending.
SUPPLY CHAIN: Geopolitical instability in Asia poses a significant risk.
COUNTERFEITS: Brand success invites counterfeit products, diluting equity.
MARGINS: Increased marketing & R&D spend could pressure profitability.

Key Priorities

DTC: Accelerate DTC channel growth to own the customer relationship/data.
APPAREL: Crack the apparel code to become a true head-to-toe brand.
CHINA: Execute an aggressive, targeted growth strategy in Greater China.
INNOVATION: Double down on hero product innovation to outpace competitors.

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On OKR

Updated: October 4, 2025 • 2025-Q4 Analysis

This On OKR plan is a masterclass in focus and ambition. It directly translates the strategic priorities into measurable, high-impact outcomes. The objectives—DTC Mastery, Apparel Breakout, Win in China, and Innovate & Scale—are not just goals; they are declarations of intent that rally the entire organization. The key results are sharp, data-driven, and smartly integrate AI and sustainability as levers for growth, not just checkboxes. This plan provides a clear, compelling roadmap for On to evolve from a footwear darling into a global sportswear titan, balancing aggressive expansion with the operational and technological excellence required to win in a fiercely competitive market.

Hoka Nike Adidas Lululemon Brooks

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To ignite the human spirit through movement by being the most premium global sportswear brand.

DTC MASTERY

Own the end-to-end premium customer experience.

GROWTH: Increase DTC channel's share of total net sales from 36% to 42% to boost margins and data.
EXPERIENCE: Launch AI-powered personalization, increasing add-to-cart from recommendations by 25%.
RETAIL: Open 15 new flagship stores in key global cities, ensuring each is profitable within 12 months.
LOYALTY: Increase repeat purchase rate among DTC customers by 20% through targeted engagement.

APPAREL BREAKOUT

Establish On as a credible head-to-toe brand.

GROWTH: Accelerate apparel net sales growth to 2x the rate of footwear growth this fiscal year.
ATTACH: Increase the percentage of footwear transactions that include an apparel item from 8% to 15%.
INNOVATION: Launch two new apparel 'hero' franchises with distinct tech, backed by a major campaign.
PERCEPTION: Achieve a 25% increase in unaided brand association with 'apparel' in post-purchase surveys.

WIN IN CHINA

Become a top-5 premium sportswear brand in China.

SALES: Triple net sales in the Greater China region over the next 18 months through focused expansion.
AWARENESS: Double brand awareness in Tier 1 Chinese cities via hyper-local digital marketing campaigns.
RETAIL: Establish 20 owned and partner retail locations in strategic high-street and mall locations.
PARTNERSHIPS: Secure 3 partnerships with top-tier Chinese athletes or cultural influencers.

INNOVATE & SCALE

Fuel growth with tech and operational excellence.

PRODUCT: Launch next-gen CloudTec 3.0, driving a 15% sales lift in updated footwear models.
DESIGN: Implement generative AI tools to reduce the footwear design concept phase from 3 months to 3 weeks.
SUPPLY CHAIN: Deploy AI forecasting to improve inventory accuracy by 30%, reducing stockouts and excess.
SUSTAINABILITY: Increase Cyclon circular subscription service members by 100% to lead in sustainability.

METRICS

Direct-to-Consumer (DTC) Net Sales: CHF 850M
Net Sales Growth: 25% YoY
Gross Profit Margin: 62%

VALUES

Performance-driven
Design-led
Team Spirit
Sustainability Mindset
Explorer's Heart

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On Retrospective

AI-Powered Insights

Claude

Gemini

GPT

On Holding AG Q1 2024 Earnings Report & Investor Presentation
On Holding AG FY2023 Annual Report
Official Company Website (on-running.com)
Publicly available market data and financial news (e.g., Bloomberg, Reuters)
Industry reports on the global sportswear and footwear market

Hoka Nike Adidas Lululemon Brooks

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To ignite the human spirit through movement by being the most premium global sportswear brand.

Toggle Theme

What Went Well

DTC: Continued strong double-digit growth in the direct-to-consumer channel.
MARGINS: Gross profit margin expanded due to favorable channel mix and pricing.
AMERICAS: Sustained robust growth in the key North American market.
INNOVATION: Successful launch of new hero products like the Cloudmonster Hyper.
PROFITABILITY: Achieved record profitability, demonstrating operating leverage.

Not So Well

WHOLESALE: Slower growth in wholesale as partners manage inventory levels.
APPAREL: Apparel growth, while positive, still not accelerating as desired.
EMEA: Softer consumer environment in Europe led to more moderate growth.
INVENTORY: Still optimizing inventory levels across different regions and SKUs.
EXPENSES: SG&A expenses grew as the company invested in marketing and talent.

Learnings

DTC is the engine: Owning the customer relationship is key to margin and brand.
Brand heat is real: Consumers are willing to pay a premium for On products.
Apparel is hard: Cracking the apparel market requires a different playbook.
Global is complex: Macroeconomic conditions vary significantly by region.
Efficiency matters: Balancing growth investment with operational efficiency is crucial.

