Under Armour has experienced strong growth and success in the performance apparel industry by creating a new market segment and gaining first-mover advantage. However, the company faces challenges from increasing competition and costs. Key opportunities for Under Armour include the continued growth of the performance apparel industry globally and increasing participation in sports. The greatest threats are rising raw material costs and inflation in China, where much of the company's manufacturing occurs. Overall, Under Armour must focus on innovation to protect its market share from larger competitors as the industry matures.
This document analyzes Under Armour and provides a valuation. It summarizes Under Armour's history, financial performance, competitive landscape, and intrinsic valuation using DCF, P/E, and EV/EBITDA multiples. The analysis values Under Armour at $13 per share, believing the current $25 share price overvalues the company given slowing growth prospects and risks from cheaper competitors.
Assignment%20#1 under armour pest industry analysisBrian Teufel
Under Armour has used a blue ocean strategy to create the performance apparel market. It has gained a first-mover advantage and 70% of the US market share. The performance apparel industry is growing rapidly at 15% annually and is expected to reach $7.6 billion by 2014. Under Armour faces high competition from Nike and Adidas but continues to innovate and focus on enhancing performance through apparel.
Strategic Management in a Global Context: Under ArmourRonantonnoel
Under Armour operates in the competitive performance apparel industry. It focuses on design, marketing, and product innovation while outsourcing manufacturing. Strengths include its powerful brand and superior product performance. Weaknesses include reliance on key leaders and limited protection of fabrics and designs. Continued innovation will be needed to maintain advantages. However, growth may require entering new markets like overseas and women which it currently lacks capabilities for. Acquisition may allow expanding into these markets while maintaining the brand.
This document provides an analysis of Under Armour, including:
1. A brief history of Under Armour and its founder Kevin Plank.
2. A literature review covering SWOT analysis, BCG matrix, five competitive forces, corporate strategies, and business level strategies.
3. An analysis of Under Armour's SWOT profile, BCG matrix, competitive forces, strategies, and organizational structure.
4. Recommendations regarding strengthening opportunities, addressing weaknesses, and guarding against threats through corporate level strategies, business level strategies, and organizational design changes.
Assignment%20#3 under armour internal and swot analysisBrian Teufel
Under Armour has experienced increasing annual sales and net income since 2006, with around 80% of net income coming from performance apparel (PA). While footwear sales decreased in 2010, PA and accessories sales increased. International sales are rising but remain below 10% of total sales. Under Armour seeks to compete more broadly with Nike and Adidas beyond PA. Key strengths are innovation and brand equity.
Under armour case analysis by Njinyah CiroCiro Njinyah
This document provides an analysis of Under Armour's current situation and strategies. Some key points:
1. Under Armour has experienced strong financial growth in recent years, with revenue increasing over 25% annually on average. However, gross margins have remained around 48% due to higher input costs.
2. External factors driving growth in the industry include a rising global youth population participating in sports and growing interest in fitness. Competitive pressures come from large rivals like Nike and Adidas, as well as potential new entrants.
3. Internally, Under Armour has succeeded through innovation in performance apparel and gear, as well as marketing. Maintaining this edge in technology and brand awareness will be
This document provides an analysis of Under Armour, including its history, competitors, external environment using PEST analysis, Porter's Five Forces analysis, internal strengths and weaknesses through SWOT analysis, resources, core competencies, value chain, and corporate social responsibility efforts. Key points are that Under Armour has experienced strong growth but still lags competitors in international sales and relies heavily on third-party suppliers and retailers. It aims to differentiate through innovation and marketing.
Assignment%20#2 under armour competitor and market analysisBrian Teufel
This document analyzes Under Armour's competitors and the performance apparel market. It identifies Nike and Adidas as Under Armour's primary competitors. It shows the performance apparel industry has grown rapidly over the past four years at a rate of over 15% annually, and is expected to continue growing. Key trends include the positive impact of social media on sales and marketing, and growth being fueled by Asia, North America, and Europe.
This document analyzes Under Armour and provides a valuation. It summarizes Under Armour's history, financial performance, competitive landscape, and intrinsic valuation using DCF, P/E, and EV/EBITDA multiples. The analysis values Under Armour at $13 per share, believing the current $25 share price overvalues the company given slowing growth prospects and risks from cheaper competitors.
Assignment%20#1 under armour pest industry analysisBrian Teufel
Under Armour has used a blue ocean strategy to create the performance apparel market. It has gained a first-mover advantage and 70% of the US market share. The performance apparel industry is growing rapidly at 15% annually and is expected to reach $7.6 billion by 2014. Under Armour faces high competition from Nike and Adidas but continues to innovate and focus on enhancing performance through apparel.
Strategic Management in a Global Context: Under ArmourRonantonnoel
Under Armour operates in the competitive performance apparel industry. It focuses on design, marketing, and product innovation while outsourcing manufacturing. Strengths include its powerful brand and superior product performance. Weaknesses include reliance on key leaders and limited protection of fabrics and designs. Continued innovation will be needed to maintain advantages. However, growth may require entering new markets like overseas and women which it currently lacks capabilities for. Acquisition may allow expanding into these markets while maintaining the brand.
This document provides an analysis of Under Armour, including:
1. A brief history of Under Armour and its founder Kevin Plank.
2. A literature review covering SWOT analysis, BCG matrix, five competitive forces, corporate strategies, and business level strategies.
3. An analysis of Under Armour's SWOT profile, BCG matrix, competitive forces, strategies, and organizational structure.
4. Recommendations regarding strengthening opportunities, addressing weaknesses, and guarding against threats through corporate level strategies, business level strategies, and organizational design changes.
Assignment%20#3 under armour internal and swot analysisBrian Teufel
Under Armour has experienced increasing annual sales and net income since 2006, with around 80% of net income coming from performance apparel (PA). While footwear sales decreased in 2010, PA and accessories sales increased. International sales are rising but remain below 10% of total sales. Under Armour seeks to compete more broadly with Nike and Adidas beyond PA. Key strengths are innovation and brand equity.
Under armour case analysis by Njinyah CiroCiro Njinyah
This document provides an analysis of Under Armour's current situation and strategies. Some key points:
1. Under Armour has experienced strong financial growth in recent years, with revenue increasing over 25% annually on average. However, gross margins have remained around 48% due to higher input costs.
2. External factors driving growth in the industry include a rising global youth population participating in sports and growing interest in fitness. Competitive pressures come from large rivals like Nike and Adidas, as well as potential new entrants.
3. Internally, Under Armour has succeeded through innovation in performance apparel and gear, as well as marketing. Maintaining this edge in technology and brand awareness will be
This document provides an analysis of Under Armour, including its history, competitors, external environment using PEST analysis, Porter's Five Forces analysis, internal strengths and weaknesses through SWOT analysis, resources, core competencies, value chain, and corporate social responsibility efforts. Key points are that Under Armour has experienced strong growth but still lags competitors in international sales and relies heavily on third-party suppliers and retailers. It aims to differentiate through innovation and marketing.
Assignment%20#2 under armour competitor and market analysisBrian Teufel
This document analyzes Under Armour's competitors and the performance apparel market. It identifies Nike and Adidas as Under Armour's primary competitors. It shows the performance apparel industry has grown rapidly over the past four years at a rate of over 15% annually, and is expected to continue growing. Key trends include the positive impact of social media on sales and marketing, and growth being fueled by Asia, North America, and Europe.
The athletic apparel industry is worth approximately $168 billion worldwide in 2017 and is estimated to reach $231.7 billion by 2024. Major players like Nike and Adidas dominate the market but new entrants are expected to join. The industry is facing trends like activewear lines from fashion retailers only accounting for 10% of the market. The North American sports apparel market is expected to grow at a compound annual growth rate of 5.9% from 2016-2022.
Under Armour conducts an internal analysis to identify its strengths and weaknesses. Key strengths include its focus on innovation through products like HEATGEAR and COLDGEAR, its growing connected fitness platform, and strong brand recognition from top athlete endorsements. However, weaknesses include its lack of global market penetration and lack of patents. Financially, Under Armour has experienced high revenue growth but also high debt levels, leading to a recent decline in operating margin and negative free cash flow. To further grow, Under Armour must leverage its strengths, address its weaknesses in international expansion and patents, and get its finances under control by paying down debt.
