...Introduction Under Armour started in 1996 when Kevin Plank had an idea that there was a better way then having to change a sweat soaked t-shirt and developed an idea. He started in his grandma’s basement producing a new synthetic under shirt for people to wear and keep them comfortable during a game or workout. (4) The company has grown every year, usually double digits, since its establishment. The following will review the SWOT and Value Chain analyses. SWOT Analysis Under Armour strengths are having a variety of products including performance apparel, athletic shoes, licensing, and accessories. The company has grown to a recognized brand in the United States with the help of the different sports endorsements. They have become the athletic wear of the NFL, NHL, MLB, and US ski team with undershirts, footwear, and accessories after just four years of establishment. The development team at Under Armour is very efficient and qualified at meeting the additional needs of the consumers when needed. The sales and net income from the performance apparel has increased every year since 2006. Performance apparel is the highest quantity of retail sales in the company, making up about 80 percent of Under Armour sales. Under Armour has weaknesses within the company and method of expanding. The company has yet to establish itself around the world. Over 90% of its 2013 revenues came from North America. (1) The competition is bigger and more established then Under Armour. Sales and net...
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...SWOT Analysis Findings Nike is the world’s leader in equipment, sportswear, and of course athletic sneakers. As golf was introduced into Nike endorsements were used. “The company continued this strategy in 1995 by signing budding superstar Tiger Woods…”(Brna). The sport of golf may be one of the newest additions to Nike, but they thrive to compete against companies such as Adidas and Under Armour. Like Nike, Adidas and Under Armour completed a SWOT analysis on their organization and competition. Strengths Adidas and Under Armour each have similar strengths like Nike, but they also have other strengths that set each apart from one another. Adidas and Under Armour are both financially strong. Adidas is present in over 200 countries and have a very wide product line, while its largest market is in Europe. Adidas is well known in sponsorships with soccer team, and has had its ups and downs in basketball, but currently they have risen with the endorsement of Derrick Rose of the Chicago Bulls. Under Armour is a strong brand that targets men in sports and have a strong endorsement deal with Carolina Panthers’ Cam Newton. Their mission is “To make all athletes better through passion, design and the relentless pursuit of innovation”( Plank).Under Armour have an innovation and technology driven through its sports performance clothing design. Also, Under Armour earnings have made a significant increase in profit due to sponsorships of school and university teams, and serves as a sponsor...
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...increase market share. The Under Armour brand has been built on differentiation, authenticity, and originality. An advanced second skin microfiber under garment to control perspiration and body temperature, for athletes as well as those who lead active lifestyles, is the cornerstone of Under Armour’s business. Since founder Kevin Plank first launched the original Under Armour compression t-shirt in 1996, the company has experienced rapid growth, with distribution to over 500 retail stores, outfitting agreements with athletic teams, and international expansion. Over the past decade, Under Armour has expanded its marketing efforts and has not limited itself to only athletic wear by increasing its product offerings to include footwear, accessories, children’s wear, and women’s active wear. Problem Statement Under Armour has excelled in its product and marketing strategy to date, however the company must seek to improve the future prospects for growth, including, but not limited to, product manufacturing, operations and distribution, and market expansion. Analysis With the growing popularity of collegiate and competitive sports and physically active lifestyles Under Armour has experienced continuous growth and success, despite the many competitors saturating the sports apparel market in recent decades. Such notable success and exponential growth is due largely to Under Armour’s product innovation and differentiation. This analysis will evaluate Under Armour’s current strategy...
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...Table of Contents Written Report Executive Summary…….............................................................................. 2 Company Profile………………………………………………………..…..3 Industry Analysis…………………………………………………………...4 SWOT Analysis………………………………………………………….....8 Valuation…………………………………………………………………..12 Conclusion……………………………………………………………..…..13 Historical Ratio Analysis Valuation ratios………………………………………………………........17 Dividends………………………………………………………………….17 Growth rates……………………………………………………………….18 Financial strength………………………………………………………….18 Profitability ratios………………………………………………………….19 Management effectiveness…………………………………………….......19 Efficiency………………………………………………………………….19 Valuation Tables Pro Forma Income Statement……………………………………………..21 Pro Forma Balance Sheet…………………………………………………23 Free Cash Flow……………………………………………….…………...25 Free cash flow valuation summary……………………………..……...….26 WACC calculation………………………………………………………...27 Sensitivity analysis………………………………………………………...27 Graphs/ Plots Net income (loss) by year……………………………………………….…28 Free cash flow by year……………………………………………………..28 Written Report Executive Summary Executive Summary Introduction of the Firm Under Armour (UA) was incorporated on July 1, 1996; producing and distributing performance apparel and footwear for athletes of all ages. The brand engineered a fabric that enhances performance and comfort through its “moisture wicking” fabrications that helps athlete’s performance no matter the weather...
