{"product_id":"onon-vrio-analysis","title":"On Holding AG (ONON): VRIO Analysis [Mar-2026 Updated]","description":"\u003cbr\u003e\u003cp\u003eUnlock the secrets to On Holding AG (ONON)'s market power! This VRIO analysis cuts straight to the chase, evaluating whether its core assets are truly Valuable, Rare, Inimitable, and Organized, with the distilled summary of our findings presented in \u0026amp;O4\u0026amp;. Don't just wonder about their advantage - read on to see the definitive assessment of their sustainable competitive edge.\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eOn Holding AG (ONON) - VRIO Analysis: Proprietary Cushioning Technology \u0026amp; IP\n\u003c\/h2\u003e\n\n\u003cp\u003eYou’re looking at On Holding AG’s core engine: the tech that lets them charge a premium. Honestly, the combination of CloudTec, Helion superfoam, and Speedboard is what keeps their gross margins high, like the 61.5% they hit in Q2 2025. That’s the value right there.\u003c\/p\u003e\n\n\u003ch3\u003eValue: Premium Ride Justifies Price\u003c\/h3\u003e\n\u003cp\u003eThe patented cushioning systems deliver a ride quality that lets On Holding AG command top dollar. It’s not just marketing fluff; the market pays for it. They are projecting a full-year 2025 gross profit margin in the range of 60.0% - 60.5%, which directly reflects the perceived value of this proprietary feel. That’s the proof in the pudding, or in this case, the foam.\u003c\/p\u003e\n\n\u003ch3\u003eRarity: Industry Recognition Confirms Uniqueness\u003c\/h3\u003e\n\u003cp\u003eWhile others focus on midsoles, On Holding AG’s specific execution, especially with the upper material tech, is genuinely rare. They were named #1 in the Design category by Fast Company for their LightSpray™ technology in 2025. This level of design and material innovation recognition is not something you see every day from a legacy competitor.\u003c\/p\u003e\n\n\u003ch3\u003eImitability: Time and Iteration as Barriers\u003c\/h3\u003e\n\u003cp\u003eLook, a competitor can try to reverse-engineer the core concepts, sure. But matching the specific material science and the years of iterative refinement - that takes serious time and capital. The fact that On Holding AG opened its first fully automated LightSpray™ production facility in Zurich on \u003cstrong\u003eJuly 3, 2025\u003c\/strong\u003e, shows they’ve made a significant, hard-to-replicate operational investment. It’s not just a patent on paper; it’s a functioning, scaled process.\u003c\/p\u003e\n\n\u003ch3\u003eOrganization: Exploiting the Pipeline\u003c\/h3\u003e\n\u003cp\u003eThe company is definitely organized to exploit this asset. They aren't just sitting on the IP; they are pushing it to market. This confidence is why they raised their full-year 2025 net sales guidance to at least CHF 2.86 billion at current spot rates. They are structured to commercialize these innovations quickly, which is key to maintaining an edge.\u003c\/p\u003e\n\n\u003cp\u003eHere’s the quick math on what this means for their competitive standing:\u003c\/p\u003e\n\u003ctable\u003e\n  \u003ctr\u003e\n    \u003cth\u003eVRIO Dimension\u003c\/th\u003e\n    \u003cth\u003eAssessment\u003c\/th\u003e\n    \u003cth\u003eScore (1-4)\u003c\/th\u003e\n    \u003cth\u003eCompetitive Implication\u003c\/th\u003e\n  \u003c\/tr\u003e\n  \u003ctr\u003e\n    \u003ctd\u003eValue\u003c\/td\u003e\n    \u003ctd\u003eHigh (Supports premium pricing)\u003c\/td\u003e\n    \u003ctd\u003e\u003cstrong\u003e4\u003c\/strong\u003e\u003c\/td\u003e\n    \u003ctd\u003eCompetitive Parity to Temporary Advantage\u003c\/td\u003e\n  \u003c\/tr\u003e\n  \u003ctr\u003e\n    \u003ctd\u003eRarity\u003c\/td\u003e\n    \u003ctd\u003eHigh (Unique combination, LightSpray™ recognition)\u003c\/td\u003e\n    \u003ctd\u003e\u003cstrong\u003e3\u003c\/strong\u003e\u003c\/td\u003e\n    \u003ctd\u003eTemporary Competitive Advantage\u003c\/td\u003e\n  \u003c\/tr\u003e\n  \u003ctr\u003e\n    \u003ctd\u003eImitability\u003c\/td\u003e\n    \u003ctd\u003eModerate\/Costly (Scaling LightSpray™ is complex)\u003c\/td\u003e\n    \u003ctd\u003e\u003cstrong\u003e3\u003c\/strong\u003e\u003c\/td\u003e\n    \u003ctd\u003eTemporary Competitive Advantage\u003c\/td\u003e\n  \u003c\/tr\u003e\n  \u003ctr\u003e\n    \u003ctd\u003eOrganization\u003c\/td\u003e\n    \u003ctd\u003eHigh (Raised guidance, scaled production)\u003c\/td\u003e\n    \u003ctd\u003e\u003cstrong\u003e4\u003c\/strong\u003e\u003c\/td\u003e\n    \u003ctd\u003eSustained Competitive Advantage\u003c\/td\u003e\n  \u003c\/tr\u003e\n\u003c\/table\u003e\n\n\u003cp\u003eWhat this estimate hides is the exact dollar value of their patent portfolio, which isn't public, but the market reaction to their tech - like the Q2 revenue growth of 32% year-over-year - speaks volumes. The continuous pipeline keeps them ahead of fast-followers, locking in that sustained advantage for now.