Nike is an athletic shoe and apparel manufacturer that has seen revenue plateau around $9 billion and declining net income and US market share. The document discusses Nike's business issues related to supply chain management and the strong US dollar's adverse effects. It recommends Nike develop more mid-price products to boost revenue, expand its apparel line, and cut expenses. Analyst recommendations for investing in Nike are mixed, with some advising to invest and others advising against it. An analysis calculates Nike may be undervalued if its discount rate is below 11.17%.
Under Armour is a leader in athletic apparel known for its passion for design and relentless pursuit of innovation. The document discusses Under Armour's mission, vision, industry position, strengths, weaknesses, opportunities, threats, strategic history, challenges, and recommendations. Key challenges include developing new products, appealing more to women customers, and becoming a more recognized international brand.
Hitting The Wall Nike And International Labor Practicesjoelnshisso
Nike adopted a strategy of outsourcing all manufacturing to low-cost countries to reduce costs. While this saved on wages, it led to issues with working conditions and ethics. Nike failed to properly manage its outsourcing relationships and communicate its values to contract manufacturers. When reports of unethical practices surfaced, the company was unprepared and its reputation suffered. Moving forward, Nike learned to be more transparent and conduct marketing audits to improve social responsibility and regain consumer trust.
This document summarizes a strategic analysis of Nike. It outlines Nike's vision, mission, strengths, weaknesses, opportunities, threats and strategies. Key points include: Nike's goal is to be the largest seller of athletic footwear and apparel; it has a strong brand but faces issues like labor exploitation; growth is coming from women consumers moving to fashion-sportswear; recommendations include more flexible endorser contracts focusing on lifestyle.
Under Armour is reviewing for a new media agency, according to people with knowledge of the matter.
Omnicom Media Group's Optimum Sports has been working on the business since 2011. Representatives from Optimum Sports and Under Armour were not immediately available for comment. Droga5 continues to serve as the brand's creative agency partner.
Last year, the agency captured the intense, rigorous and solitary training rituals of Olympic gold-medalist swimmer Michael Phelps in an Under Armour spot that took home the Grand Prix in the Film Craft Category at the 2016 Cannes Lions International Festival of Creativity.
Under Armour spent $20.6 million on measured media in the U.S. in 2015, according to Ad Age's Datacenter, and about $10.1 million on measured media in the U.S. from January to November of last year.
Under Armour was founded in 1996 by Kevin Plank to produce athletic clothing that keeps athletes cool, dry, and light. It initially targeted professional athletes and serious fitness enthusiasts with tight-fitting moisture-wicking shirts. Now, Under Armour produces a full line of performance apparel and footwear for various sports. It focuses on differentiating its products through special fabrics for hot, cold, or variable temperatures. Under Armour has grown significantly and sponsors many sports teams internationally through various retail channels and promotional efforts.
This document provides a case study on Gillette's operations in Indonesia. It discusses Gillette's history of entering the Indonesian market in 1971 and establishing a manufacturing plant. By 1995, Gillette had captured 48% of the razor blade market in Indonesia. The document performs a SWOT analysis of Gillette Indonesia and identifies opportunities to increase razor blade demand through improved marketing and promotion strategies tailored to Indonesian culture.
An American multinational corporation, Nike, Inc. is one of the most leading brands which designs, develops and sells footwear, apparel, accessories, equipment and other services worldwide.
For more details:- https://myassignmenthelp.com/case-study/nike-swot-pest-analysis-case-study.html
Titleist golf balls hold close to half of the golf ball market share. This document provides an analysis of the golf ball industry and Titleist's position within it. It summarizes that Titleist has five golf ball models targeted at different types of golfers, with the Pro V1 and Pro V1x being the most popular. It also notes that while the golf ball industry has matured, Titleist has maintained high profitability through strong branding, product innovation, and professional sponsorships.
GIC x Nanyang Capital Stock Pitch Challenge 2018 - Alpha CapitalAndy Chang
Under Armour has struggled with ineffective inventory management, which has weighed down gross margins as the company has had to sell inventory at a discount. The company has also been unable to capitalize on the fast-growing athleisure market due to its late entry and weak marketing strategies that are not targeted towards the athleisure consumer. Additionally, the company's restructuring plans are viewed as unlikely to generate sufficient savings, and its bullish Asia-Pacific growth projections are not expected to materialize in the short to medium term.
Hitting the Wall: Nike and International Labor PracticesErhan Sozen
Nike pursued a business strategy of outsourcing manufacturing to low-cost countries to reduce costs and increase profits. However, this exposed the company to criticism over poor labor practices in foreign factories. Nike was accused of exploiting workers through low wages and unhealthy conditions. While Nike initially denied responsibility, increasing public pressure and protests led the company to implement reforms like establishing a code of conduct, increasing oversight of factories, and joining industry partnerships and organizations to improve labor standards. However, critics argued Nike still failed to adequately address the key issue of low wages for workers. The document examines Nike's failures to uphold corporate social responsibility in its early business practices and slow response to addressing labor concerns.
My group created an Integrated marketing strategy plan for Nike athletic shoes, based on the data collected from Nike 10K report, Statista, IBISWorld, and etc. in 2018. This slides include but not limited to industry analysis, market analysis, competition analysis, business analysis, recommendations for 2019.
This study analyzed the strategies used by Nike between 1990-2000 to deal with rising criticism. It used Porter's strategic forces analysis and five forces framework to understand Nike's opportunities and threats. The findings showed Nike tried to gain cost leadership by moving production to Asia while also positioning itself as offering differentiated products. Nike employed environmental strategies to address criticism and Whittington's systematic school aligned with its strategic moves.
SWOT analysis helps to assess the present market scenario of a company. Here, we will take a look at Gillette, one of the leading firms in the world specializing in safety razors, and other personal care products. Furthermore, we will closely observe the internal and external strategy factors of Gillette.
Callaway Golf has consistently turned a profit through their diverse product lines that appeal to different types of golfers. An analysis identified opportunities in online shopping and growing female participation in golf (Hennessey, 2019). While well positioned, threats include intense competition and lack of marketing star staff (Corporate Profiles, 2017). To improve, Callaway could better utilize online platforms and target growing demographics like women.
Assignment%20#3 under armour internal and swot analysisBrian Teufel
Under Armour has experienced increasing annual sales and net income since 2006, with around 80% of net income coming from performance apparel (PA). While footwear sales decreased in 2010, PA and accessories sales increased. International sales are rising but remain below 10% of total sales. Under Armour aims to compete more broadly with Nike and Adidas beyond PA. Key strengths are innovation and brand equity.
Nike is launching a new line of compressed apparel called Proton. The apparel is manufactured using high temperature and pressure to compress cotton items by 90%, reducing their size by 10x when compressed. Nike sees opportunities to expand into new markets by marketing the apparel for travel, gifts, and everyday wear beyond just sports. Market research shows demand for branded apparel is growing in India, especially among high income travelers who could benefit from compressed clothing that saves space. Nike plans to target these consumers as well as businesses through various promotional campaigns.
Athos is a startup that produces a wearable suit with electromyography (EMG) sensors to monitor muscle activity during workouts. The suit sends biometric data to an app to provide workout feedback and help users improve. While Athos currently has a competitive advantage over rivals due to its EMG technology, it faces challenges in scaling production, increasing adoption, and maintaining its lead as competitors emerge. Within the next year, Athos must focus on refining its product, educating consumers, and deepening partnerships with athletes.
The athletic apparel industry is worth approximately $168 billion worldwide in 2017 and is estimated to reach $231.7 billion by 2024. Major players like Nike and Adidas dominate the market but new entrants are expected to join. The industry is facing trends like activewear lines from fashion retailers only accounting for 10% of the market. The North American sports apparel market is expected to grow at a compound annual growth rate of 5.9% from 2016-2022.
Under Armour conducts an internal analysis to identify its strengths and weaknesses. Key strengths include its focus on innovation through products like HEATGEAR and COLDGEAR, its growing connected fitness platform, and strong brand recognition from top athlete endorsements. However, weaknesses include its lack of global market penetration and lack of patents. Financially, Under Armour has experienced high revenue growth but also high debt levels, leading to a recent decline in operating margin and negative free cash flow. To further grow, Under Armour must leverage its strengths, address its weaknesses in international expansion and patents, and get its finances under control by paying down debt.
