On Holding AG (ONON): Business Model Canvas

Introduction

Welcome to our latest blog post where we will be diving into the business model canvas for On Holding AG (ONON), a company that is revolutionizing the athletic footwear industry with its innovative products. With the global athletic footwear market witnessing significant growth in recent years, it is essential to understand the key factors driving this industry and how On Holding AG is positioning itself for success.

According to the latest industry reports, the athletic footwear market is expected to reach a value of $115.6 billion by 2025, with a compound annual growth rate (CAGR) of 5.1% from 2020 to 2025. This growth is attributed to the increasing participation in sports and fitness activities, rising health awareness, and the growing trend of athleisure wear. Furthermore, advancements in shoe technology and the demand for high-performance footwear are driving the market's expansion.

• Key Partners: On Holding AG collaborates with various partners including manufacturers, suppliers, retailers, and distributors to ensure the production, distribution, and sale of their innovative athletic footwear products. They also collaborate with athletes and sports teams to promote their brand and gain market visibility. Additionally, they partner with technology companies to develop and enhance their shoe technology.
• Key Activities: On Holding AG focuses on designing, manufacturing, and marketing technologically advanced and high-performance athletic footwear. They continuously invest in research and development to improve their shoe technology and innovate new products. The company also engages in marketing and promotional activities to create brand awareness and drive sales.
• Key Resources: The key resources for On Holding AG include their research and development capabilities, manufacturing facilities, supply chain network, and their brand reputation. They also rely on their partnerships with manufacturers, suppliers, and retailers to ensure the availability and distribution of their products.

As we delve into the business model canvas for On Holding AG, we will explore how the company leverages its key partners, activities, resources, and value proposition to cater to its customer segments and generate revenue. Stay tuned as we unravel the intricacies of this innovative business model!

Key Partnerships

On Holding AG relies on a number of key partnerships to support its business operations and deliver value to its customers. These partnerships include:

• Manufacturing Partners: ONON has strategic partnerships with manufacturing companies to produce its innovative running shoes. These partnerships ensure high-quality production and timely delivery of products to meet customer demand.
• Retail Partners: ONON collaborates with retail partners and distributors to expand its reach and make its products available to a wider audience. These partnerships help ONON to increase its sales and brand visibility in different markets.
• Technology Partners: ONON works with technology partners to enhance its digital presence and improve its e-commerce platforms. These partnerships help ONON to provide a seamless and engaging online shopping experience for its customers.
• Sponsorship Partners: ONON partners with athletes, sports teams, and events to promote its brand and products. These partnerships help ONON to build credibility, increase brand awareness, and reach its target audience through sports marketing initiatives.
• Logistics Partners: ONON collaborates with logistics partners to streamline its supply chain and ensure efficient distribution of its products. These partnerships are crucial for ONON to deliver orders promptly and maintain customer satisfaction.

These key partnerships play a vital role in ONON's business model, enabling the company to leverage external expertise, resources, and networks to drive its growth and success in the competitive sportswear industry.

Key Activities

On Holding AG (ONON) engages in several key activities to effectively operate and grow its business. These activities include:

• Research and Development: Constantly innovating and improving its product offerings to stay ahead of the competition and meet the evolving needs of its customers.
• Manufacturing: Producing high-quality running shoes and other athletic footwear using advanced technology and sustainable practices.
• Marketing and Branding: Creating compelling marketing campaigns and building a strong brand identity to attract and retain customers.
• Sales and Distribution: Establishing partnerships with retailers and e-commerce platforms to make ONON products easily accessible to consumers worldwide.
• Customer Service: Providing exceptional customer support and maintaining strong relationships with customers to ensure satisfaction and loyalty.
• Expansion and Growth: Identifying new markets and opportunities for expansion, as well as strategic partnerships and acquisitions to fuel growth.
• Corporate Social Responsibility: Engaging in sustainable and socially responsible practices, such as environmental initiatives and community involvement.