\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eCloudTec\/Helion: Core performance differentiator.\u003c\/li\u003e\n\u003cli\u003eLightSpray™: Manufacturing process barrier.\u003c\/li\u003e\n\u003cli\u003eR\u0026amp;D Focus: Commitment to future tech advantage.\u003c\/li\u003e\n\u003cli\u003ePremium Pricing: Direct financial benefit realized.\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003cp\u003eFinance: draft the Q3 2025 R\u0026amp;D spend vs. sales analysis by Friday.\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eOn Holding AG (ONON) - VRIO Analysis: Premium Brand Equity and Cultural Resonance\n\u003c\/h2\u003e\n\u003cp\u003e\u003cstrong\u003ePremium Brand Equity and Cultural Resonance\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\n\u003ch\u003eValue\u003c\/h\u003e\n\u003c\/p\u003e\n\u003cp\u003eCommanding superior pricing, evidenced by a Q3 2025 gross profit margin of \u003cstrong\u003e65.7%\u003c\/strong\u003e, outpacing many peers.\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eMetric\u003c\/td\u003e\n\u003ctd\u003eQ3 2025 Actual\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eNet Sales (Reported)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 794.4 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eNet Sales (Constant Currency Growth)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e34.5%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eGross Profit Margin\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e65.7%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eAdjusted EBITDA Margin\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e22.6%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eNet Income\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 118.9 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003e\n\u003ch\u003eRarity\u003c\/h\u003e\n\u003c\/p\u003e\n\u003cp\u003eHigh. Achieving a record gross profit margin of \u003cstrong\u003e65.7%\u003c\/strong\u003e in Q3 2025 in the established sportswear market is uncommon.\u003c\/p\u003e\n\u003cp\u003e\n\u003ch\u003eImitability\u003c\/h\u003e\n\u003c\/p\u003e\n\u003cp\u003eHigh. Brand perception is built over time through consistent marketing and product quality, such as the brand maintaining its no-promotion policy ahead of the holiday season.\u003c\/p\u003e\n\u003cp\u003eAthlete validation includes Hellen Obiri wearing the Cloudboom Strike LS during her record-breaking victory at the New York Marathon.\u003c\/p\u003e\n\u003cp\u003e\n\u003ch\u003eOrganization\u003c\/h\u003e\n\u003c\/p\u003e\n\u003cp\u003eThe brand narrative is consistently reinforced through athlete partnerships and targeted marketing appealing to Gen Z consumers.\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eAPAC region constant currency net sales growth: \u003cstrong\u003e109.2%\u003c\/strong\u003e in Q3 2025.\u003c\/li\u003e\n\u003cli\u003eApparel net sales increase in Q3 2025: \u003cstrong\u003e86.9%\u003c\/strong\u003e (\u003cstrong\u003e100.2%\u003c\/strong\u003e constant currency).\u003c\/li\u003e\n\u003cli\u003eDTC channel net sales growth (constant currency) in Q3 2025: \u003cstrong\u003e37.5%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003ePartnerships with high-profile figures like Zendaya and Burna Boy strengthen appeal.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\n\u003ch\u003eCompetitive Advantage\u003c\/h\u003e\n\u003c\/p\u003e\n\u003cp\u003eSustained. This intangible asset underpins their ability to grow revenue by a projected \u003cstrong\u003e34%\u003c\/strong\u003e year-over-year on a constant currency basis for FY 2025 guidance.\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eOn Holding AG (ONON) - VRIO Analysis: Direct-to-Consumer (DTC) Channel Dominance\n\u003c\/h2\u003e\n\u003cp\u003eThe DTC channel is a core driver of On Holding AG's financial performance and margin profile.