ASICS is a Japanese corporation that produces sportswear and sporting equipment. They are following a new plan to help them grow more within the global market of the sporting goods in the long-term. They have subsidiaries in 45 different countries which makes them experienced in doing businesses abroad their country making them a multinational corporation. They specialize more in running shoes but looking to expand more in their products' diversity in the future by opening more flagships around the world in the next three years (Marketing Week, 2017).
ASICS Corporation is a Japanese multinational Corporation based in Kobe, Japan. It is well known for its sportswear and sports equipment products. The company is mainly known for their sports footwear but they also produce other sports apparel and equipment. ASICS was first founded as Onitsuka Co., Ltd. By Mr. Kihachiro Onitsuka in September 1, 1949 by making basketball shoes in his own living room in Kobe, Japan. He then changed the name of the company to ASICS in 1977 which was an abbreviation to a Latin phrase “Anima Sana In Corpore Sano” meaning; a sound mind in a sound body. ASICS products first made an entrance to the US market in 1977. The company's products are sold worldwide now and the company has office locations all over the world in every continent. ASICS has 7,864 employees and has annual sales of 399,107 million yen. (ASICS, 2017)
Company's International Strategy
ASICS corporate has 45 subsidiaries overseas (America, Europe, Oceania, South East, South and East Asia, and other countries) (ASICS, 2017). However, the manufacturers of their products are usually in China, Vietnam and Indonesia and ship those products from these countries to Los Angeles towards the sales of ASICS America. (Supply Chain Quarterly, 2017). ASICS started their Research & Development department after opening the Research Institute of Sports Science in Kobe, Japan. The institute lies on an area of approximately 45,000 square feet, has a running track of 350m that tests in all weathers, basketball and volleyball fields and test rooms. (ASICS, 2017). Most companies manufacture their products in Asia due to the low wages and prices of operating the manufacturing of the products there. Having subsidiaries in America and Europe is also a wise idea because these countries have good physical education awareness within their populations, therefore selling ASICS's products there will actually bring success in terms of sales to the company like what happened in ASICS America in 2008 where they were fearing that their own distribution channels wouldn't keep up with the high demand of ASICS's products (Supply Chain Quarterly, 2017). ASICS's main competitors are Nike, Adidas and Fila. ASICS would be competing with them on the footwear, apparel and sporting equipment (D&B Hoovers, 2017). In my opinion selling only certain types of products like footwear and apparel only and not selling all sporting products like football and soccer shoes would be a weakness, in other words; the lack of diversity in their products could be a weakness in my opinion. On the other hand, this lack of diversity could be a strength in one case; they will be dedicated to improving those specific types of products only to be one of the leading brands in them. The Company is implementing a long-term strategy in positioning the company as specialists in running shoes but in terms of short-term planning, the company doesn't seem to have a clear plan as their sponsorship deals are not that remarkable.
Company's Marketing Approach
ASICS started to have a new marketing approach by opening their largest store in London on an area of 9042 square feet this month (Retail Detail, 2017). The company opened the store in London in time of the start of the athletics World Championship that started 4th of August and introducing a new slogan for the marketing campaign “I Move Me”. This slogan will also have different versions depending of the location, for example it will say “I Move London” in London. They are also looking to open other flagships in other big cities like; New York and Tokyo and other stores in the next three years. Retail is an effective way in marketing as said by Paul Miles from ASICS; “Retail is another brand communication channel. That is why we have to open more stores because it is a channel to communicate the brand with our consumer.” (Marketing Week, 2017). ASICS has invested about 300 million pounds in future brand expand plans (The Telegraph, 2017).
Company's Logistics Approach
ASICS America produces its products in China, Vietnam and Indonesia due to the cheap wages and cheaper raw materials there and due to the fall of logistics prices, carrying the manufacturing of the products in these countries would be a good decision (Supply Chain Quarterly, 2017).
Company's Human Resource Management (HMR) Approach
ASICS has 7,864 employees and they have a serious respect to human rights in the workplace and the society. They have a global code of conduct according to their website; they constantly review all the countries that they have businesses with to make sure that they maintain the optimum work ethics in their workplace and to ensure to maintain a long-term relationship with these countries. They have clear steps to maintain a “sound workplace”; they do not tolerate any discrimination and any form of harassment. They care about their employees and maintain equal rights to all of their employees and prohibit any loans to board members. (ASICS, 2017).
Analysis, Recommendations and Conclusion
I would see the benefits of letting ASICS do business in our country in their long-term vision of growing in the global market and if they succeed in growing while having good business in our country, we would also benefit from their growth and grow more with them and probably their business would expand in our own country. They would also respect and treat our national workforce fairly and develop them with their own experiences and improve them. ASICS also didn't have any problems in any of the countries they have business with, therefore I interpret that they would also do the same with us as a nation. The risks could lie in not having a market in our country as we might fear that our population might not be interested in the types of products sold by ASICS, unless ASICS would start a stream of products that would be tailored to fit our people.
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