Nike is an athletic shoe and apparel manufacturer that has seen revenue plateau around $9 billion and declining net income and US market share. The document discusses Nike's business issues related to supply chain management and the strong US dollar's adverse effects. It recommends Nike develop more mid-price products to boost revenue, expand its apparel line, and cut expenses. Analyst recommendations for investing in Nike are mixed, with some advising to invest and others advising against it. An analysis calculates Nike may be undervalued if its discount rate is below 11.17%.
Under Armour is a leader in athletic apparel known for its passion for design and relentless pursuit of innovation. The document discusses Under Armour's mission, vision, industry position, strengths, weaknesses, opportunities, threats, strategic history, challenges, and recommendations. Key challenges include developing new products, appealing more to women customers, and becoming a more recognized international brand.
Hitting The Wall Nike And International Labor Practicesjoelnshisso
Nike adopted a strategy of outsourcing all manufacturing to low-cost countries to reduce costs. While this saved on wages, it led to issues with working conditions and ethics. Nike failed to properly manage its outsourcing relationships and communicate its values to contract manufacturers. When reports of unethical practices surfaced, the company was unprepared and its reputation suffered. Moving forward, Nike learned to be more transparent and conduct marketing audits to improve social responsibility and regain consumer trust.
This document summarizes a strategic analysis of Nike. It outlines Nike's vision, mission, strengths, weaknesses, opportunities, threats and strategies. Key points include: Nike's goal is to be the largest seller of athletic footwear and apparel; it has a strong brand but faces issues like labor exploitation; growth is coming from women consumers moving to fashion-sportswear; recommendations include more flexible endorser contracts focusing on lifestyle.
Under Armour is reviewing for a new media agency, according to people with knowledge of the matter.
Omnicom Media Group's Optimum Sports has been working on the business since 2011. Representatives from Optimum Sports and Under Armour were not immediately available for comment. Droga5 continues to serve as the brand's creative agency partner.
Last year, the agency captured the intense, rigorous and solitary training rituals of Olympic gold-medalist swimmer Michael Phelps in an Under Armour spot that took home the Grand Prix in the Film Craft Category at the 2016 Cannes Lions International Festival of Creativity.
Under Armour spent $20.6 million on measured media in the U.S. in 2015, according to Ad Age's Datacenter, and about $10.1 million on measured media in the U.S. from January to November of last year.
Under Armour was founded in 1996 by Kevin Plank to produce athletic clothing that keeps athletes cool, dry, and light. It initially targeted professional athletes and serious fitness enthusiasts with tight-fitting moisture-wicking shirts. Now, Under Armour produces a full line of performance apparel and footwear for various sports. It focuses on differentiating its products through special fabrics for hot, cold, or variable temperatures. Under Armour has grown significantly and sponsors many sports teams internationally through various retail channels and promotional efforts.
This document provides a case study on Gillette's operations in Indonesia. It discusses Gillette's history of entering the Indonesian market in 1971 and establishing a manufacturing plant. By 1995, Gillette had captured 48% of the razor blade market in Indonesia. The document performs a SWOT analysis of Gillette Indonesia and identifies opportunities to increase razor blade demand through improved marketing and promotion strategies tailored to Indonesian culture.
An American multinational corporation, Nike, Inc. is one of the most leading brands which designs, develops and sells footwear, apparel, accessories, equipment and other services worldwide.
For more details:- https://myassignmenthelp.com/case-study/nike-swot-pest-analysis-case-study.html
Titleist golf balls hold close to half of the golf ball market share. This document provides an analysis of the golf ball industry and Titleist's position within it. It summarizes that Titleist has five golf ball models targeted at different types of golfers, with the Pro V1 and Pro V1x being the most popular. It also notes that while the golf ball industry has matured, Titleist has maintained high profitability through strong branding, product innovation, and professional sponsorships.
GIC x Nanyang Capital Stock Pitch Challenge 2018 - Alpha CapitalAndy Chang
Under Armour has struggled with ineffective inventory management, which has weighed down gross margins as the company has had to sell inventory at a discount. The company has also been unable to capitalize on the fast-growing athleisure market due to its late entry and weak marketing strategies that are not targeted towards the athleisure consumer. Additionally, the company's restructuring plans are viewed as unlikely to generate sufficient savings, and its bullish Asia-Pacific growth projections are not expected to materialize in the short to medium term.
Hitting the Wall: Nike and International Labor PracticesErhan Sozen
Nike pursued a business strategy of outsourcing manufacturing to low-cost countries to reduce costs and increase profits. However, this exposed the company to criticism over poor labor practices in foreign factories. Nike was accused of exploiting workers through low wages and unhealthy conditions. While Nike initially denied responsibility, increasing public pressure and protests led the company to implement reforms like establishing a code of conduct, increasing oversight of factories, and joining industry partnerships and organizations to improve labor standards. However, critics argued Nike still failed to adequately address the key issue of low wages for workers. The document examines Nike's failures to uphold corporate social responsibility in its early business practices and slow response to addressing labor concerns.
My group created an Integrated marketing strategy plan for Nike athletic shoes, based on the data collected from Nike 10K report, Statista, IBISWorld, and etc. in 2018. This slides include but not limited to industry analysis, market analysis, competition analysis, business analysis, recommendations for 2019.
This study analyzed the strategies used by Nike between 1990-2000 to deal with rising criticism. It used Porter's strategic forces analysis and five forces framework to understand Nike's opportunities and threats. The findings showed Nike tried to gain cost leadership by moving production to Asia while also positioning itself as offering differentiated products. Nike employed environmental strategies to address criticism and Whittington's systematic school aligned with its strategic moves.
SWOT analysis helps to assess the present market scenario of a company. Here, we will take a look at Gillette, one of the leading firms in the world specializing in safety razors, and other personal care products. Furthermore, we will closely observe the internal and external strategy factors of Gillette.
Callaway Golf has consistently turned a profit through their diverse product lines that appeal to different types of golfers. An analysis identified opportunities in online shopping and growing female participation in golf (Hennessey, 2019). While well positioned, threats include intense competition and lack of marketing star staff (Corporate Profiles, 2017). To improve, Callaway could better utilize online platforms and target growing demographics like women.
Assignment%20#3 under armour internal and swot analysisBrian Teufel
Under Armour has experienced increasing annual sales and net income since 2006, with around 80% of net income coming from performance apparel (PA). While footwear sales decreased in 2010, PA and accessories sales increased. International sales are rising but remain below 10% of total sales. Under Armour aims to compete more broadly with Nike and Adidas beyond PA. Key strengths are innovation and brand equity.
Nike is launching a new line of compressed apparel called Proton. The apparel is manufactured using high temperature and pressure to compress cotton items by 90%, reducing their size by 10x when compressed. Nike sees opportunities to expand into new markets by marketing the apparel for travel, gifts, and everyday wear beyond just sports. Market research shows demand for branded apparel is growing in India, especially among high income travelers who could benefit from compressed clothing that saves space. Nike plans to target these consumers as well as businesses through various promotional campaigns.
Athos is a startup that produces a wearable suit with electromyography (EMG) sensors to monitor muscle activity during workouts. The suit sends biometric data to an app to provide workout feedback and help users improve. While Athos currently has a competitive advantage over rivals due to its EMG technology, it faces challenges in scaling production, increasing adoption, and maintaining its lead as competitors emerge. Within the next year, Athos must focus on refining its product, educating consumers, and deepening partnerships with athletes.
International Food Policy Research Institute (IFPRI) in collaboration with the Ministry of Agricultural Development, Government of Nepal, and Institute for Integrated Development Studies (IIDS), and Federation of the Nepal Chambers of Commerce and Industries (FNCCI), organized a two day workshop on ‘Best Practices in Contract Farming: Challenges and Opportunities in Nepal’ on 10-11 February 2015 in Kathmandu, Nepal.
IFPRI is engaged in Policy Reform Initiative in Nepal with overall goal to reform agriculture sector for accelerating agricultural growth and enhancing farm incomes. In view of large number of smallholdings in Nepal, contract farming is envisaged as one of the strategies to increase their incomes by linking them with remunerative domestic and global markets. At present, contract farming in Nepal is at its infancy and needs to be popularized. This would require enabling polices and appropriate institutional arrangements. The main aim of the workshop is to learn lessons from the best practices in neighboring countries to address the multi-faceted challenges and opportunities in promoting and up scaling pro-smallholder contract farming in Nepal.