\u003c\/p\u003e\n\u003ch\u003eDirect-to-Consumer (DTC) Channel Dominance\u003c\/h\u003e\n\u003cp\u003e\u003cstrong\u003eValue:\u003c\/strong\u003e DTC sales growth of \u003cstrong\u003e47.2%\u003c\/strong\u003e in Q2 2025 (reported basis) and representing \u003cstrong\u003e41.1%\u003c\/strong\u003e of total net sales in Q2 2025 directly translates to higher gross margins, with the Q2 2025 Gross Profit Margin reaching \u003cstrong\u003e61.5%\u003c\/strong\u003e, up from \u003cstrong\u003e59.9%\u003c\/strong\u003e in Q2 2024.\u003c\/p\u003e\n\u003cp\u003eThe channel performance comparison for Q2 2025 is detailed below:\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eMetric\u003c\/td\u003e\n\u003ctd\u003eDTC Channel\u003c\/td\u003e\n\u003ctd\u003eWholesale Channel\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eNet Sales (Q2 2025 Reported)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 308.3 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 441.0 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eNet Sales Growth (Q2 2025 Reported)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e47.2%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e23.1%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eNet Sales Growth (Q2 2025 Constant Currency)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e54.3%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e28.8%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003e\u003cstrong\u003eRarity:\u003c\/strong\u003e Moderate. While many competitors are increasing DTC focus, On Holding AG’s execution at this scale, evidenced by the \u003cstrong\u003e47.2%\u003c\/strong\u003e reported DTC growth in Q2 2025, positions it ahead among premium entrants.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eImitability:\u003c\/strong\u003e Moderate. Competitors can establish e-commerce and retail presence, but replicating the integrated, high-touch DTC experience that supports a \u003cstrong\u003e61.5%\u003c\/strong\u003e gross margin requires significant operational and technological overhaul.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eOrganization:\u003c\/strong\u003e High. Management is actively executing a strategy prioritizing these higher-margin channels, demonstrated by raised guidance and operational focus:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eFull-year 2025 Net Sales growth guidance raised to at least \u003cstrong\u003e31%\u003c\/strong\u003e (constant currency).\u003c\/li\u003e\n\u003cli\u003eFull-year 2025 Gross Profit Margin guidance raised to the range of \u003cstrong\u003e60.5-61.0%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eAdjusted EBITDA Margin for Q2 2025 reached \u003cstrong\u003e18.2%\u003c\/strong\u003e, up 220 basis points year-over-year.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage:\u003c\/strong\u003e Temporary. The current strong margin differential and growth rate are sustainable only until major competitors achieve comparable DTC integration and scale, which will narrow the performance gap.\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eOn Holding AG (ONON) - VRIO Analysis: Superior Gross Margin Profile\n\u003c\/h2\u003e\n\u003cp\u003e\u003cstrong\u003eValue:\u003c\/strong\u003e The high gross margin, hitting \u003cstrong\u003e65.7%\u003c\/strong\u003e in Q3 2025, provides a significant financial buffer for marketing spend, R\u0026amp;D, and absorbing cost shocks like U.S. tariffs.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eRarity:\u003c\/strong\u003e High. Their TTM gross margin of \u003cstrong\u003e61.0%\u003c\/strong\u003e as of June 30, 2025, is notably higher than peers like Nike (\u003cstrong\u003e42.7%\u003c\/strong\u003e) in Q1 2025.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eImitability:\u003c\/strong\u003e Moderate. It’s imitable through premium pricing and supply chain discipline, but requires the brand equity to support the price.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eOrganization:\u003c\/strong\u003e High. The company demonstrates disciplined pricing and operational efficiency to maintain this margin, even raising FY 2025 guidance to around \u003cstrong\u003e62.5%\u003c\/strong\u003e.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage:\u003c\/strong\u003e Sustained. As long as the brand remains premium, this margin advantage should persist over less premium-focused rivals.