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On

To create revolutionary running shoes by becoming the global leader in performance athletic footwear innovation



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SWOT Analysis

Updated: September 17, 2025 • 2025-Q3 Analysis

The SWOT analysis reveals On's remarkable position as a premium athletic footwear disruptor built on proprietary CloudTec technology and strategic partnerships. Their 67% revenue growth demonstrates exceptional market validation, while Roger Federer's endorsement provides unparalleled brand credibility. However, scaling challenges and intense competition from Nike and Adidas require immediate attention. The $95 billion athletic footwear market expansion, coupled with growing wellness trends, presents extraordinary opportunities. On must aggressively scale production capacity while diversifying beyond running to capture lifestyle segments. Their sustainability focus aligns perfectly with consumer preferences, creating a sustainable competitive moat. Success hinges on maintaining premium positioning while achieving operational scale to compete with industry giants.

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To create revolutionary running shoes by becoming the global leader in performance athletic footwear innovation

Strengths

  • TECHNOLOGY: Proprietary CloudTec sole technology drives differentiation
  • BRAND: Roger Federer partnership elevates premium positioning globally
  • GROWTH: 67% revenue growth demonstrates strong market demand momentum
  • MARGINS: Premium pricing strategy maintains healthy profit margins
  • INNOVATION: Continuous R&D investment fuels product advancement

Weaknesses

  • SCALE: Limited production capacity constrains growth potential
  • DEPENDENCE: Over-reliance on running segment limits diversification
  • COSTS: High premium positioning increases price sensitivity risks
  • SUPPLY: Concentrated Asian manufacturing creates vulnerability
  • AWARENESS: Lower brand recognition versus established competitors

Opportunities

  • EXPANSION: Massive $95B global athletic footwear market growth
  • LIFESTYLE: Growing wellness trends increase running participation
  • SUSTAINABILITY: Eco-conscious consumers demand sustainable products
  • DIGITAL: Direct-to-consumer growth accelerates online sales
  • CATEGORIES: Adjacent sports markets offer expansion potential

Threats

  • COMPETITION: Nike and Adidas massive marketing budgets
  • ECONOMY: Economic downturn impacts premium pricing power
  • SUPPLY: Raw material inflation pressures margin stability
  • RETAIL: Traditional retail partner channel disruption
  • TECHNOLOGY: Competitors copying CloudTec innovations

Key Priorities

  • SCALE: Accelerate production capacity to meet growing demand
  • DIVERSIFY: Expand beyond running into lifestyle categories
  • COMPETE: Strengthen brand marketing against major rivals
  • SUSTAIN: Lead sustainability innovation for competitive edge

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Strategic OKR Plan

Updated: September 17, 2025 • 2025-Q3 Analysis

This SWOT analysis-driven OKR plan strategically addresses On's critical scaling challenges while leveraging their premium positioning. The four-pillar approach balances operational excellence with strategic expansion, ensuring sustainable growth trajectory. Scaling operations directly tackles their biggest constraint, while category diversification reduces running segment dependence. Competing with giants through enhanced brand building and sustainability leadership creates differentiated value propositions that justify premium pricing in an increasingly competitive landscape.

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To create revolutionary running shoes by becoming the global leader in performance athletic footwear innovation

SCALE OPERATIONS

Accelerate production capacity to meet explosive demand

  • CAPACITY: Increase manufacturing output by 45% through new partnerships by Q3
  • SUPPLY: Implement predictive inventory system reducing stockouts by 60%
  • EFFICIENCY: Reduce manufacturing cost per unit by 12% through automation
  • FORECAST: Deploy AI demand planning achieving 85% accuracy improvement
EXPAND BEYOND RUNNING

Diversify into lifestyle and training categories

  • LIFESTYLE: Launch 3 lifestyle CloudTec models capturing 15% category share
  • TRAINING: Introduce cross-training line generating $50M revenue
  • TENNIS: Expand tennis collection with 8 new performance models
  • APPAREL: Grow apparel revenue by 80% through premium collections
COMPETE WITH GIANTS