Nike and Under Armour were pitted against each other in a brand comparison to determine which brand consumers prefer and why. While both are seen as expensive, popular sports brands initially, deeper analysis revealed differences. Consumers see Nike as for everyone due to its diverse, inspiring ads and association with comfortable sneakers. Under Armour is seen as for intense athletes due to its technical, performance-focused clothing. Ultimately, more consumers relate to Nike's broad appeal and see themselves wearing the brand, so it emerges as the winner though Under Armour shows potential as an athletic brand.
Set for life final update for presentationHeather Mason
1. Burberry is a British luxury brand founded in 1856 that produces apparel, accessories, and other luxury goods. It has over 500 retail locations worldwide.
2. The company focuses on leveraging its brand, growing in non-apparel products, accelerating retail growth, expanding into new markets, and pursuing operational excellence.
3. Burberry emphasizes corporate responsibility in how it treats employees, suppliers, communities, the environment, and governance.
Introduction to Performance Apparel MarketsBelinda Carp
The document provides information about Textiles Intelligence Ltd, a company that publishes reports on fiber, textile, and apparel industries. It launched its first publication, Textile Outlook International, in 1985 and now publishes several quarterly reports covering topics like performance apparel, technical textiles, and global apparel markets. Each issue of its flagship report Performance Apparel Markets focuses on a specific theme and provides information on product developments, company profiles, and market research features.
Internal Analysis and Strategy Report - LululemonKailey Cornett
The document is an internal case analysis report for lululemon athletica inc. prepared by Kailey Schaneberg for CEO Laurent Potdevin. It provides background on lululemon's success and challenges, including a product recall and leadership transitions that hurt growth. An analysis of lululemon's strengths, weaknesses, opportunities, and threats is presented. The memo recommends that lululemon create an exclusive multi-site fitness membership program, acquire the company that manufactures its Luon fabric to improve quality control and lower costs, expand its men's product line to include traditional sports apparel, and expand its brand ambassador program to professional athletes. Further details supporting these recommendations are attached.
A jammer is a type of swimsuit worn by male swimmers for competitions. It is made of materials like nylon and lycra that provide moderate coverage from the waist to above the knee while being form fitting to reduce drag. A cycling jersey is a specialized shirt for cycling with features like a long back and pockets only in the back for comfort and reduced air resistance when in a bent position. A leotard is a unisex tight full body garment that leaves the legs free, worn for activities like gymnastics, dancing, and circus performances sometimes with ballet skirts or tights.
This document discusses sports garments and fabrics. It provides classifications of sportswear including items for swimming, skiing, football and more. It describes requirements for sports fabrics including strength, durability and moisture wicking properties. Specific fabric blends are listed for activities like running and cycling. The document outlines the production process for sportswear and discusses how certain high-tech garments have been shown to improve athletic performance in swimming, powerlifting and soccer.
Textile in sports and it’s material, structure and applicationttkbal
The document discusses textiles used in sports. It notes that the global sports apparel market has grown significantly in recent decades and is expected to exceed $126 billion by 2015. Key reasons for this growth include the increasing popularity of sports, demands for high-performance sportswear, and developments in engineered textiles. The document outlines various fibers, fabrics, and structural designs used in sports textiles that provide attributes like moisture management, breathability, and quick drying. These textiles have applications in sports apparel, equipment, and venues. The conclusion states that innovation in high-functional fibers and smart materials is enhancing athletic performance and that combining clothing functions with comfort is a growing market trend.
This document summarizes information about lululemon athletica, a designer and retailer of high-end yoga inspired athletic wear. It discusses that lululemon was founded in 1998 in Vancouver, British Columbia by Chip Wilson as a yoga studio and has since expanded to locations across North America and Australia. The typical lululemon customer is described as a wealthy, educated, fit, healthy, active woman who is interested in yoga. Competitive forces, SWOT analysis, value chain, and other strategic aspects of lululemon's business are also summarized.
Lululemon is a yoga apparel company that has experienced rapid growth but also growing pains as it has expanded. It needs to reevaluate its vision and strategies. The document proposes updating Lululemon's vision to becoming the number one women's athletic apparel brand. It also recommends key strategic initiatives around sales growth, operational improvement, cost containment and product innovation. Key result and performance indicators are proposed to measure progress in these areas and ensure overall alignment with the mission.
Topshop is a multinational retailer that started in 1964 in a basement in Sheffield, England. It has since expanded to over 400 stores globally. As part of the Arcadia Group, Topshop focuses on trendy clothing, accessories, beauty and footwear. The document discusses Topshop's history, brands under Arcadia Group, target demographics, marketing strategies, and objectives for further market research and strategic analysis.
El análisis FODA es una herramienta esencial para la planeación estratégica que proporciona información sobre las fortalezas, oportunidades, debilidades y amenazas de una organización. El análisis FODA permite obtener un diagnóstico preciso de la situación actual para tomar decisiones acordes a los objetivos de la organización.
The document discusses the design of ventilation systems for nuclear facilities. The primary purposes of a nuclear ventilation system are to remove and reduce the release of radioactivity to the environment and maintain a safe facility atmosphere. For maximum effectiveness with minimum cost, areas should be divided into zones based on radioactivity levels and once-through air flow should take the shortest route between zones. The pressure differences between zones and air circulation rates must be reasonable to minimize the volume of vented air requiring cleaning or filtration.
This document contains discussion questions about outsourcing. It addresses the pros and cons of outsourcing for consumers and producers. It also discusses the potential long-term impact of outsourcing on American jobs and the consequences of legislation banning government outsourcing to foreign firms. While outsourcing has drawbacks, it benefits companies and the global economy by improving productivity and competitiveness as countries specialize in industries with comparative advantage.
The document provides a market research report on the global apparel, footwear, and fabric industries. It summarizes key statistics on market sizes, growth rates, leading countries and regions, and sub-segments. The global apparel market was worth over $3 trillion in 2011 and key markets are the Americas, EU, and Asia Pacific. Major apparel exporters are developing countries like Bangladesh, China, and India. The footwear market was worth $185 billion in 2011 and is projected to reach $327 billion by 2017, led by Asia Pacific and Europe.
This presentation from Gary Gereffi, Director of the Duke University Center on Globalization, Governance & Competitiveness, covers four main areas:
1. The New Global Economy
2. What is a Global Value Chain (GVC)?
3. GVC Competition: China vs. Mexico
4. GVCs and Emerging Economies: New Sources of Global Competition
1. While economic growth has historically enabled societies to improve lives, national policy choices ultimately determine growth. China's success was due to government efforts to restructure and diversify their economy.
2. As China's manufacturing powerhouse faces rising costs, it must move up the value chain, improve quality, and focus on domestic consumption and developing its own brands.
3. China's environmental pollution has global impacts, and its continued development depends on balancing growth with legal, social and environmental sustainability.
Introduction of Globalization, Trends in Globalization, What Are the Benefits of Globalization, Benefits of Globalization and Challenges of Globalization and its effects,
This document appears to be notes from a business class lecture that discusses Michael Porter's Diamond Model of national advantage. It covers topics like the factors that contributed to US economic dominance after WWII, factors in the decline of US dominance, and countries that emerged as new economic competitors like Japan in the 1970s-1980s and the BRIC countries. It also mentions an upcoming assignment for students to analyze a country using Porter's Diamond Model framework or read about global economics.
This document provides an overview of key concepts in international business and globalization. It discusses how international business differs from domestic business through cross-border and cross-cultural exchanges that introduce additional risks. Reasons for why firms internationalize include seeking growth opportunities and higher profits. While global operations provide strategic benefits, effectively managing complexity across diverse markets can introduce a "globalization penalty" if firms struggle to adapt. Risk mitigation has become a top priority for multinational enterprises.