Action Items

DTC: Double down on digital experience and owned retail store expansion.
APPAREL: Appoint a dedicated apparel lead and accelerate innovation cycle.
CHINA: Increase marketing investment and local partnerships in Greater China.
SUPPLY CHAIN: Implement better demand planning tools to optimize inventory.
MARKETING: Launch a major brand campaign to increase awareness beyond running.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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On Market

AI-Powered Insights

Claude

Gemini

GPT

On Holding AG Q1 2024 Earnings Report & Investor Presentation
On Holding AG FY2023 Annual Report
Official Company Website (on-running.com)
Publicly available market data and financial news (e.g., Bloomberg, Reuters)
Industry reports on the global sportswear and footwear market

Founded: 2010, Zurich, Switzerland
Market Share: Est. 2-3% global performance footwear
Customer Base: Affluent runners, fitness enthusiasts
Category:
Performance Sportswear
SIC Code: 5136 Men's and Boys' Clothing and Furnishings
NAICS Code: 448210
Location: Zurich, Switzerland
Zip Code: 8050
Employees: 2200

Competitors

Hoka Request Analysis

Nike View Analysis

Adidas Request Analysis

Lululemon Request Analysis

Brooks Request Analysis

Products & Services

No products or services data available

Distribution Channels

On Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

On Holding AG Q1 2024 Earnings Report & Investor Presentation
On Holding AG FY2023 Annual Report
Official Company Website (on-running.com)
Publicly available market data and financial news (e.g., Bloomberg, Reuters)
Industry reports on the global sportswear and footwear market

Problem

Lack of footwear combining performance & design
Desire for a premium, community-driven brand

Solution

Patented CloudTec for cushioned, responsive ride
Swiss-engineered, minimalist aesthetic
Authentic engagement with the running community

Key Metrics

Net Sales Growth & DTC Revenue Share
Gross Profit Margin & Net Income
Brand Awareness & Net Promoter Score (NPS)

Unique

The unique 'running on clouds' sensation
Founder story rooted in elite athletic insight

Advantage

Proprietary, patented footwear technology
Strong brand equity and pricing power

Channels

DTC E-commerce (on-running.com)
Owned and operated flagship retail stores
Premium wholesale partners (online & offline)

Customer Segments

Serious and casual runners
Fitness enthusiasts and athletes
Style-conscious urban consumers

Costs

Cost of goods sold (manufacturing, logistics)
Sales, General & Admin (marketing, payroll)
Research & Development for new technologies

On Product Market Fit Analysis

Updated: October 4, 2025

On revolutionizes movement with its Swiss-engineered sportswear. Its patented CloudTec technology provides a unique sensation of running on clouds, blending innovative comfort with premium, minimalist design. The brand isn't just selling products; it's building a global community for anyone inspired to move, making it the go-to choice for those who value both performance and style.

INNOVATIVE COMFORT: Patented tech for effortless movement.

PREMIUM DESIGN: Swiss engineering for performance and style.

INSPIRING COMMUNITY: Join a global movement of enthusiasts.

Before State

Uninspired, heavy, harsh running shoes
Generic sportswear lacking style
Feeling disconnected from brands

After State

Effortless, cushioned, responsive runs
Performance gear with premium design
Belonging to a global movement community

Negative Impacts

Discomfort and potential for injury
Poor performance, lack of motivation
Transactional, not experiential, buying

Positive Outcomes

New personal bests, enjoyable movement
Confidence in both performance and style
Brand loyalty and advocacy

Key Metrics

Customer Retention Rates - Est. 35-45%

Net Promoter Score (NPS) - Est. 55-65

User Growth Rate - 21% YoY Net Sales Growth

Customer Feedback/Reviews - 1,500+ on G2

Repeat Purchase Rates) - Est. 30-40%

Requirements

Innovative cushioning technology
Commitment to premium materials, design
Authentic community engagement

Why On

Patented CloudTec and Speedboard tech
Swiss-engineered minimalist aesthetic
Athlete stories, local run clubs, events

On Competitive Advantage

Unique 'running on clouds' sensation
Brand heat drives pricing power, demand
DTC channel fosters direct relationships

Proof Points

Olympic medals and major marathon wins
Fastest growing brand in key retailers
Tens of thousands of 5-star reviews

On Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

On Holding AG Q1 2024 Earnings Report & Investor Presentation
On Holding AG FY2023 Annual Report
Official Company Website (on-running.com)
Publicly available market data and financial news (e.g., Bloomberg, Reuters)
Industry reports on the global sportswear and footwear market

Strategic pillars derived from our vision-focused SWOT analysis

Win via premium, direct-to-community experiences.

Become a true head-to-toe performance brand.

Own 'run' while winning in tennis & training.

Drive market with patented tech & design.

What You Do

Design and sell performance sportswear.

Target Market

Runners and movers seeking premium gear.