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...Case Study: Under Armour 1. How strong are the competitive forces confronting Under Armour, Nike, and The adidas Group? Do a five- forces analysis to support your answer. The analysis of the Porters five forces are very important to business entities. Based on the analysis a business can evaluate their current position and positions that they plan to progress towards as it relates to the industry they are operating in. The following is my five forces analysis of the competitive forces confronting the companies that operate in the industry that Under Amour, Nike and Adidas operate in. Competitive Rivalry: There are many companies in the sports apparel, footwear and accessories industry, such as Nike, Adidas, Puma, Champion, New Balance etc. just to name a few. Many of the company’s competing in the industry offer a wide variety of similar products and each is trying to establish its brand as the brand for customers to commit their money and loyalty towards. What is obvious right away is that Nike and Adidas are Under Amour’s two biggest competitors and they have the highest percentage of market share. All three companies are established, have good resources, strong finances, sound marketing plans and popular celebrities that they can use to endorse their products. Therefore I think it’s safe to say that competitive rivalry in the industry is pretty strong. Supplier Power: The supplier power in the industry is low because there are many manufacturers...
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...Tanya Date: June 18, 2012 Re: Analysis of Under Armour’s Business Locally and Globally After a thorough analysis of your company, I recommend that you continue the footwear line in the United States and expanding internationally with the performance apparel. I feel that this modification will help the company take advantage in different markets overseas while still expanding in the United States. In this memo, I will first outline what I consider to be your company’s implemented business model plan, and after the SWOT analysis of the company, I will make recommendations for the revisions of Under Amour’s. Business model for Under Armour Mission of Under Armour. Under Armour business model revolves around the design, production, marketing, and distribution of high-tech athletic performance apparel to men, women and youth. The company’s main focus is the production of apparel for football, even though it has made vast advances in other sports such as, baseball and lacrosse. I believe the company should continue focusing on updating the production of apparel for the sports already dominated in while targeting other sports such as, Olympic sports, soccer, and basketball. Under Armour’s business model is one of a kind in that the company builds its sales efforts in constituting a base, wherein products are pushed out to sports professionals with the purpose that the style is seeped into majority of consumers. Business model for operations. Under Armour’s business model main focus...
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...We Must Protect This House Under Armour Marketing Plan April 27, 2011 Table of Contents 1.0 Executive Summary…………………………………………..……….3 1.1 Keys to Success……………………………………………......…3 2.0 Marketing Environment………………………………………………4 2.1 Internal Factors…………………………………………………..4 2.2 External Factors………………………………………………….5 3.0 Marketing Plan………………………………………………………...5 3.1 Resources…………………………………………………………6 3.2 Objectives…………………………………………………………6 3.3 Marketing Strategy………………………………………………..6 4.0 Target Market……………………………...………………………….7 4.1 Who is Targeted?............................................................................7 5.0 Marketing Mix……………………………….…...……………………8 6.0 SWOT Analysis……………..…………………...……………...……..9 1.0 Executive Summary Under Armour is a high performance clothing line, designed to meet the needs for today’s top athletes. Under Armour is known for its quality and durability, all while providing the customer with different choices regarding fashion trends. Our Mission: To provide the customer with the best possible experience while striving to reach their athletic goals. Under Armour was started in 1996, by a University of Maryland football player, Kevin Plank. Planks initial goal was to create a t-shirt that helped sweat disperse from an athlete’s body, rather than being absorbed by a cotton t-shirt. Since the creation of the compression shirts, Under Armour has expanded their line to compression shorts, thermal...