This document discusses reasons for and benefits of international business from individual and government perspectives, including managing product lifecycles, geographic expansion, trade theories, corporate ambition, and earning foreign exchange. Key benefits are new markets, access to resources, economic efficiency, and employment. Risks and challenges are also outlined, such as high initial costs, strict trade laws, quality issues, political and legal risks, cultural differences, foreign politics, exchange rate fluctuations, and environmental factors. Overall, the document provides an introduction to international business by outlining motivations, advantages, and issues to consider.
1. The document discusses the increasing imperative for global marketing due to globalization trends such as more companies deriving a greater share of revenues from foreign markets and the growth of global customers.
2. Key stages in the evolution of global marketing are examined, from export marketing to global marketing, reflecting approaches that have become increasingly centralized, standardized, and globally integrated.
3. Several theories that help explain trends driving the globalization of markets and the evolution of global marketing strategies are reviewed, including comparative advantage theory, international product cycle theory, and internalization/transaction cost theory.
1. The document discusses the increasing imperative for global marketing due to globalization trends such as more companies deriving a greater share of revenues from foreign markets and the growth of international trade.
2. Key stages in the evolution of global marketing are examined, from export marketing to global marketing, reflecting approaches that are increasingly integrated, standardized, and centralized on a global scale.
3. Several theories that help explain globalization and the international activities of firms are introduced, including comparative advantage theory, international product cycle theory, and internalization/transaction cost theory.
Lectures on International Marketing ManagementFarhana Akter
A multi mediia class lecture on-International Marketing Management for BBA,MBA,CA, ICMA Students and Corporate Trainees/Executives
____________________________________________
Dear Students and trainees/
Welcome you all !
This lecture is mainly prepared for the students of marketing & international business and also for the trainees who are working at corporate sectors and whose jobs are related with international marketing management.
I hope, you surely benefited from this lecture at your practical arena.
Thank you all.
The consumer packaged goods industry has struggled since 2002 to pass on rising commodity costs to consumers. From 2002-2007, as input costs rose 40%, companies only raised prices 15%, losing $70 billion in margins. Structural shifts like value-conscious consumers and powerful retailers have made it difficult to raise prices. Regaining pricing power will require innovation to create new premium products and reset category prices upward. Maintaining pricing discipline amid volatile commodity prices will also be important to protect margins in coming years.
The document discusses the importance of manufacturing for the U.S. economy and jobs. It summarizes trends showing a decline in manufacturing employment from 1970-2010 due largely to rising trade deficits, not productivity. Unfair trade practices like currency manipulation by other countries and their subsidies have contributed significantly. The decline can be addressed by reforming trade policies to curb manipulation, ending subsidies, and providing more support for U.S. manufacturers through job training, R&D funding, and infrastructure investment.
Business Economics 02 Introduction to Business EconomicsUttam Satapathy
The document provides an introduction to economics, discussing key concepts like:
1) Economics involves the study of how individuals and groups make production, exchange, and consumption decisions to allocate scarce resources.
2) Economies face problems of scarcity, requiring choices about what, how, and for whom to produce.
3) Economic analysis helps address these problems through concepts like production possibility curves, opportunity costs, and analyzing costs of production.
The document provides an overview of various elements of the marketing environment including the macro environment, micro environment, and competitive forces. It discusses factors in the political-legal, economic, technological, socio-cultural, and natural environments. It also covers understanding consumer and industrial buyer behavior, and defines analyzing competitive forces through researching current and potential competitors.
The document discusses key factors in business environments including factors of production, social trends, economic systems, and trends in technology and global competition. It notes that factors of production include natural resources, labor, capital, entrepreneurship, and knowledge. Social trends discussed include increasing lifestyle diversity and more dual-income families. Economic systems mentioned include capitalism, communism, socialism, and mixed systems. Technological trends include miniaturization, the internet, and advances in areas like artificial intelligence. Global competition is increasing as exports rise and more companies can compete worldwide.
Chapter 5 How Managers Use Balance of Payments Data – p.213Do.docxrobertad6
Chapter 5: How Managers Use Balance of Payments Data – p.213
Do some research on the items in the table below and see if you see a pattern with the various country’s economies:
1. What is the G7?
2. What is the E7?
G7 Countries
Continent where the country lies
GDP
Ease of Doing Business
1.
2.
3.
4.
5.
6.
7.
NOTE: When you find the GDP (Gross National Product) note the year – you may not have 2018 statistics. That is okay –find the latest data available. You may need to search for the Ranking of Ease of Doing Business – and then find the countries that make up the G7 or the E7.
NEXT PAGE!
E7 Countries
Continent where the country lies
GDP
Ease of Doing Business
1.
2.
3.
4.
5.
6.
7.
A. Compare the 2 groups of countries – explain your findings.
Globalization Effects on Country Institutions, People and Business
Chapter 3
Key Points for the Chapter
Economic development comprises positive economic growth and entails changes in a country’s political, economic, and cultural institutions, as well as in individual values, attitudes, and behaviors.
Economic development requires resources from public and private sectors, both internal and external.
Technology transfers by international corporations comprise manufacturing technologies, management organizations, and marketing know-how.
Intro: The Economic Development Process
Economic development is the progress countries make in living standards as they experience positive economic growth and the changes occurring in societal and cultural institutions and values as nations move toward more advanced stages of industrialization.
Economic progress demonstrates human progress, and more pragmatically, it keeps politicians in power, companies busy, and consumers (and voters) optimistic about the future.
Technology Transfers
International trade, investments, and global media have opened world markets up to a variety of modernizing influences.
In general terms, technology transfers occur as corporations enter new markets with products, technologies, lifestyles, and business methods developed in their home and other international markets.
Technology transfers first affect urban segments of developing countries where there are developed infrastructures and pocket of economically significant customers.
As media become commercialization and distribution channels are built into rural areas, greater proportions of developing-country populations come into contact with modernization influences.
4
Positive Effects
Positive effects occur as societies are exposed to broad varieties of products that make lives easier.
Convenience products such as packaged foods, and consumer durables such as refrigerators, radios, televisions, and stoves have positive effects on consumer lifestyles.
New technologies in manufacturing and distribution make products cheaper and more widely available. They provide employment opportunities for lo.
Chapter 5 How Managers Use Balance of Payments Data – p.213Do.docx
Combined Assignments
1. Under Armour:
PEST and
Industry Analysis
Brian Teufel
MGT 490-004
Assignment #2
Professor McDermott
March 17, 2011
2. Kevin Plank, the CEO of Under Armour developed
a blue ocean strategy
Created Performance Apparel market – enhances
consumers performance while offering greater
comfort
Total sales over $1.0 billion in 2010
First-mover advantage has allowed UA to gain
70% of the U.S. market and about 15% of the
global market
Performance Apparel has evolved from niche to
mainstream in terms of target market and
competition (Nike and Adidas)
3. Key Proof of Dependency Future Challenges
Dependencies
Innovation 1/4 of 3,900 employees Ratio likely to decrease as UA
in R&D branded stores continue to
open
U.S. Market 95% of sales come from International market
U.S. development
Performance 85% of sales come from Product development of non-
Apparel PA PA products
International Product suppliers mainly Diversify supplier locations as
Subcontracting from Asia costs and inflation increase in
China
Retailers 2 retailers make up Brand development and
about 50% of sales franchising
Under Armour owns branded retail stores in 28 U.S. states (30+ stores) and 23
other countries (25+ stores).
- First UA branded retail store opened on November 1, 2007.
4. • Opportunities and Threats are ranked in terms of
importance separately; top five of each are ranked accordingly.
(1 = extremely important, 5 = Not very important.
Factor Trend Evaluation; Impact Rank in
O=Opportunity (1=Low; terms of
T=Threat 5=High) importance
Political - FDI policies T 2 -
Economic - Economic Recovery O 3 -
- Increase in cost of raw materials and T 5 1
resources; shipping costs
i.e. cotton, all man made fibers, and the
big one being OIL/GAS
- Growth of performance apparel O 5 1
industry (Domestic and International)
- Increase in interest rates T 2 5
- Inflation in China increasing T 3 4
- Chinese labor costs increasing T 3 3
Social - Consumers focus on quality, not price O 3 4
- Aging population and increase in O 2 -
physically active seniors
- Increase in physically active women O 3 -
- Consumers becoming more health O 3 -
conscious
- Obesity rates in U.S. T 3 2
- Sport participation is a key aspect of O 3 5
U.S. culture
- Increase in sports participation in O 4 2
emerging markets
Technological - Increase in e-commerce O 4 3
- Increase in m-commerce O 3 3
5. FDI Policies - Some foreign countries have policies in place that prohibit
100% ownership of retail stores which poses threat to internationalization
Chinese Labor Costs Increasing
◦ Costs of international labor is on the rise.