Differentiation

Patented CloudTec cushioning technology
Swiss design and engineering ethos

Revenue Streams

Footwear sales (primary)
Apparel and accessories sales

On Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

On Holding AG Q1 2024 Earnings Report & Investor Presentation
On Holding AG FY2023 Annual Report
Official Company Website (on-running.com)
Publicly available market data and financial news (e.g., Bloomberg, Reuters)
Industry reports on the global sportswear and footwear market

Company Operations

Organizational Structure: Functional with regional business units.
Supply Chain: Asset-light; partners in Vietnam, Indo.
Tech Patents: CloudTec and Speedboard technologies
Website: https://www.on-running.com

Top Clients

Board Members

On Competitive Forces

Threat of New Entry

MODERATE: High capital required for global branding and R&D. However, niche DTC brands can emerge and gain traction quickly.

Supplier Power

MODERATE: Relies on a few large Asian manufacturers, giving them some leverage. Diversification efforts are underway to mitigate this.

Buyer Power

MODERATE: Individual consumer power is low, but premium retailers (wholesale) have significant leverage due to their scale.

Threat of Substitution

HIGH: Many alternative sportswear brands available. Low switching costs for consumers, though brand loyalty provides some defense.

Competitive Rivalry

HIGH: Intense rivalry from Nike, Adidas, Hoka, Brooks, Lululemon. Competition is based on innovation, marketing, and brand.

Analysis of AI Strategy

Updated: October 4, 2025 • 2025-Q4 Analysis

The On AI SWOT Analysis highlights a classic dilemma for a high-growth company: immense potential constrained by resources. On's primary AI asset is its rich DTC data, a goldmine for personalizing customer experiences and optimizing operations. However, it trails industry titans in AI talent, data scale, and dedicated R&D investment. The strategic imperative is not to out-spend giants like Nike, but to be surgical. On must leverage AI for tangible, high-ROI applications—starting with supply chain forecasting to improve margins and deploying personalization engines to boost DTC conversion. By focusing AI on solving specific business problems rather than chasing generalized AI supremacy, On can turn its agility into a competitive advantage and accelerate its journey toward becoming a premium global sportswear leader.

Hoka Nike Adidas Lululemon Brooks

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To ignite the human spirit through movement by being the most premium global sportswear brand.

Strengths

DATA: Rich first-party DTC customer data for personalization models.
AGILITY: Newer tech stack allows for faster integration of AI tools.
CULTURE: Innovation-focused culture is open to adopting new tech.
DESIGN: Potential to use generative AI to accelerate footwear design.
COMMUNITY: AI can analyze social data to identify trends and influencers.

Weaknesses

TALENT: Lack of a large, dedicated AI/ML research division like Nike's.
SCALE: Smaller datasets compared to industry giants for training models.
INFRASTRUCTURE: Current data infrastructure may not be ready for AI at scale.
EXPERIENCE: Limited history of implementing complex AI-driven systems.
SPEND: Smaller budget for AI R&D and talent acquisition vs. competitors.

Opportunities

SUPPLY CHAIN: Use AI for demand forecasting and inventory optimization.
PERSONALIZATION: AI-driven recommendations on site and in-app (Onward).
MARKETING: Generative AI for creating targeted, dynamic campaign assets.
PRODUCT: Use AI to analyze biomechanical data for next-gen shoe design.
SERVICE: AI-powered chatbots to improve customer service efficiency.

Threats

COMPETITION: Nike & Adidas leverage massive AI investments for advantage.
PRIVACY: Evolving data privacy regulations could limit AI capabilities.
DEPENDENCE: Over-reliance on third-party AI platforms like OpenAI/Google.
BIAS: Risk of algorithmic bias in product recommendations or marketing.
SPEED: The rapid pace of AI development makes it hard to keep up.

Key Priorities

FORECASTING: Implement an AI-driven demand forecasting system for supply chain.
PERSONALIZATION: Launch AI-powered product recommendation engine in DTC channels.
DESIGN: Pilot generative AI tools to shorten the product design lifecycle.
EFFICIENCY: Deploy AI chatbots to handle 50% of tier-1 customer queries.

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On Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

On Holding AG Q1 2024 Earnings Report & Investor Presentation
On Holding AG FY2023 Annual Report
Official Company Website (on-running.com)
Publicly available market data and financial news (e.g., Bloomberg, Reuters)
Industry reports on the global sportswear and footwear market

Profit: CHF 79.6 million (FY 2023 Net Income)

Market Cap: $11.5 Billion (June 2024)

Stock Performance

Annual Report: View Report

Debt: CHF 12.8 million Lease Liabilities (Q1 2024)

ROI Impact: Growth focus may pressure short-term ROI.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Category Challenger

ICM Index

STRATEGIC ADVISOR ASSESSMENT

On's high ambition is balanced by solid, though not dominant, achievability signals. The SWOT is tense, with significant upside nearly matched by severe competitive and execution risks. The OKRs are strong and category-shaping. The core strategy is clear and durable. While AI potential is present, it's not yet a core advantage. The result is a high-potential Category Challenger, whose growth hinges on executing its apparel and China expansion plans flawlessly against formidable incumbents.

SWOT Factors

Upside: 83.3 Risk: 80.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Accelerate apparel from a weakness to a core strength.

Execute China market entry with precision and speed.

Leverage AI in supply chain to protect and expand margins.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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