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...Table of Contents Brief History………………………………………………………………………P.3-4 Current Status……………………………………………………………………..P.5 SWOT Analysis……………………………………………………………………P.6-7 Direct Competitors…………………………………………………………………P.7 Genral Trends………………………………………………………………………P.8 External Influences………………………………………………………………….P.8-9 Global Issues………………………………………………………………………..P.9 Problems…………………………………………………………………………….P.10 Income Statements………………………………………………………………….P.11 Ration Analysis……………………………………………………………………..P.12-16 Work Cited…………………………………………………………………………P.17 Conclusion………………………………………………………………………….P.18 Worked Cited………………………………………………………………………P.19 Brief History One of the biggest name in American sports clothing and accessories is Under Armour. This company focuses on providing hi-tech sportswear for professional athletes, but they also have a large range of sportswear and casual apparel for others. Kevin Plank founder and CEO of Under Armour, he first carne up with the ideas for Under Armour in 1995. Plank was the special teams' captain on the University of Maryland football team. He noticed after every game him and his teammate cotton T-shirt were heavily soaked in sweat. He told himself "there has to be something better". He also noticed that his synthetic fabric short in wore in practice stay dry. After graduation from Maryland, Plank set out to corne with a product that sports have never seen before. On a trip to New York City famous garment district for fabric...
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............. 2 Current Mission and Vision Statement.................................................................................... 2 New Mission and Vision Statement ........................................................................................ 3 III. SWOT and Environmental Analysis......................................................................................... 3 Columbia SWOT Analysis ...................................................................................................... 3 Columbia SWOT Matrix ......................................................................................................... 4 Cabela's SWOT Matrix............................................................................................................ 4 Patagonia SWOT Matrix ......................................................................................................... 5 Lululemon SWOT Matrix ....................................................................................................... 5 Under Armour SWOT Matrix ................................................................................................. 5 Marmot SWOT Matrix ............................................................................................................ 6 Macroeconomic Factors...
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...Under Armour’s Strategy Case Analysis 1. How strong are the competitive forces confronting Under Armour, Nike, and The Adidas Group? Provide a five-forces analysis to support your answer. The competitive forces confronting Under Armour, Nike, and the Adidas Group are very strong. There are many other companies who offer similar sportswear and gear lie these three groups. A consumer has a wide variety of merchandise available to choose from, and the price to pick one brand over another costs the customer very little. All the competitors have allowed the market to be saturated with similar merchandise without much differentiation in products. The companies have an equal economic capability and economy of scale as Under Armour, Nike, and Adidas Group which allows them to remain equally competitive. The competitive pressure coming from new entrants into the sportswear apparel industry is relatively high. Active lifestyles are promoted heavily and customer demand for athletic products are high which means newcomers can expect to earn exponential profits. If a company has the resources to enter the market, then they could become a formidable competitor. The competitive pressure coming from firms offering substitute products is very high. Substitutes are often attractive to consumers because they are readily available for a nice price. Consumers often become used to buying substitutes because they suffer very low cost when switching products. Competitive pressure...
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...Under Armour Case Study Source: Hogan, 2013 Table of contents Detailed Timeline 3 Business and Corporate Level Planning 4 Brief Summary of the Company Situation in their Competitive Environment, Issues they Face and Clear Problem Statement to Analyze 6 Key Leadership 8 Types of innovation and Evidence of Entrepreneurship 10 Global Presence and Effects 11 Ethics - Examples of Social Consciousness/Corporate Social Responsibility 12 Responsible Wealth Creation 14 Engagement and Plan Alignment & Corporate Culture 15 Wild Card 16 Internal Analysis 17 External Analysis 20 SWOT Analysis 24 Recommendation 27 Bibliography 33 Appendix 37 Team Member Roles 46 Detailed Timeline It all started in 1995 when Kevin Plank, the special teams captain on the University of Maryland football team, noticed that the cotton T-shirts he and his teammates wore underneath their pads were always soaked and filled with sweat (Under Armour, 2012). “There has to be something better,” he believed (Under Armour, 2012). That statement soon launched the performance apparel industry (Under Armour, 2012). That statement also became Under Armour’s generic strategy, which was to develop a better product than there was in the market. While Plank was perfecting his t-shirt after he graduated, he needed funds to launch his apparel line, so he maxed out his credit cards to the tune of $40,000 and set up a company in his grandmother’s basement in Washington, DC (Under Armour, 2012). In...