\u003c\/p\u003e\n\u003cp\u003eThe superior gross margin profile is evidenced by the following financial metrics:\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eMetric\u003c\/td\u003e\n\u003ctd\u003eOn Holding AG (ONON) Value\u003c\/td\u003e\n\u003ctd\u003ePeer Value (Nike)\u003c\/td\u003e\n\u003ctd\u003ePeriod\/Context\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003ePeak Quarterly Gross Margin\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e65.7%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eN\/A\u003c\/td\u003e\n\u003ctd\u003eQ3 2025\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eTrailing Twelve Months (TTM) Gross Margin\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e61.0%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eN\/A\u003c\/td\u003e\n\u003ctd\u003eAs of June 30, 2025 (Guidance Range Context)\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003ePeer Quarterly Gross Margin\u003c\/td\u003e\n\u003ctd\u003eN\/A\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e42.7%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eQ1 2025\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eRaised Full-Year 2025 Guidance (Gross Margin)\u003c\/td\u003e\n\u003ctd\u003eAround \u003cstrong\u003e62.5%\u003c\/strong\u003e\n\u003c\/td\u003e\n\u003ctd\u003eN\/A\u003c\/td\u003e\n\u003ctd\u003ePost Q3 2025 Update\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003ePrior Full-Year 2025 Guidance (Gross Margin)\u003c\/td\u003e\n\u003ctd\u003e60.5-61.0%\u003c\/td\u003e\n\u003ctd\u003eN\/A\u003c\/td\u003e\n\u003ctd\u003ePre-Q3 2025 Update\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003eThe operational execution supporting this margin strength is reflected in channel and regional performance:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eNet sales through the \u003cstrong\u003eDirect-to-Consumer ('DTC') channel\u003c\/strong\u003e increased by \u003cstrong\u003e27.6%\u003c\/strong\u003e (\u003cstrong\u003e37.5%\u003c\/strong\u003e constant currency) to \u003cstrong\u003eCHF 314.7 million\u003c\/strong\u003e in Q3 2025.\u003c\/li\u003e\n\u003cli\u003eThe DTC share reached a new second-quarter high of \u003cstrong\u003e41.1%\u003c\/strong\u003e as of June 30, 2025.\u003c\/li\u003e\n\u003cli\u003eThe \u003cstrong\u003eAsia-Pacific (APAC)\u003c\/strong\u003e region delivered net sales growth of \u003cstrong\u003e94.2%\u003c\/strong\u003e in Q3 2025, or \u003cstrong\u003e109.2%\u003c\/strong\u003e constant currency.\u003c\/li\u003e\n\u003cli\u003eThe Q3 2025 gross profit margin of \u003cstrong\u003e65.7%\u003c\/strong\u003e included a one-off positive impact of approximately \u003cstrong\u003e200 basis points\u003c\/strong\u003e related to lower-than-anticipated freight and other costs.\u003c\/li\u003e\n\u003cli\u003eNet income margin for Q3 2025 expanded to \u003cstrong\u003e15.0%\u003c\/strong\u003e, up from \u003cstrong\u003e4.8%\u003c\/strong\u003e in the prior year period.\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003cbr\u003e\u003ch2\u003eOn Holding AG (ONON) - VRIO Analysis: Product Portfolio Diversification Beyond Running Footwear\n\u003c\/h2\u003e\n\u003cp\u003e\u003cstrong\u003eValue:\u003c\/strong\u003e Apparel sales grew \u003cstrong\u003e67.5%\u003c\/strong\u003e in the first half of 2025, reducing reliance on the core shoe business (which is \u003cstrong\u003e94%\u003c\/strong\u003e of sales) and increasing customer lifetime value through cross-selling.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eRarity:\u003c\/strong\u003e Moderate. Expanding into apparel and accessories is common, but On Holding AG is achieving significant growth rates in these adjacencies quickly.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eImitability:\u003c\/strong\u003e Low. Building a credible apparel line in performance sports requires a different set of design and marketing expertise than footwear.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eOrganization:\u003c\/strong\u003e High. The company has clear long-term targets for apparel share (aiming for \u003cstrong\u003e10%+\u003c\/strong\u003e by \u003cstrong\u003e2026\u003c\/strong\u003e), showing organizational focus.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage:\u003c\/strong\u003e Temporary. This is a growth driver that will become standard as the company matures, but it offers a current edge.