Key Resources

The key resources for ONON include:

• Technology: ONON relies heavily on its technological infrastructure, including its cloud-based platforms, data analytics tools, and digital marketing capabilities. This technology is essential for managing inventory, tracking sales, and optimizing customer experiences.
• Manufacturing Facilities: ONON owns and operates state-of-the-art manufacturing facilities where its innovative athletic footwear is produced. These facilities are a critical resource for maintaining quality control and meeting production demands.
• Supply Chain: A robust and efficient supply chain is essential for ONON's operations. This includes relationships with suppliers of raw materials, transportation and logistics partners, and distribution networks to ensure timely delivery of products to customers.
• Talent: ONON's team of skilled professionals, including designers, engineers, marketers, and sales staff, are a valuable resource. Their expertise and creativity drive product innovation, brand development, and customer engagement.
• Brand and Intellectual Property: ONON's brand reputation and intellectual property, including patents and trademarks, are key resources that differentiate its products from competitors and provide a competitive advantage in the market.
• Financial Capital: Access to capital, whether through equity investments, loans, or revenue generation, is crucial for funding research and development, marketing initiatives, and expansion efforts.

Value Propositions

On Holding AG (ONON) offers a range of value propositions to its customers, including:

• Performance: Our innovative, Swiss-engineered running shoes are designed to provide exceptional performance, allowing athletes to reach their full potential.
• Comfort: We prioritize comfort in our shoe designs, utilizing cutting-edge materials and technology to ensure a comfortable fit for our customers.
• Style: ONON offers stylish and versatile footwear options that cater to the fashion-conscious consumer, allowing them to express their personal style while enjoying the benefits of high-performance footwear.
• Durability: Our products are built to last, with a focus on durability and longevity, providing customers with a reliable and long-lasting footwear solution.
• Innovation: ONON is committed to innovation, continuously developing and improving our products to stay ahead of industry trends and meet the evolving needs of our customers.

These value propositions combine to offer customers a unique and compelling footwear experience, setting ONON apart in the competitive athletic wear market.

Customer Relationships

The customer relationships for ON Holding AG are built on the principles of personalized service, strong communication, and exceptional support. The company focuses on creating long-term relationships with its customers by providing them with a seamless and positive experience throughout their journey with the brand.

• Personalized Service: ON Holding AG aims to understand the unique needs and preferences of each customer and tailor its products and services to meet those specific requirements. This personalized approach helps in building a strong rapport with the customers and fosters loyalty.
• Strong Communication: The company maintains open and transparent communication with its customers through various channels such as social media, email, and customer support. This allows ON Holding AG to address any concerns or feedback promptly and effectively, thereby strengthening the customer relationships.
• Exceptional Support: ON Holding AG is committed to providing exceptional support to its customers at every touchpoint. Whether it is pre-sale inquiries, post-sale support, or technical assistance, the company ensures that customers receive the help they need in a timely and efficient manner.

Overall, ON Holding AG prioritizes the satisfaction and success of its customers, and the customer relationships are nurtured through a combination of personalized service, strong communication, and exceptional support.

Channels

Direct Sales: ONON can use direct sales channels to sell its products and services to customers through its own sales team or online platform. This allows the company to have full control over the sales process and customer interactions.

Retail Partnerships: ONON can also establish partnerships with retail stores to distribute its products. This allows the company to reach a wider customer base and leverage the existing customer traffic of the retail partners.

Online Platforms: The company can utilize online platforms such as its own website, e-commerce platforms, and social media channels to reach customers directly and facilitate online sales. This channel provides convenience for customers and allows for a global reach.

Wholesale Distribution: ONON can also utilize wholesale distribution channels to sell its products to other businesses, such as retailers, who then sell the products to end customers. This channel allows the company to reach a broader customer base and leverage the networks of its wholesale partners.

Strategic Alliances: The company can form strategic alliances with other businesses to access their customer base and distribution channels. This can include partnerships with complementary product companies, industry influencers, or other businesses with a similar target market.

After-Sales Service: ONON can also provide after-sales services through channels such as customer support hotlines, online chat support, and service centers. This ensures a positive customer experience and can lead to repeat sales and referrals.

