Robbert de Weijer - Armour Energy - Armour Energy’s prospective NT assets
Under Armour Started in 1996 my former Univ. of Maryland football player Kevin Plank Idea was to...
-
Upload
cecilia-walton -
Category
Documents
-
view
218 -
download
0
Transcript of Under Armour Started in 1996 my former Univ. of Maryland football player Kevin Plank Idea was to...
UNDER ARMOUR’S HISTORY
Started in 1996 my former Univ. of Maryland football player Kevin Plank
Idea was to create a shirt that worked as well as compression apparel
First collegiate teams signed were Georgia Tech and Arizona State University
In 1997 added two new product line ColdGear and AllseasonGear
In 1998 Under Armour was featured in “Any Given Sunday” and “The Replacements”; caused an increase in sales
Went public in 2005 and has increased in value since then
In 2010 CEO Kevin Plank announced they reached the $1billion target in sales for the first time
VISION & MISSION
Vision: “To be the world’s #1 performance athletic brand.”
Mission: “To make all athletes better through passion, science and the relentless pursuit of innovation.”
INDUSTRY
The popularity of sports has created an industry that will continue to prosper and will give consumers many reasons to purchase from preventive health care to ego
The Companies in the Performance apparel manufacturing industry have a great commitment to social responsibility. The companies have several different efforts to give back to the community they operate in. E-commerce is on the rise.
INDUSTRY
Performance Enhancing Technology
The United’s States Sports Culture has caught attention around the globe
In 2010, US consumers spent about $337 billion on clothing and footwear
Elimination of Tariffs and Increase in Free Trade Agreements
CORPORATE STRATEGY
Vertical Integration
To combine additional stages of production
By gaining control of inputs and outputs By controlling resources
NIKE
Revenues of $19,014,000
34,400 Employees
Occupies a large portion of the athletic shoe market
Will replace Reebok as the official brand for the National Football League
COLUMBIA SPORTSWEAR
Revenues 1,483,500
3,200 Employees
One of the United State’s biggest skiwear sellers and focuses on active outdoor wear
There are several opportunities for Columbia to expand in the global market. Columbia is also expected to continue product diversification through acquisitions.
ADIDAS
Revenues of 15,889,100
41,287 Employees
Whole sale athletic goods manufacturer, producing goods such as footwear, apparel and equipment for professional sports team and retail
Purchased Reebok in April of 2006
Global Presence
HOW DOES UNDER ARMOUR COMPETE?
Under Armour has a differentiation strategy
“moisture-wicking synthetic fabrications engineered in many designs and styles for wear in nearly every climate to provide a performance alternative to traditional natural fiber products.
Brand Loyalty
BACKWARD AND FORWARD VERTICAL INTEGRATION
Under Armour Inc. looks to Backward Vertical Integration To increase control of its supply systems Will allow UA to directly affect customers’
satisfaction
Under Armour Inc. looks to Forward Vertical Integration To include control of the direct distribution of its
products Direct-to-customer relationship
Porters Five Forces
Current Rivalry: High, Nike, Adidas, Columbia Sportswear; others
Potential Entrants: Moderate, R&D costs discourage other organizations from entering.
Bargaining Power of Buyers: Low, due to market share.
Bargaining Power of Suppliers: High, due to fabric used.
Substitute Product and Services: High, competitors have mimic products.
COMPANY SCOREBOARD
CURRENT REVENUE GROWTH
FINANCIAL RATIOS ANALYSIS
Current Ratio: 4.1
ROA: 11.22
ROE: 15.15
Net Profit Margin: 6.44
Increase in Profitability and Company is in Good Financial Standing.
SWOT- STRENGTHS
Brand Equity Recognizable and appealing
Innovation & Growth PolyArmour HEATGEAR, COLDGEAR, ALLSEASONGEAR Charged Cotton
Professional & College Athlete Sponsorship Universities Athletes in Different Sports
SWOT- WEAKNESSES
Pricing Expensive
Dependence on 2 Distributors Dick’s Sporting Goods and The Sports
Authority
High Reliance on Domestic Market 88% of net sales from within U.S.
SWOT- OPPORTUNITIES
Market targets of women and youth
Introduction of footwear
Continuation of producing high quality products
Going internationally
Big name athlete endorsements
Using cotton in their shirts
SWOT- THREATS
Intensity of competition within the industry
Not placing patent on original design
Competitors having higher cash flows that can be put toward capital expenditures
Abandoning original demographic of intense athletes
Crude oil prices
DIVERSIFICATION
The new launch of their mouth guard “the Under Armour Performance Mouth wear by ArmourBite Technology. ArmourBite powered as fifteen years of research and development as well as approval of satisfied Professional, Collegiate, Amateur and Novice athletes.” (Dr. Frank W. Montoya, 2008)
DIVERSIFICATION FROM COMPETITORS
For example, the organization is settings its footwear apart by running shoes, and they'll tick off a list of advances in the composition of the foam in the sole or the moisture-resistant fabric used in the shoe's upper.
Other technology the company is adding to set its footwear apart is cartilage and rotational traction football cleats are uncomfortable to stand on. So Under Armour added disks of gel beneath each stud. On the other hand, baseball players make a lot of left-hand turns. Circular grooves under one of the upper studs of its baseball cleats help players get traction when they round the bases.
In addition, suit research suggests compressing muscles after exercise helps stabilize them and rebuild tissue. Under Armour plans to launch togs that athletes can wear post-workout to recharge muscles (Mehta, 2009)
RECOMMENDATIONS
Continue current strategy Expand sports equipment line
Look across other industries and break into new market space Use new material that reflects heat and
UV rays to create car seat covers
OPTIONS
Athlete Care Line Prevent/care for injuries Use moisture-wicking material in casts,
athletic tapes, wraps
Expand into sports drinks industry Team up with Gatorade for marketing
REVIEW
Under Armour founded in 1996
Mission: “To make all athletes better through passion, science and the relentless pursuit of innovation.”
Top Competitors: Nike, Columbia Sportswear, Adidas
Diversification: Innovation and Technology of new markets Options: Prevent/care for injuries Use moisture-wicking material in casts, athletic tapes,
wraps Team up with Gatorade
http://www.youtube.com/watch?v=5x0IVSKbkCk
ANY QUESTIONS???