\u003c\/p\u003e\n\u003cp\u003eThe diversification efforts are evidenced by the following financial metrics:\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eMetric\u003c\/td\u003e\n\u003ctd\u003ePeriod Ended September 30, 2025 (Q3)\u003c\/td\u003e\n\u003ctd\u003ePeriod Ended June 30, 2025 (H1)\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eTotal Net Sales (Reported)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 794.4 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 1,475.8 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eNet Sales from Shoes\u003c\/td\u003e\n\u003ctd\u003eNot explicitly stated for Q3 2025, but footwear was \u003cstrong\u003e\u0026gt;94%\u003c\/strong\u003e of total turnover in H1 2024\u003c\/td\u003e\n\u003ctd\u003e\n\u003cstrong\u003eMore than 94%\u003c\/strong\u003e of total turnover\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eNet Sales from Apparel (Reported)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 124.9 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eNot explicitly stated\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eNet Sales from Accessories (Reported)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 28.2 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eNot explicitly stated\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003eThe rapid growth in non-footwear categories highlights the momentum:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eApparel net sales increased by \u003cstrong\u003e86.9%\u003c\/strong\u003e year-over-year in the third quarter of 2025.\u003c\/li\u003e\n\u003cli\u003eApparel net sales increased by \u003cstrong\u003e91.0%\u003c\/strong\u003e on a constant currency basis for the three-month period ended March 31, 2025 (Q1 2025).\u003c\/li\u003e\n\u003cli\u003eAccessories net sales increased by \u003cstrong\u003e127.4%\u003c\/strong\u003e on a constant currency basis for the three-month period ended September 30, 2025 (Q3 2025).\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003cbr\u003e\u003ch2\u003eOn Holding AG (ONON) - VRIO Analysis: Commitment to Supply Chain Responsibility and Transparency\n\u003c\/h2\u003e\n\u003cp\u003e\u003cstrong\u003eValue\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eProactive steps like the Blueprint for Responsible Manufacturing and living wage initiatives build trust with increasingly conscious investors and consumers.\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eThe Blueprint for Responsible Manufacturing covers ethical labor practices, material sourcing, and production processes for production partners.\u003c\/li\u003e\n\u003cli\u003eThe company is developing strategies with suppliers for wage transparency and fair compensation initiatives as part of its living wage commitment.\u003c\/li\u003e\n\u003cli\u003eThe company's sustainability impact information includes an unscaled total SDG Contribution of \u003cstrong\u003e61.2%\u003c\/strong\u003e across the 17 goals.\u003c\/li\u003e\n\u003cli\u003eThe company's production office serving as the hub for supply chain sustainability activities is located in \u003cstrong\u003eVietnam\u003c\/strong\u003e.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\u003cstrong\u003eRarity\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eModerate. While many talk about ESG, On Holding AG has specific, documented frameworks and monitoring programs for its partners.\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eThe company utilizes a Workplace Standard Monitoring Program to evaluate partners against responsible manufacturing standards for social, environmental, and ethical business impact.\u003c\/li\u003e\n\u003cli\u003eIndustry context suggests that less than \u003cstrong\u003e4%\u003c\/strong\u003e of companies pay their direct employees a living wage, and under \u003cstrong\u003e1%\u003c\/strong\u003e have set a target to do so, indicating specific commitments like On's are relatively rare.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\u003cstrong\u003eImitability\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eHigh. Implementing deep, traceable, and responsible manufacturing standards across a global third-party network is complex and slow to replicate.\u003c\/p\u003e\n\u003cp\u003eThe requirement for partners to adhere to the On Supplier Code of Conduct and the continuous updating of the Blueprint for Responsible Manufacturing document represent ongoing, complex implementation efforts.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eOrganization\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eModerate. They have the documented policies, but the search results also note reliance on a limited group of suppliers, which is a risk.