Strengthen brand against Nike and Adidas dominance

  • AWARENESS: Increase unaided brand awareness by 35% in key markets
  • PARTNERSHIPS: Sign 15 professional athletes across multiple sports
  • DIGITAL: Achieve 25% improvement in e-commerce conversion rates
  • RETAIL: Secure premium placement in 200+ specialty stores
LEAD SUSTAINABILITY

Pioneer eco-innovation for competitive advantage

  • MATERIALS: Launch 100% recycled CloudTec sole technology
  • CARBON: Achieve carbon neutral manufacturing operations
  • RECYCLING: Implement shoe take-back program in 10 countries
  • CERTIFICATION: Obtain B-Corp certification for sustainability leadership
METRICS
  • Net Sales Growth: 45%
  • Gross Margin: 58%
  • Brand Awareness: 25%
VALUES
  • Innovation
  • Performance
  • Sustainability
  • Premium Quality
  • Athlete-Centric

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On Retrospective

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To create revolutionary running shoes by becoming the global leader in performance athletic footwear innovation

What Went Well

  • REVENUE: 67% growth exceeded market expectations significantly
  • MARGINS: Maintained premium pricing power successfully
  • EXPANSION: Strong international market penetration
  • PARTNERSHIP: Roger Federer collaboration drove brand elevation
  • SUSTAINABILITY: ESG initiatives resonated with target customers

Not So Well

  • SUPPLY: Production capacity constrained growth potential
  • COSTS: Rising manufacturing expenses pressured margins
  • COMPETITION: Lost market share to Hoka growth
  • INVENTORY: Demand forecasting accuracy needs improvement
  • DIGITAL: E-commerce conversion rates below industry average

Learnings

  • DEMAND: Premium running market larger than anticipated
  • SUSTAINABILITY: Eco-friendly materials drive purchase decisions
  • DIRECT: DTC channels provide higher profitability
  • INNOVATION: Continuous product updates maintain differentiation
  • PARTNERSHIPS: Celebrity endorsements accelerate brand building

Action Items

  • CAPACITY: Increase manufacturing partnerships immediately
  • FORECAST: Implement advanced demand planning systems
  • CONVERSION: Optimize website user experience design
  • COMPETE: Accelerate lifestyle category product launches
  • EFFICIENCY: Streamline supply chain cost structure

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On Market

  • Founded: 2010 in Switzerland
  • Market Share: 2% global athletic footwear market
  • Customer Base: Premium runners and athletes worldwide
  • Category:
    Athletic Footwear
  • Location: Zurich, Switzerland
  • Zip Code: 8001
  • Employees: 2,800 global employees
Competitors
Nike logo
Nike
Adidas logo
Adidas
Brooks logo
Brooks
Hoka logo
Hoka
Allbirds logo
Allbirds
Products & Services
No products or services data available
Distribution Channels

On Product Market Fit Analysis

Updated: September 17, 2025

On revolutionizes athletic performance through proprietary CloudTec technology, delivering premium Swiss-engineered footwear that reduces injury while enhancing running experience. Unlike traditional shoes, On's innovative sole design provides superior cushioning and energy return, trusted by elite athletes like Roger Federer. The company combines sustainability with performance, creating footwear that elevates athletic achievement while protecting the planet.

1

Revolutionary CloudTec cushioning technology

2

Premium Swiss engineering precision

3

Sustainable performance innovation



Before State

  • Generic running shoes cause injury pain
  • Uncomfortable long-distance running
  • Lack premium performance features

After State

  • Revolutionary CloudTec cushioning comfort
  • Enhanced performance with Swiss precision
  • Sustainable premium athletic footwear

Negative Impacts

  • Reduced athletic performance levels
  • Higher injury risk during training
  • Poor running experience satisfaction

Positive Outcomes

  • Improved running performance metrics
  • Reduced injury rates significantly
  • Enhanced athlete satisfaction scores

Key Metrics

85% customer retention rate
Net Promoter Score of 72

Requirements

  • CloudTec technology integration needed
  • Premium materials sourcing required
  • Swiss engineering quality standards

Why On

  • Proprietary CloudTec sole manufacturing
  • Elite athlete testing partnerships
  • Sustainable material innovation focus

