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"on" business case
International Elective I Juan Carlos Rivera
Stick to their highly specialized segment
Move into more "mainstream" models and consumers
Evolving into a Market Leader:
Create a new consumer
Moving forward
Iliana Mireya Mata Ortega A01211452 Irving Eduardo Hernández Aguilar A01531674 Gabriela Licona Olvera A01531657
Karen Daniela Franco Carmona A00756514Naomi Méndez Villegas A01337055
What two specific steps would you suggest to the company moving fwd.?
Create a new segment for non-runners
Target: users with the premise that running shoes are not just about performance, but mainly about comfort. Active People looking for quality pair of shoes Non-Active People wanting a brand-new style
Customer experience is the most important thing
- Take the user experience to the maximum
- Custom footwear
- Dynamic and modifiable shoes for the situation
- Smart casual
- Community of runners within institutions
- Linkage with shoe artists
Should they stick to their highly specialized segment?
Should they move into more "mainstream" models and consumers?
- Reaching a much broader audience, would mean increasing revenue and sales.
- Could have more opportunities to expand into new markets and product categories.
- More leverage in negotiations with retailers.
- Greater visibility in important sporting events, increasing brand awareness and recognition.
- Could attract elite athletes and celebrities for collaborations and sponsorships, which could increase its prestige and appeal.
- Transitioning to a mainstream brand can be a complicated process and requires careful management to maintain the authenticity and quality that attracted consumers in the first place.
- There could be challenges associated with managing growth and competition in the broader market.
Should they create a new consumer (blue ocean)?
The value that "On" provides to their customers was taylored with the combination of passion, experience, right agreements and decisions, and market trends. Even though it might be tempting to go blue ocean, we suggest attending the highly specialized market is the main focus. Benefits: Expertise and reputation, brand loyalty, competitive advantages. Drawbacks: Market saturation, seasonality, dependency on consumer behaviour. In the long term, a blue ocean approach will be needed due to competition; some elements that should be considered are: Diversification, growth potential, brand (r)evolution, risk of dilution, market entry.