\u003c\/p\u003e\n\u003cp\u003eTo mitigate supplier concentration risks, On Holding AG seeks out alternative suppliers and develops contingency plans, specifically using at least \u003cstrong\u003etwo suppliers\u003c\/strong\u003e for key shoe models.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eTemporary. This builds brand goodwill, but the underlying supplier concentration risk tempers the advantage unless mitigated.\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eVRIO Component\u003c\/td\u003e\n\u003ctd\u003eAssessment\u003c\/td\u003e\n\u003ctd\u003eSupporting Data\/Context\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eValue\u003c\/td\u003e\n\u003ctd\u003eYes\u003c\/td\u003e\n\u003ctd\u003eBlueprint for Responsible Manufacturing; Living wage initiatives; SDG Contribution total: \u003cstrong\u003e61.2%\u003c\/strong\u003e (unscaled).\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eRarity\u003c\/td\u003e\n\u003ctd\u003eModerate\u003c\/td\u003e\n\u003ctd\u003eSpecific monitoring programs (Workplace Standard Monitoring Program); Industry comparison shows few companies with living wage targets.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eImitability\u003c\/td\u003e\n\u003ctd\u003eHigh\u003c\/td\u003e\n\u003ctd\u003eComplexity of implementing deep, traceable standards across a global third-party network.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eOrganization\u003c\/td\u003e\n\u003ctd\u003eModerate\u003c\/td\u003e\n\u003ctd\u003ePolicies documented; Risk mitigation in place (multiple suppliers for key models), but concentration risk remains a factor.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\n\u003cbr\u003e\u003ch2\u003eOn Holding AG (ONON) - VRIO Analysis: Swiss Engineering and Design Origin\n\u003c\/h2\u003e\n\n\u003cp\u003e\n\u003ch\u003eValue\u003c\/h\u003e\n\u003c\/p\u003e\n\u003cp\u003e\nThe 'engineered in Switzerland' tag provides immediate credibility and a quality halo, justifying the premium positioning in the global market. Footwear is priced between $150 and $230. The company achieved a Gross Profit Margin of 65.7% in Q3 2025, supporting premium positioning.\n\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eMetric\u003c\/td\u003e\n\u003ctd\u003eOn Holding AG (Q1 2025\/Latest)\u003c\/td\u003e\n\u003ctd\u003eNike (Projected 2025)\u003c\/td\u003e\n\u003ctd\u003eAdidas (Projected 2025)\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eGross Margin\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e59.9%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eProjected at \u003cstrong\u003e43%\u003c\/strong\u003e\n\u003c\/td\u003e\n\u003ctd\u003eProjected near \u003cstrong\u003e40%\u003c\/strong\u003e\n\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eDTC Revenue Share\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e38.1%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e35%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e29%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\n\u003cp\u003e\n\u003ch\u003eRarity\u003c\/h\u003e\n\u003c\/p\u003e\n\u003cp\u003e\nHigh. Few major global sportswear brands maintain their primary design\/engineering hub in a high-cost, high-reputation location like Switzerland. On Holding AG's headquarters is in Zürich, Switzerland. On Labs, the global headquarters and center for product development, design, and innovation, is located in Zürich West.\n\u003c\/p\u003e\n\n\u003cp\u003e\n\u003ch\u003eImitability\u003c\/h\u003e\n\u003c\/p\u003e\n\u003cp\u003e\nHigh. You cannot easily move or replicate the institutional knowledge and design culture associated with their Zurich base. The On Labs campus spans 15,000 sqm.\n\u003c\/p\u003e\n\n\u003cp\u003e\n\u003ch\u003eOrganization\u003c\/h\u003e\n\u003c\/p\u003e\n\u003cp\u003e\nHigh. This origin story is central to their marketing and product development process, ensuring it’s fully exploited.\n\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eThe founders remain actively involved, with Olivier Bernhard focusing on product and innovation.\u003c\/li\u003e\n\u003cli\u003eOn Labs represents the center of product development, design and innovation.\u003c\/li\u003e\n\u003cli\u003eIn 2019, the company held \u003cstrong\u003e40%\u003c\/strong\u003e of the running shoe market in Switzerland.\u003c\/li\u003e\n\u003cli\u003eAs of 2020, On products were sold in 6,000 retailers in 55 countries.\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003cp\u003e\n\u003ch\u003eCompetitive Advantage\u003c\/h\u003e\n\u003c\/p\u003e\n\u003cp\u003e\nSustained. This geographical identity is deeply embedded and acts as a permanent differentiator against U.S. or Asian-centric competitors.