Abstract

The case explores how On Holding AG (On), a Swiss based sportswear company, challenged global sportswear brands in the niche running shoe category by doubling down on product innovation, premium positioning, design excellence, and sustainability play. Co-founded in 2010 by Olivier Bernhard, On’s proprietary technology that was patented had revolutionized the running shoe segment. These included the CloudTec, CloudTec Phase, Helion Superfoam, Speedboard, and LightSpray technologies. On’s Cyclon subscription model, a bold exploration toward circular design, had shifted consumers from one-time purchases to value-driven subscriptions, nurturing loyalty through convenience and sustainability. Between 2018 and 2024, the company grew by 70% to 80% annually in net sales and emerged as the world’s fastest-growing shoe brand. On’s momentous growth did not come without its own challenges. These included the pressure to scale globally, having to continue to innovate while maintaining quality standards, growing competition, prioritizing sustainability, and price sensitivity. Several industry experts wondered whether On could continue to maintain its culture of innovation and premium identity in the highly competitive global sportswear market where Nike and Adidas still accounted for a combined 58% of global market share as of 2025.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Identify the key factors driving success in the running shoe category.
• Understand the role of product innovation in driving On’s success and shaping its competitive position in the global market
• Analyze how On integrated sustainability into its business model
• Identify the challenges faced by an emerging sportswear brand such as On and explore strategies that the company can adopt to overcome them.

Keywords

On shoes; running shoe; challenger brand; innovation; product development; circular design, sustainability; competitive strategy; CloudTec, speedboard; Cyclon subscription model; business model; sportswear brand; brand strategy; Corporate Social Responsibility,Olivier Bernhard; nike; Adidas; Caspar Coppetti; CloudTec; Helion Superfoam; Speedboard; LightSpray