◦ Hourly compensation costs of manufacturing employees in China from
2002-2008 is shown below.
Year National Currency U.S. Dollar Basis
Basis (Yuan) (U.S. $)
2002 4.74 .57
2003 5.17 .62
2004 5.50 .66
2005 5.95 .73
2006 6.44 .81
2007 8.06 1.06
2008 9.48 1.36
6. Factor Comment
U.S. and International Economic Consumers have more disposable
Recovery income
Growth of Performance Apparel PA industry is on the rise and
industry shows no signs of slowing down
Chinese Inflation Chinese inflation is on the rise and
expected to continue to rise
Increase in Cost of Raw Cotton, Man-made fibers, are on
Materials/Resources the rise but GAS is the big factor
•The growth of the performance apparel industry
is the greatest opportunity.
•More Consumers = More Revenues
7. Obesity rates in U.S. show people not physically
active
Consumers focus on quality more than price
Increase in physically active women
Increase in health conscious consumers = more
exercise/physical activity
Sport participation is a key aspect of U.S. culture
Aging population and increase in physically
active seniors
Increase in sports participation in emerging
markets
8.
9. Increase in e-commerce
Increase in m-commerce (trend is to always
have digital connection)
10. Opportunity Rank in terms of Comments
importance (1; least
important, 5; most
important)
Growth of the performance 1 Protect products and
apparel industry (domestic the industry
and international)
Increase in sports 2 Marketing will be key
participation in emerging
markets (foreign markets)
Increase in commerce 3 Take advantage
(electronic and mobile)
Consumers focus on 4 Innovation and
quality more than price Differentiation
Sport participation is a key 5 Sport participation will
aspect of U.S. culture always be a key aspect
of U.S. culture
11. Threat Rank in terms of Comments
importance (1; most
important, 5; least
important)
Increase in cost of raw 1 Buy in higher
materials and resources, quantities; volume
shipping costs discounts
Obesity rates in U.S. 2 Marketing will be key
International labor costs 3 Explore new options
increasing for production
Inflation in China 4 Explore new options
increasing for production
Increase in interest rates 5 Keep debt as low as
possible
12. Under Armour is in the extremely competitive performance apparel
industry which is defined as anything that is worn which enhances the
performance of the user.
Performance apparel global sales = $6.4 billion in 2010 and is expected
to grow to $7.6 billion by 2014.
◦ In 4 years, the industry is expected to grow by 15%.
Participants in the PA Industry
Buyers/Buyer Groups Physically active and want to enhance their
performance, especially athletes. Groups
include both domestic sports teams,
international teams, and retailers
Suppliers/Supplier Groups Third Party Suppliers (100+)
Competitors Nike, Adidas, Columbia Sportswear
Substitutes Conventional apparel or no apparel
Potential Entrants Anyone is a possible entrant in this
industry because of the high growth rates,
especially organizations that produce
apparel, sportswear, or equipment.
13. Force High/Moderate/Low Underlying Drivers
(Strong or Weak)
Threat of New Entrants High Weak
Threat of Substitutes - Core Athletes = High Strong
- Non-Core Athletes =
Moderate
Bargaining Power of - Athletes and Teams Strong
Buyers = High
- Non-Core Athletes
= Moderate
Bargaining Power of Moderate Weak
Suppliers
Intensity of Rivalry High Strong
14. With the expected growth of the performance
apparel industry, there will be new entrants in
the industry from all over the world.
Most companies who enter the performance
apparel industry are unable to compete due
to existing brand loyalty and the high barriers
to entry.
◦ Examples include New Balance, Velocity, and Sugoi
15. Factor Under Armour
Lack of Direct Competition Exceptions include Nike and
Adidas
PA not essential to participate in UA products enhance
sports or physical activity performance and allow comfort
Potential Substitute Products Low
Switching Costs Low
Substitutes are limited to conventional apparel or no
apparel at all.
Core athletes have a large number of substitute
options to choose from.
16. Buyer/Buyer Group Bargaining Power Comment
Core Athletes High Exposure to the public and
Professional Teams builds relationships
Non-Core Athletes Moderate - Limited competition and
Non-Professional substitute products
Teams - UA’s products differentiated
from competition
Recreational Buyer - Consumers do not need
performance apparel to
compete or be physically
active
The bargaining power of buyers depends on the
consumer’s skill level and the level of the team.
17. Factor Under Armour
Switching Supplier Costs Moderate
# of Different Suppliers Very High
Product Uniqueness Moderate
Third Party Suppliers Very High
The use of third party suppliers allows performance
apparel companies to chose their suppliers based on
highest quality and lowest production cost.
Third party suppliers have high bargaining power by being
able to choose the companies that they want to supply for.
◦ The best third party suppliers can select the company or
companies that treat them the best and provide the best
compensation.
◦ There are thousands of third party suppliers all over the world.
18. Factor PA Industry
# of Competitors High
Brand Loyalty High
Industry Growth Rate Extremely High
Quality differences between competitors Moderate to High
Currently, the performance apparel industry is
growing rapidly at 15%; this allows rivalry to grow
rapidly as well.
There is a high # of competitors but UA, Nike,
and Adidas make up the majority of the industry
due to a quality advantage over other
competitors.
20. The opportunities for the performance apparel industry
outweigh the threats.
◦ Labor and gas costs are increasing but opportunities such as the
global growth of the PA industry, global increase in sport
participation, and increase in both e-commerce and m-commerce
outweigh the threats.
Rivalry is extremely high in the performance apparel
industry.
◦ The competition between Nike, Adidas, and Under Armour is
fierce and it continues to heat up.
Participants in the performance apparel industry must
always be aware of new entrants because the industry is
on the rise.
◦ Create high barriers to entry.
Blue Ocean Strategy was the basis for Under Armour and it
allowed them to achieve success in the PA industry.
◦ Innovation, Differentiation, R&D, Creating Niche of performance
apparel that enhances performance while allowing comfort.
24. Company PA Sales Total Sales PA sales as % % of sales
(in millions) (in millions) of total sales spent on R&D
Under Armour $853 $1,060 81% 33%
Nike $1,300 $19,014 7% 12%
Adidas $1,150 $11,990 9% 5%
Columbia $400 $1,484 27% 1%
Sportswear
Company
Sugoi $34 $85 40% 2%
PUMA $425 $2,862 15% 4%
Quiksilver $250 $1,834 14% 3%
North Face $300 $1,400 21% 3%
New Balance Private Private Private Private
Company Company Company Company
25. Competitive
Advantage
Low Cost Differentiation
• New Balance • Nike
• Columbia Sportswear • Adidas
Company • Under Armour
• Champion
Broad
Target
Competitive
Scope • PUMA
• The North Face
• Quiksilver
Narrow
Target
26. Price
Low High
•New Balance
Low
•Champion
•PUMA
Quality
•Columbia
Sportswear
•Quiksilver Company
•The North Face
High
•Adidas
•Nike
•Under Armour
27. 1% 2% Sales
4%
9% U.S.
Europe
20% Asia/Pacific
64%
Rest of North America and South
America
Africa
Australia
29. Company Core Competence/Competencies Core Competencies -
Weak/Moderate/Strong
Under Armour Innovation, Quality, R&D Strong
Nike Inspiration, Innovation, Strong
Brand Image/Loyalty
Adidas Innovation, Technology, Strong
Sustainability
Columbia Distribution, Outerwear Moderate
Sportswear
Company
Sugoi Quality, Bicycle-wear Moderate
PUMA Sustainability, Value, Moderate
International Football
Quiksilver Surfwear, Quality Moderate
North Face Innovation, Outerwear Moderate
Environmental Awareness
New Balance Footwear, Innovation, Customer Weak
Service
Champion Comfort, Quality Weak
30. Company Key Brands Product Scope
Under Armour Under Armour Apparel, Footwear, Accessories
Nike Nike, Nike Golf, Air Jordan, Apparel, Footwear, Sporting
Cole Haan, Hurley, Equipment, Accessories, Caps
Converse, Umbro, ect…
Adidas Adidas, Reebok, Taylor Apparel, Personal Care, Footwear,
Made Golf Sporting Equipment, Accessories,
Caps
Columbia Columbia Sportswear, Apparel, Footwear, Accessories
Sportswear Mountain Hardware, Sorel,
Company Pacific Trail
Sugoi Subsidiary of Dorel Apparel, Accessories
Industries Inc.