\n\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eFinancial Metric (TTM)\u003c\/td\u003e\n\u003ctd\u003eAmount\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eRevenue\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e$3.61 billion\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eMarket Capitalization\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e$15.68 billion\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eGross Margin\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e62.40%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eNet Income\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e$281.17 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\n\u003cbr\u003e\u003ch2\u003eOn Holding AG (ONON) - VRIO Analysis: Rapid International Market Expansion, Especially APAC\n\u003c\/h2\u003e\n\u003cp\u003e\nValue: Revenue in Asia-Pacific more than doubled, surging \u003cstrong\u003e101.3%\u003c\/strong\u003e year-over-year in Q2 2025 on a reported basis. Net sales for the entire company reached \u003cstrong\u003eCHF 749.2 million\u003c\/strong\u003e in Q2 2025, representing a \u003cstrong\u003e32.0%\u003c\/strong\u003e increase year-over-year. Constant currency growth for APAC was even stronger at \u003cstrong\u003e110.9%\u003c\/strong\u003e.\n\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eMetric\u003c\/td\u003e\n\u003ctd\u003eQ2 2025 Value\u003c\/td\u003e\n\u003ctd\u003eYear-over-Year Change\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eTotal Net Sales\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 749.2 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e32.0%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eGross Profit Margin\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e61.5%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eUp 160 basis points\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eAPAC Net Sales Growth (Reported)\u003c\/td\u003e\n\u003ctd\u003eN\/A\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e101.3%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eAmericas Net Sales Growth (Reported)\u003c\/td\u003e\n\u003ctd\u003eN\/A\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e16.8%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eDirect-to-Consumer (DTC) Sales\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 308.3 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e47.2%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003e\nThe DTC channel represented \u003cstrong\u003e41.1%\u003c\/strong\u003e of total net sales in Q2 2025.\n\u003c\/p\u003e\n\u003cp\u003e\nRarity: Moderate. Achieving hyper-growth in a new, complex market like APAC while maintaining premium positioning is difficult. The reported APAC growth of \u003cstrong\u003e101.3%\u003c\/strong\u003e in Q2 2025 is a rare feat in the established sportswear industry.\n\u003c\/p\u003e\n\u003cp\u003e\nImitability: Moderate. Competitors can enter the market, but On Holding AG’s early momentum and brand fit in the region are hard to match post-facto. The company's gross profit margin expanded to \u003cstrong\u003e61.5%\u003c\/strong\u003e, indicating strong pricing power that is difficult for new entrants to replicate immediately.\n\u003c\/p\u003e\n\u003cp\u003e\nOrganization: High. The company is clearly prioritizing and executing on global expansion, as shown by the strong regional results. The company raised its full-year guidance for net sales growth to at least \u003cstrong\u003e31%\u003c\/strong\u003e (constant currency).\n\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eAdjusted EBITDA Margin for Q2 2025 was \u003cstrong\u003e18.2%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eApparel Sales grew by \u003cstrong\u003e75.5%\u003c\/strong\u003e at constant exchange rates in Q2 2025.\u003c\/li\u003e\n\u003cli\u003eThe company operates \u003cstrong\u003e54\u003c\/strong\u003e On stores worldwide as of Q2 2025.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\nCompetitive Advantage: Temporary. This is a function of market timing and execution; the advantage will fade as the region matures. The company's adjusted diluted EPS was \u003cstrong\u003e-CHF 0.09\u003c\/strong\u003e in Q2 2025, showing profitability challenges despite top-line growth.