...Under Armour: Working to stay on Top of Its Game The following is an in-depth analysis of the company Under Armour. It has been one of the fastest growing productions, along with one of the top runners in the athletic apparel industry. The future of Under Armour remains unclear, but hopeful. There are many questions and issues that founder Kevin Plank and his executive leadership team must consider as the company moves forward; but analysts believe that the demand for Under Armour’s apparel products remain strong. Nike, Adidas, and Columbia Sportswear are all frontrunners against Under Armour in the industry. The first section of this report will cover an overview of the trends in, economics, political/legal, social/cultural-global, technology, and demographics. Economics Under Armour Company has been growing substantially. In 2008 its gross profit was $353,041, in 2009 it was $410,125, and in 2010 it only rose higher to $530,507. Its new income from operating expenses went up as well. In 2008 it was $38,229, in 2009 it was $46,758, and in 2010 it was $68,447. In North America and Canada, Under Armours net revenue in 2008 was $692,388, in 2009 it was $808,020, and in 2010 $997,816. In foreign countries it inclines as well. In 2008 Under Armours net revenue was $32,856, in 2009 it was $48, 391, and in 2010 it was $66,111. If the company follows this trend its profits are simply going to rise. Political/Legal The political and legal environment of Under Armour is greatly...
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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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...UNDER ARMOUR: A Financial Analysis Under Armour Overview Under Armour Inc. (UA) was founded in 1996 by Kevin Planks whose company mission was to provide a premium t-shirt more suitable for athletic activity. By attacking a niche market, UA was able to establish a strong foothold in the t-shirt and base layer-clothing business and has grown rapidly as a result. To diversify its portfolio and reach a larger target market, UA has expanded its product lines in recent years to include footwear and athletic accessories. Headquartered in Baltimore, Maryland, UA acts primarily as a wholesaler providing clothing products to other retailers throughout the world, such as Dicks Sporting Goods and The Sports Authority. With 75% of their sales coming from large scale distributors like those mention above, UA also operate their own Direct to Consumer business through their website, factory stores and specialty stores. While a majority of Under Armour’s business is generated in the United States, they also have international operations that include a separate headquarters located in Amsterdam and through a license agreement, in Japan. Under Armour outsources the majority of its product creation to manufacturers worldwide who are unaffiliated with the brand. Products distributed are manufactured by 22 different manufacturers in 17 different countries spread across Asia and Central and South America (UA 10k pg.7). UA also operates a Special Make-up Shop in one of their two distribution...
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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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...MQM 385 Summer 2008 Under Armour Strategic Analysis Team 2: Paul Huston. Ryan Marchand. Eric Webster. Rachel Eberle. Irén Ganèva. Lamar Wooley. Margaret Kobel. Table of Contents Executive Summary ___________________________________________________________2 External Analysis _____________________________________________________________3 Value Chain…………..…………………………………………………………………….3 Key Success Factors ……………………………………………………………………...7 Porter’s 5 Forces ……………...……………………………………………...…………..9 External Analysis Conclusion …………………………………………………………...12 Opportunities in the environment …………………………………………….....12 Threats from the environment …………………………………………………...14 Internal Analysis_____________________________________________________________16 Financials & Cash Flow Analysis ………………………………………………………16 Cash Position ……………………………………………………………………16 Financial Indicators ……………………………………………………………..16 Cash Flow ……………………………………………………………………….16 Internal Analysis Conclusions …………………………………………………….…….17 Strengths ………………………………………………………………………...17 Weaknesses ……………………………………………………………………..17 Competitive Strategies ________________________________________________________19 Current Corporate Strategy ….………………………………………………………..19 Integration position ……………………………………………………………...20 Diversification position …………………………………………………………21 Current Business Strategy ….…………………………………………………………23 Product positioning ………………………………………...………...…………23 Current Functional Strategy …….…...