PUMA Puma, Cobra Golf, Tretorn Apparel, Footwear, Sporting
Equipment, Accessories
Quiksilver Quiksilver, DC, Roxy, Hawk Apparel, Footwear, Accessories,
Sporting Equipment
North Face Subsidiary of VF Corporation Apparel, Sporting Equipment,
Camping Equipment, Accessories
New Balance New Balance, Dunham, Apparel, Footwear, Accessories
Aravon, Warrior, Brine
Champion Subsidiary of Hanes brands Apparel, Footwear, Accessories
31. Company Target Market Market Power
(Low/Moderate/High)
Under Armour Male and female, anyone who wants to High
enhance performance and comfort
Nike Male and female, ages 18-35, physically High
active, athletes
Adidas Male and female, physically active, Moderate
athletes
Columbia Male and female, physically active, loves Moderate
Sportswear outdoor activities
Sugoi Male and Female, physically active, Low
loves biking and running
PUMA Male and Female, physically active, Moderate
loves soccer (international football)
Quiksilver Male and female, young adult (ages 15- Low
35), love warm weather activities
(surfing/skating)
North Face Male and female, young adult (ages 16- Low
35), love cold weather activity
New Balance Male and female, older adults (ages 35+), Low
love walking/running
Champion Male and female, hard working, Low
physically active, all ages
32. Performance Apparel is defined as anything that
is worn which enhances the performance of the
user.
New and existing companies are attempting to
break into the PA industry every day due to the
rapid growth.
The top three companies in the global PA
industry include Nike, Adidas, and Under Armour
Gross sales come from company owned stores
and third party retailers.
Sell products of quality which enhance
performance while providing comfort to the user.
33. Global Performance Apparel Sales ($ billions)
10
8 7.6
6.4
6
Global Performance
4 3.3 Apparel Sales ($
2.8
billions)
2
18% Inc. 52% Inc. 15% Inc.
0
2002 2006 2010 2014
• The Performance Apparel industry has grown
rapidly in the past four years and it is expected
to continue to grow rapidly the next four years.
35. Trend Opportunity/Threat Comment
Sales increase (15%+) Opportunity Will continue to grow
Quality over price Opportunity Consumers want value for their
money
Increase in technological Opportunity Compression apparel is currently
innovation the big thing in PA
People becoming more Opportunity Market to entire market, not
physically active particular segments
Increase in cost of raw Threat Find ways to negate such costs
materials/resources
Eco-friendly design Opportunity More consumers will buy product
and feel they are helping the
environment
Fashion friendly Opportunity Consumers feel better when wearing
something fashionable (esp.
women)
New competitors entering Threat Create high barriers to entry and
market superior product
Moving towards all ages Opportunity Market to entire market, not
(older generation) particular segments
36. Company Corporate Social Mission Marketing Vision/Strategy
Responsibility Statement
Under Innovation, Inspiration, Make all athletes -Athlete Be the world’s #1
Reliability, and Integrity better through Endorsements performance
Armour passion, science, -Commercials/ athletic brand
and the relentless Slogans (“Click
pursuit of clack” and “We
innovation must protect this
house”)
-Event and team
sponsorships
Nike Sustainability, Bring inspiration -Brand Image Experience the
Innovation, Quality and innovation to -Brand promotion emotions of
every athlete in the -Athlete and team winning and
world. sponsorships crushing the
competition.
Adidas Sustainability, Strive to be the -Brand Image Enhance social and
Innovation, global leader in the -Focus on env. performance
Environmental sporting goods international in the company
Awareness industry with sports marketing and the supply
brands built on a -Athlete and team chain, thereby
passion for sports sponsorships improving the
and a sporting lives of the people
lifestyle making our
37. Company Corporate Mission Marketing Vision/Strategy
Social Statement
Responsibility
Columbia Responsible Provide consumers -Increase on-line Continue to
business practices the greatest marketing internationalize
Sportswear balancing quality outdoor -Stick to what we and provide high
economic goals gear while keeping know and show quality products to
with social and them safe consumers outdoor
environmental advantage of enthusiasts
considerations products
Sugoi Innovation, Make excellent _Increase global Every garment that
Excellence, Value performance awareness of carries the Sugoi
athletic wear for brand name is still
bikers and various _Prove quality designed,
other activities and uniqueness developed, and
to consumers made in Vancouver,
Canada
PUMA Sustainability, Stay true to our -Sponsor PUMAvision- create
work towards a values; inspire the international a safer, more
more eco-friendly passion and talent football and peaceful, and more
world, global of our people cricket players creative world than
peace, Quality working in and teams we know today
sustainable, -Increase
38. Company Corporate Social Mission Statement Marketing Vision/
Responsibility Strategy
Quiksilver Touch people Become the leading Focus is social Maintain our core focus
worldwide and global youth apparel media and roots while bringing
improve quality of company our lifestyle message of
life, quality board riding,
independence, creativity
and innovation to this
global community
North Send famous athletes Never stop exploring -Goal is to Our passion is beyond
overseas and give increase brand setting records and
Face back as much as they awareness achieving fame, it's all
can; innovation; -Social about changing our lives
consumer-focused marketing and those people who
inspire us to aim for
extraordinary dreams
New New Balance Demonstrating -Word of Continue to give back to
Foundation; Make responsible leadership, mouth all communities and
Balance consumers value we build global brands -Athlete provide excellent
worth their money that athletes are proud sponsorships products to excellent
to wear, associates are consumers
proud to create and
communities are proud
to host
Champion Ethical business Anticipate what -Social media world-class consumer
practices, protect consumers want and -Athlete goods company with a
environment, quality innovate to meet those endorsements distinctive competence
needs in comfort, fit, in operating a low-cost
and value global supply chain
39. Social media has impacted the PA industry
positively, increase in sales due to easier
communication between consumers.
Consumers can give feedback (+ and -) in a
relaxed environment.
Consumers can also socialize with other
consumers to discuss PA products.
Marketing has been most effected by social
media with sites such as
Facebook, Twitter, Foursquare, and LinkedIn.
◦ PA companies can market to larger groups of consumers
at a much cheaper cost.
40. Nike and Adidas are Under Armour’s primary
competition in the performance apparel industry.
Nike and Adidas have jumped UA in total PA sales
even though PA accounts for only 7% of Nike’s and 9%
of Adidas’s total turnover.
Under Armour would be the global leader in
performance apparel sales if they were as successful
internationally as they currently are in the U.S.
Asia and North America are fueling growth in the
performance apparel industry with Europe also
growing.
The performance apparel market is growing at a rate
of higher than 15% and it is expected to continue to
increase for the for seeable future.
41. Under Armour:
Internal Analysis,
SWOT Analysis,
Competitive Position, and
Conclusions/Recommendations
Brian Teufel
MGT 490-004
Assignment #3
Professor McDermott
March 17, 2011
42. Year PA Sales Total Net Total Net % of Net
(in Sales (in Income Income Income
millions) millions) from PA (in from PA
(in millions)
millions)
2006 $373 $431 $32.4 $39 83%
2007 $513 $607 $40.5 $52.6 77%
2008 $579 $725 $31.5 $38.2 82%
2009 $652 $856 $38.2 $46.8 82%
2010 $853 $1,064 $55.1 $68.5 80%
• Under Armour’s PA sales and net income have increased every year since 2006.
43. $1,200.00
$1,000.00
$800.00
Licensed Revenue
$600.00 Accessories
Footwear
$400.00
Performance Apparel
$200.00
$0.00
2006 2007 2008 2009 2010
• On average, around 80% of Under Armour’s net income comes from PA.
44. • All $ amounts are in millions
Year PA % inc. Foot % inc. Access- % inc. Licensed % inc. Total % inc.
% dec. wear % dec. ories % dec. Revenue % dec. Sales % dec.