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...Patrick Hartrich ICM 409: Methods of Integrated Marketing Communications Due: 2/2/15 SWOT Analysis for Nike stores Strengths 1) Wide selection of products: each category has a variety of choices to choose from 2) Targets a number of age groups and genders, along with your fitness enthusiast and “average joe” 3) Perception of stylish workout attire, compared that of Under Armour and Adidas 4) Have store locations/headquarters all around the world 5) Many sports icons are associated with Nike and not their competitors Weaknesses 1) Nike has a diverse range of products, but their main income is dependent on the footwear market 2) Pricing vs that of Under Armour and Adidas 3) A majority of their income/revenue is generated from selling at retail stores instead of Nike stores 4) Very high advertising/endorsement costs; many large sports stars help create the brand they’ve become 5) Bad press for working conditions overseas; something Under Armour and Adidas hasn’t had Opportunities 1) Being a “fashionable” brand, there are many opportunities that Nike is exposed to 2) Nike has grabbed a majority of the younger age, we can reach out and get the elder folks too 3) Nike could build more globally than it already has; many more disposable income markets to hit other than the USA 4) Expansion into sport sunglasses and jewelry lines 5) Nike FuelBand can team up with phone apps so customers can keep track of their calories burned/points earned Threats 1) Sensitivity...
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...Corporate Histories History of Under Armour Under Armour is currently an athletic apparel, footwear, and accessory brand with the mission “to make all athletes better through passion, science, and the relentless pursuit of innovation” (Under Armour website). The brand was founded in 1996 by University of Maryland football player Kevin Plank in the basement of his grandmother’s house in Baltimore, Maryland. Based on his own athletic experience, Plank was inspired to create a sweat-wicking undershirt that did not get moisture-laden with sweat during games and practice. The company gained initial success with grassroots marketing among the athletic community. Under Armour did not reach mainstream consumers until the company’s products appeared in the 1999 film Any Given Sunday. It has continued to appear in other movies and television shows, and it has gained many athletic stars as spokespeople of the brand. Under Armour launched its first television advertisement, featuring football player Eric Ogbogu, in 2003. These marketing efforts have done well to expand consumer recognition of the brand’s initial product. Sweat-wicking shirts are now commonly known as “Under Armour” similar to the way tissues are now often just called “Kleenex.” With its evolving brand image, Under Armour has been able to expand beyond the athletic performance apparel market, which it dominated at 75% of market share in 2005. Following its initial public offering in 2005, which raised over $100 million...
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...Exhibit 1: PESTEL Analysis A PESTEL Analysis targets the components of strategic significance in the macro-environment and measure market potential for success or failure. From this case, we identify the analysis as follows: Factor | Trend | EvaluationO = OpportunityT = Threat | Impact1 = Low5 = High | Political | FDI Policies | T | 2 | Economic | - Increase in price of raw materials and resources- Growth of income- Chinese labor cost increasing | TOT | 553 | Social | - Consumers seek quality- Women desiring healthier lifestyle | OO | 33 | Technological | - Increase in E-Commerce | O | 4 | Environmental | - Complying with federal, state, and local environmental protection laws | T | 4 | Legal | - Customs and trade regulations | T | 4 | Exhibit 2: Five Forces Analysis of the Sports Apparel Industry Porter’s Five Forces Model depicts how intense the competition between the companies are and what specific factors relate to each force. The sports apparel industry is highly competitive and demanding. Many players exist in the game, which also increases competition. Rivalry: Moderate-Strong * Buyer demand is high and increasing (-): From 2006 to 2011, Under Armour’s net revenues tripled, starting at $430,689 and ending at $1,472,684 in 2011. These numbers are expected to continue to grow in years to come * Ease of brand switching (+): Other competitors such as Nike and Adidas typically price items in the same range as Under Armour * Product differentiation...
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...Chapter Internal Factor Analysis Strengths and Weaknesses (SWOT) D.1 Under Armour Corporate Structure Analysis Internal Environment Under Armour Corporate Culture Analysis Below is some of the corporate culture that Under Armour Implemented to the company * Founder’s Beliefs Kevin Plank as a founder of the under armor, since the beginning of his leadership, has always emphasized to each of its employees to always believe that the UA will evolve into big company. * Leadership Culture UA as the one biggest Company in sportswear certainly has a view to the future. To reach its goal in the future, UA needs a good leader. To support this Culture, UA create a Training program. * Team Oriented Culture Under Armour accentuate teamwork and collaboration than individual effort to create new product, teamwork and collaboration also give many input to create a great poduct. This also minimize risk in develop new product. * Hard Work Kevin Plank as a founder of UA, has a good work to increase the UA performance since the beginning. This causes the hard work of the Kevin Plank to reach their goals to make UA become biggest company in the sportswear. This culture also transferred to the employees, each employees of UA must have a passion to work hard to reach the company goals. * Innovation Culture UA ralize that company will growth with an innovation to compete with another company such as adidas and nike. With an innovation as a core strategy throughout the...
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