The On brand is a Swiss-based running shoe company known to have disrupted the sneaker industry in early 2010s. It presented an evolutionary design and technology which sought to limit the ground impact during activity while simultaneously providing an explosive push, innovative at the time when shoes usually had to sacrifice one for the other. The company is international but based in Zurich, Switzerland as its main office with company staff of approximately 500. Its products sell in over 50 countries and 5,000 retailers, reaching a peak in 2019. Overall, it is a relatively small company that has been able to achieve an extraordinarily high-profile success in one of the most competitive and difficult to enter markets due to its brand and technology.
One of the primary strengths of On is its innovation, which typically goes beyond competitors and can be seen both in its products (the cloud technology) and its business practices (rapid digitization of sales). However, that fits in with their values to disrupt the market to create the best possible product for the consumer. Notably, upon founding the company, the founders did not put a product right away but worked on a prototype until they were satisfied with the quality and it had undergone rigorous testing in order to actually fulfill its marketing claims. This shows commitment to their values of being straightforward and customer-oriented. The company values quality over quantity. Unlike competitors which can put out tens of various types of running shoes per year, On only has several, and sometimes waiting to release new technology. Their customer-centric approach to sales is also a significant strength, even as the dedicate resources to it across thousands of retailers, fitting in with their values of a small company at its roots where every customer matters.
As mentioned while their product offerings are slim allowing to focus on quality, it is also a weakness. Due to this approach On, despite phenomenal products, became a niche company. The brand name is not recognizable outside the athletic and running communities by everyday consumers, and most would not spend the amount of money on a premium-level shoe. It would have been wise to potentially adopt some form their cloud technology in more everyday streetwear. Another weakness is the company’s reliance on external organizations for operations, ranging from retail sales to logistics and warehousing, production, and even marketing. Even with careful auditing and control, there is potential for things to go wrong, and it could damage the brand’s reputation. However, at the same time it is the only realistic way that a small company could operate at the international level, and because On chose to pursue this strategy of expansive international sales growth, it has to rely on these networks of suppliers.
Looking at the founding team of On, it is a great combination of people, both from a personal and professional perspective. The three men are friends, and each contributed their part and expertise to eventually launch the company and brand known today. Olivier Bernhard is an ex-professional competitor which created the prototype of the original cloud technology shoe. He offers the insight of what athletes may need in On products and oversees the research and development of the technical performance footwear at the company. David Alleman is the marketing genius behind the company, helping to drive this small unknown brand into international markets and both b2b and direct-to-consumer sales. He is the CFO of the company, also overseeing some supply chains, financing, and digitization of the marketing and sales, a space where On was also one of the first in the industry. Finally, Caspar Coppetti has an expertise in management, and joined in with his friends to found On which he saw as a visionary product not just for running but active footwear as well. He aids with day-to-day operations as well as elements of leadership, brand development, and communication strategies for the firm.