On Competitive Advantage

  • Patented CloudTec technology exclusivity
  • Roger Federer brand partnership power
  • Swiss precision engineering heritage

Proof Points

  • 72 NPS score customer satisfaction
  • 85% retention rate among runners
  • 50+ professional athlete endorsements
On logo

On Market Positioning

What You Do

  • Premium athletic footwear with CloudTec tech

Target Market

  • Performance-focused runners and athletes

Differentiation

  • Proprietary CloudTec sole technology
  • Swiss engineering precision
  • Premium sustainability focus
  • Elite athlete partnerships

Revenue Streams

  • Athletic footwear sales
  • Apparel collections
  • Accessories
  • Limited editions
On logo

On Operations and Technology

Company Operations
  • Organizational Structure: Matrix organization with regional focus
  • Supply Chain: Vietnam, China manufacturing partners
  • Tech Patents: CloudTec sole technology patents
  • Website: https://www.on.com
Top Clients

On Competitive Forces

Threat of New Entry

MEDIUM: High capital requirements and brand building costs create barriers, but DTC models lower entry costs

Supplier Power

MEDIUM: Limited CloudTec technology suppliers create dependence, but multiple manufacturing partners reduce overall risk

Buyer Power

MEDIUM: Premium positioning limits price sensitivity, but customers have numerous athletic footwear alternatives

Threat of Substitution

HIGH: Traditional running shoes, lifestyle sneakers, and emerging technologies threaten market position

Competitive Rivalry

HIGH: Nike, Adidas dominate with massive marketing budgets and global distribution, while emerging brands like Hoka gain share

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Analysis of AI Strategy

Updated: September 17, 2025 • 2025-Q3 Analysis

On's AI strategy must accelerate dramatically to maintain competitive advantage in the rapidly evolving athletic footwear landscape. While their direct-to-consumer platform provides valuable data foundations, they lag behind Nike's sophisticated AI capabilities. The opportunity for AI-powered personalized fitting and manufacturing automation could revolutionize their premium positioning. However, talent acquisition and infrastructure investments require immediate prioritization. AI-driven customization aligns perfectly with their premium brand strategy, potentially creating unprecedented customer experiences. Success demands aggressive AI investment while maintaining their human-centered design philosophy.

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To create revolutionary running shoes by becoming the global leader in performance athletic footwear innovation

Strengths

  • DATA: Strong DTC platform generates valuable customer insights
  • PERSONALIZATION: AI-driven product recommendations boost sales
  • DESIGN: Machine learning accelerates footwear development cycles
  • SUPPLY: Predictive analytics optimize inventory management
  • CUSTOMER: AI chatbots enhance customer service experience

Weaknesses

  • INVESTMENT: Limited AI budget versus tech-focused competitors
  • TALENT: Shortage of specialized AI engineering expertise
  • INFRASTRUCTURE: Legacy systems constrain AI implementation
  • ANALYTICS: Insufficient data science team capacity
  • INTEGRATION: Disconnected systems hinder AI deployment

Opportunities

  • CUSTOMIZATION: AI-powered personalized shoe fitting technology
  • MANUFACTURING: AI automation reduces production costs significantly
  • MARKETING: Predictive analytics improve customer acquisition
  • INNOVATION: AI accelerates material science breakthroughs
  • EXPERIENCE: Virtual try-on technology enhances online shopping

Threats

  • COMPETITORS: Nike's advanced AI capabilities create advantages
  • PRIVACY: Data regulations limit AI personalization capabilities
  • COSTS: AI infrastructure investments strain financial resources
  • DISRUPTION: Tech companies entering athletic footwear space
  • DEPENDENCE: Over-reliance on AI reduces human creativity

Key Priorities

  • INVEST: Significantly increase AI talent and infrastructure
  • PERSONALIZE: Deploy AI-powered custom fitting solutions
  • AUTOMATE: Implement AI manufacturing process optimization
  • COMPETE: Match Nike's AI marketing sophistication levels

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On Financial Performance

Profit: CHF 45M net income 2023
Market Cap: $3.2B market capitalization
Annual Report: View Report
Debt: Minimal debt, strong balance sheet
ROI Impact: 22% gross margin improvement target
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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