Customer Segments

ON Holding AG serves several customer segments within the sports and outdoor industry. The primary customer segments include:

• Professional Athletes: ONON caters to professional athletes who require high-performance footwear and apparel for training and competition.
• Recreational Athletes: The company also targets recreational athletes who are looking for comfortable and stylish sports and outdoor gear for their activities.
• Fitness Enthusiasts: ONON's customer segments also include fitness enthusiasts who seek functional and fashionable workout attire and footwear.
• Outdoor Adventurers: Outdoor adventurers, such as hikers, trail runners, and outdoor enthusiasts, are another key customer segment for ONON.
• Retail Partners: In addition to serving individual consumers, ONON also caters to retail partners such as sports stores, specialty shops, and online retailers who sell ONON products to their customers.

Each of these customer segments has distinct needs and preferences, and ONON's product offerings are designed to meet the requirements of each segment, whether it's performance, comfort, style, or versatility.

Cost Structure

The cost structure for On Holding AG (ONON) encompasses various expenses associated with running the business and delivering its products to customers. These costs include:

• Manufacturing Costs: ONON incurs expenses related to the production of its athletic footwear, including raw materials, labor, and equipment.
• Research and Development: The company invests in R&D to innovate and improve its product offerings, resulting in expenses for technology, personnel, and testing.
• Marketing and Advertising: ONON allocates funds for marketing campaigns, brand promotions, and advertising efforts to reach and engage its target audience.
• Distribution and Logistics: Costs associated with warehousing, transportation, and fulfillment to deliver products to retailers and customers globally.
• Operating Expenses: This category includes administrative costs, rent, utilities, insurance, and other general expenses to support the day-to-day operations of the business.
• Employee Salaries and Benefits: ONON compensates its workforce, including salaries, bonuses, benefits, and incentives, as part of its cost structure.
• Technology and IT Infrastructure: The company invests in technology systems, software, and infrastructure to support its digital operations and online presence.
• Legal and Regulatory Compliance: Costs associated with legal counsel, compliance, and regulatory requirements to ensure adherence to laws and standards in various markets.

By understanding and managing these cost components, ONON aims to optimize its cost structure while maintaining high-quality products and services for its customers.

Revenue Streams

ON Holding AG generates revenue through the following streams:

• Product Sales: ON Holding AG generates revenue through the sale of its flagship product, the On Cloud running shoe. The company offers a range of models and styles to cater to different customer preferences and needs.
• Accessories and Apparel: In addition to its core product, ON Holding AG also generates revenue through the sale of accessories and apparel designed for running and outdoor activities. This includes items such as socks, jackets, and hats.
• Licensing and Partnerships: ON Holding AG generates revenue through licensing agreements and partnerships with other companies. This may include co-branded products, collaborations with other brands, or licensing of its patented technology.
• Online Sales: The company has a strong online sales channel, which allows customers to purchase products directly from its website. This channel contributes to a significant portion of the company's revenue.
• Retail and Wholesale: ON Holding AG also generates revenue through retail and wholesale channels, selling its products through authorized retailers and distributors globally.

These revenue streams collectively contribute to the overall financial performance of ON Holding AG and support its growth and expansion strategies.

Conclusion

In conclusion, On Holding AG (ONON) has developed a comprehensive and well-structured business model canvas that captures the key elements of our business strategy. By focusing on customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure, we have been able to clearly define how we create, deliver, and capture value in our business.

• Our thorough analysis of customer segments has allowed us to tailor our offerings to meet the specific needs and preferences of our target market.
• We have identified our unique value propositions and developed channels and customer relationships that enable us to effectively deliver our products and services to our customers.
• Our diverse revenue streams and cost structure have been carefully considered to ensure profitability and sustainability in the long term.
• Additionally, our key resources, activities, and partnerships have been identified and leveraged to strengthen our competitive advantage and enhance our operational efficiency.

Overall, the Business Model Canvas for ONON provides a clear and concise overview of our business model, highlighting the key components that drive our success and outlining the strategic direction for the future. It serves as a valuable tool for guiding decision-making, fostering innovation, and communicating our business model to stakeholders.