\n\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eOn Holding AG (ONON) - VRIO Analysis: High-Profile Athlete and Celebrity Endorsement Network\n\u003c\/h2\u003e\n\u003cp\u003e\nThe High-Profile Athlete and Celebrity Endorsement Network is a core component of On Holding AG's premium brand strategy.\n\u003c\/p\u003e\n\u003ch\u003eValue\u003c\/h\u003e\n\u003cp\u003e\nPartnerships with figures like Roger Federer and Zendaya drive massive brand visibility and create hype for specific product launches, directly impacting sales momentum. The collaboration with Zendaya and LOEWE propelled On Holding AG's apparel business to a 75.5% growth rate on a constant currency basis in Q2 2025. Global brand awareness surged in the U.S. (doubled) and Paris (tripled) in Q3 2024, fueled by the Paris Olympics presence and high-profile partnerships.\n\u003c\/p\u003e\n\u003ch\u003eRarity\u003c\/h\u003e\n\u003cp\u003e\nModerate. Top-tier athletes are exclusive, but On Holding AG has secured key, culturally relevant figures that resonate across performance and lifestyle segments. The company is backed by tennis great Roger Federer.\n\u003c\/p\u003e\n\u003ch\u003eImitability\u003c\/h\u003e\n\u003cp\u003e\nModerate. Securing top-tier talent is expensive and competitive, but another brand could theoretically sign a similar roster over time. The success of co-created, high-end products, such as the LOEWE collaboration on the Cloudtilt which retailed at \u003cstrong\u003e$590\u003c\/strong\u003e and sold out almost entirely within days, indicates a high barrier to entry for replicating the premium execution. In 2023, apparel sales represented only about 4% of ON's total sales, indicating significant room for growth that these partnerships aim to capture.\n\u003c\/p\u003e\n\u003cp\u003e\nThe impact of these key endorsements can be quantified as follows:\n\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eEndorser\/Partner\u003c\/td\u003e\n\u003ctd\u003eAssociated Metric\/Event\u003c\/td\u003e\n\u003ctd\u003eReported Figure\/Value\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eZendaya\/LOEWE\u003c\/td\u003e\n\u003ctd\u003eApparel Growth (Q2 2025, constant currency)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e75.5%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eZendaya\u003c\/td\u003e\n\u003ctd\u003eInstagram Followers\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e184 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eRoger Federer\u003c\/td\u003e\n\u003ctd\u003eCompany Backing Status\u003c\/td\u003e\n\u003ctd\u003ePart-owned\/Championed\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eQ3 2024 Brand Awareness (US)\u003c\/td\u003e\n\u003ctd\u003eGrowth vs. Prior Period\u003c\/td\u003e\n\u003ctd\u003eDoubled\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eQ3 2024 Net Sales\u003c\/td\u003e\n\u003ctd\u003eReported Revenue (Q3 2024)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCHF 635.8 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003ch\u003eCompetitive Advantage\u003c\/h\u003e\n\u003cp\u003e\nTemporary. The value is high when a launch is imminent (like Zendaya’s footwear), but the contracts and cultural relevance have expiration dates. The momentum from these moments contributed to On Holding raising its full-year 2024 net sales growth outlook to at least 32% on a constant currency basis, implying reported net sales of at least \u003cstrong\u003eCHF 2.29 billion\u003c\/strong\u003e. Q3 2024 net sales increased by 32.3% year-over-year.\n\u003c\/p\u003e\n\u003ch\u003eOrganization\u003c\/h\u003e\n\u003cp\u003e\nHigh. The company effectively integrates these partnerships into its marketing calendar, as seen with the Olympic presence and the multi-year deal with Zendaya.\n\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003e\nZendaya is signed to a multi-year deal emphasizing movement and storytelling.\n\u003c\/li\u003e\n\u003cli\u003e\nThe company's strategy involves scaling existing and new audiences globally with 'large brand moments' in 2024.\n\u003c\/li\u003e\n\u003cli\u003e\nThe company achieved a gross profit margin of 60.6% in Q3 2024.\n\u003c\/li\u003e\n\u003c\/ul\u003e","brand":"dcf.fm","offers":[{"title":"Default Title","offer_id":45516224037013,"sku":"onon-vrio-analysis","price":7.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0630\/5189\/0837\/files\/onon-vrio-analysis.png?v=1740201906","url":"https:\/\/dcf-model.com\/fr\/products\/onon-vrio-analysis","provider":"AI-Powered Discounted Cash Flow Model Templates","version":"1.0","type":"link"}