2006 $373.2 - $26.9 - $14.9 - $16 - $430.7 -
2007 $513.6 27% $40.9 34% $29.1 49% $24 33% $606.6 29%
2008 $578.9 11% $84.8 52% $31.5 8% $30 20% $725.2 16%
2009 $651.8 11% $136.2 38% $35.1 10% $33.3 10% $856.4 15%
2010 $853.5 24% $127.2 (7%) $43.9 20% $39.4 15% $1,063 19%
• Footwear sales increased every year from 2006-2009 but decreased by 7% in 2010.
• PA and accessories sales have increased every year; PA had a huge increase of 24%
from 2009 to 2010.
45. Year N.A. Sales % inc. % of Total Foreign % inc. % of Total
(in millions) % dec. Sales Sales % dec. Sales
2006 $415 - 100% $0 - 0%
2007 $582.5 29% 100% $0 N/A 0%
2008 $692.4 16% 95% $32.9 100% 5%
2009 $808 14% 93% $48.4 32% 7%
2010 $997.8 19% 91% $66.1 27% 9%
• International sales have increased every year since 2008 but UA is still heavily
reliable on North America for about 90% of their total sales.
46. Asset Distribution Cash and Cash
Equivalents
Accounts Receivable
12%
30%
11%
Inventories
15% Property and Equipment
32%
Other
Asset $ in Millions
Cash and Cash Equivalent $203.870
A/R $102.034
Inventories $215.355
Property and Equipment $76.127
Other $77.992
Total Assets $675.378
47. 200, 5%
Factory House and
Specialty Stores
900, 23%
Distribution Facilities
2200, 57%
600, 15%
Research and
Development
Other
# of Employees, % of Total Employees
• Under Armour has a total of 3,900 employees.
• Factory House and Specialty Stores employees are increasing rapidly because
UA is opening more branded stores.
• Almost ¼ of UA’s employees are devoted to research and development.
48. Strength Impact (1=Low; 5=High)
Brand Loyalty 4
Brand Equity 5
Core competence in Innovation 5
High Quality Apparel 4
Increase in Sales Every Year 3
Wide Range of Apparel 3
Athlete and Team Sponsorships and Endorsements 3
Very Intelligent and Efficient R&D Team 4
Weakness Impact
Small Total Sales and Net Income compared to Nike and Adidas 4
Heavily Dependent on Domestic Market; Small International Presence 5
High Prices 3
Not a Synergistic Marketing Campaign 3
Heavily Dependent on PA for Sales (80%+) 4
Target Male Market more than Female Market 2
27% of Sales come from 2 Distributors; Dick’s and The Sporting Authority 4
49. Opportunity Impact
(1=Low; 5=High)
Economic Recovery 3
Growth of PA Industry (Domestic and International) 5
Consumers focus on Quality, not Price 3
Aging population and increase in physically active seniors 2
Increase in physically active women 3
Consumers becoming more health conscious 3
Sport participation is a key aspect of U.S. culture 3
Increase in sports participation in emerging markets 4
Increase in e-commerce and m-commerce 4
Threat Impact
FDI Policies 2
Increase in cost of raw materials and resources; shipping costs 5
i.e. cotton, all man made fibers, and the big one being OIL/GAS
Inflation in China Increasing 3
Chinese Labor Costs Increasing 3
Obesity Rates in U.S. 3
50. Rank in respect to entire Factor S/W/O/T
SWOT Analysis
1 Core Competence in Innovation S
2 Increase in cost of Raw Materials, Resources, T
and Shipping Costs . . . OIL/GAS!!!!
3 Brand Equity S
4 Heavily Dependent on U.S. Market; Small W
International Presence
5 Growth of PA Industry O
6 27% of Sales come from 2 Distributors W
7 Heavily Dependent on U.S. Market for PA Sales W
8 High Quality Products S
9 Increase in Sports Participation in Emerging O
Markets
51. Competitive
Advantage
Low Cost Differentiation
Broad
Target Moving Here
Competitive
Scope
Narrow
Target
Started Here
• UA is moving from niche to mainstream
in an attempt to compete with Nike and
Adidas on other product lines (footwear and
accessories) other than performance apparel.
52. Market Share
High Low
•Performance
Apparel
High •Footwear
Star Question
Mark
•Accessories
Market
Growth
Low Cash Cow Dog
53. • UA creates value for the consumers and gains its competitive advantage
against the competition primarily through technology development.
• Innovation is what made UA what it is today, and Innovation is the
key for future success.
54. Primary Activities Weak/Moderate/Strong Under Armour
Inbound Logistics Moderate Third Party
Operations/Manufacturing Moderate Third Party
Outbound Logistics Moderate Third Party
Marketing and Sales Moderate Currently, UA has many
sponsorships and endorsements but
no synergy in marketing plan
After-Sale Service Strong UA has great reputation for
customer service and after-sale
service
Support Activities Weak/Moderate/Strong Under Armour
Firm Infrastructure Strong UA is structured very well and
has great company culture
Human Resources Moderate UA is limited by only having
Management 3,900 employees but they hire
and train very well
Technology Development, Very Strong Innovating and producing
Engineering technologically advanced
products is what UA does
Procurement Moderate Third Party
55. Component Comment
Innovation UA is extremely reliant on producing
innovative products that will continue to
impress their consumers and hold on to
high brand equity and brand loyalty
Market Development UA is really focused on selling their
products to emerging markets; 90%+ of
UA’s products are sold in the U.S.
Market Penetration UA would love to improve their market
share in the U.S. for PA and improve their
footwear and accessories sales as well
Product Development UA is devoted to continue to introduce
new products to the U.S. and also other
emerging markets around the world
Research and Development UA plans on continuing to produce new
and technologically advanced products
which are superior to the competition
56. Strategy Products, Market Under Armour
Market Penetration Existing Products, Very Strong Existing products
Existing Market are high quality and UA holds
majority of existing market (U.S.)
- Continue increasing U.S. market
share
Market Development Existing Products, Strong Existing products are
New Market high quality but UA needs to
increase market share in
international and emerging markets
Product Development New Products, Very Strong All new products
Existing Market are technologically advanced from
previous products
-U.S. market receives new products
extremely well (Loves Innovation)
Diversification New Products, Weak Very difficult to
New Market introduce new products into new
markets without having a decent
market share of existing products
57. 1 = Lowest Level of Effort
4 = Highest Level of Effort
Existing Products New Products
2 3
Existing Market
Market Penetration Product Development
4 1
New Market
Market Development Diversification
• UA is focused on all of these strategies but they
must prioritize according to what will achieve them
the greatest amount of success and what will put them
in the best position to grow in the future.
58. Domestic Sponsorships/Endorsements
Athlete/Team Association/Sport Type of Deal
All Teams NFL Official supplier of Footwear
Auburn, Boston College, NCAA Official Outfitter
Maryland
Brandon Jennings NBA Endorsement
Lindsey Vonn Skiing Endorsement
Tom Brady NFL Endorsement
Michael Phelps Swimming Endorsement
Hunter Mahan PGA Endorsement
Cam Newton NCAA/NFL Endorsement
International Sponsorships/Endorsements
Athlete/Team Association/Sport Type of Deal
Tottenham Champions League PA and Accessories Provider
Hockey Canada National Team Official Outfitter
Hanover 96 Bundesliga PA and Accessories Provider
All Teams Welsh Rugby Union PA and Accessories Provider
59. PA sales and overall sales have increased every year
since Under Armour has been founded.
PA sales account for more than 80% of total sales.
International sales account for less than 10% of sales
but they have been increasing slightly since 2008.
Under Armour is attempting to make a push into
international and emerging markets.
The two main strengths for Under Armour are its core
competence in innovation and its brand equity.
UA is moving from niche to mainstream in an attempt
to compete with Nike and Adidas on other product
lines (footwear and accessories) other than
performance apparel.
60. Under Armour’s primary focus should be to
increase their U.S. market share in other products
such as footwear and accessories while
maintaining market leadership in PA.
Under Armour should move into international
and emerging markets with caution to assure
they do not expand too quickly.
Under Armour needs to continue to provide value
to consumers through innovation and research
and development.
Under Armour needs to integrate their marketing
plan and make sure than all sponsorships and
endorsements contribute to the value of the
brand.