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...______________________________________________________________________________ Under Armour Enters the Basketball Shoe Market ______________________________________________________________________________ This case was written by Professors George E. Belch and Michael A. Belch. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources. Company Background Under Armour (UA) was founded in 1996 by Kevin Plank, a former Maryland football player, who began by selling compression clothing that could “wick” sweat away from the body to college sports teams out of the trunk of his car. Plank was a football player at the University of Maryland, and hated wearing cotton shirts to practice in the hot, humid Maryland climate. Knowing that he would never be an NFL player, Plank devoted his efforts to starting a company that could make a product that would be an improvement over cotton, in that it would not absorb sweat and be much more functional and comfortable to wear. Once made, he started selling the shirts to the lacrosse and football teams at the University of Maryland out of the trunk of his car. In 1998, the football oriented movie “Any Given Sunday” was being filmed in Baltimore where Under Armour is based. The producers of the movie were looking for a product that would represent...
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...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 samples, Plank create is first prototype. The first prototype he created was given to old teammates at Maryland and friends who...
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...Under Armour first quarter of the New Year started out with a bang. According to the financial reports released at the end of the first quarter, Under Armour experienced a growth of about 36% in net revenue (Under Armour 1). There are many reasons as to the tremendous quarter growth of the company, but it is Under Armour’s motto: “innovation around fit” that makes this company and its products unique in the sports world. The company developed new products that have made them stand out in new sports markets, such as baseball and football. In 2014, Under Armour released a new performance shoe line called UA SpeedForm, which according to their 2013 Annual Report, “is the first true performance running shoe made entirely in a clothing factory and is a game-changing innovation that has unlimited potential” (Annual Report) By creating innovation in their products and on the field, Under Armour is paving way for higher net revenues every quarter. Under Armour currently is changing the way they distribute their products. The usual line of distribution for the company is wholesale, comprising 68% of its net revenues (Annual Report 4). While this composes the majority of the company’s net revenue, Under Armour is venturing into the direct to consumer channel through their factory house stores. Here is where the consumer can experience the brand that is Under Armour. Under Armour’s plan to further expand the business is to venture out into more international markets. Currently, Under...
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...1. What are the strategically relevant factors in the macro-environment (PESTEL analysis)? Strategically relevant factors in the macro-environment consist of: social, technological and legal forces in the case of Lululemon Athletica, Inc. Social Factors: This includes that of lifestyle, and the want and need of living a healthy lifestyle. Evidence in the case points to people over the age of 60 who are looking to lead a healthier life and to live longer. This becomes a demand in the market, leaving a space for companies to fill in the supply. There was also an increase in the purchase of athletic wear not only for fitness activities but to simply give a perception of a healthy lifestyle, which in turn increased demand for these products. Technological Factors: Technology plays a key role in the industry and thus drives the creation of new fabrics that lead to a better design for athletic attire. Trademark fabrics such as luon, luxtreme and silverescent all have different specifications that would address the different needs of consumers in the market. Advances in market intelligence allow companies to track trends in the market and consumer behaviours. Changes in shopping habits also become relevant, not only with trends but also with the growth of e-commerce and the convenience of purchasing anything online in the matter of seconds. The desire to be able to shop online has become a growing industry, leaving consumers with the satisfaction to shop at any time and place. Lululemon...
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...Will Lululemon Athletica Become the Next Top Brand? Christopher Boyken MGT 4013 April 24, 2012 Executive Summary Lululemon was founded by Chip Wilson in 1998. The company started out in Canada with several stores where the company eventually grew to 165 stores in Canada, United States, Australia and China. The industry in which Lululemon competes in is fitness apparel, with competitors such as Nike, Adidas, Under Armour, and Champion. The fitness apparel industry is very attractive with an ever growing increase in the amount of individuals choosing to lead a healthier life. Lululemon holds a good position in this industry and have room to grow in the future to gain an advantage over its competitors. The way Lululemon has been executing its strategy is a key factor to how well the company has been performing the past years. Although the company’s performance has been outstanding recently, there is a strategic issue in which Lululemon should try to deal with, and this is advertising. There is a couple of action plans that can be implemented and help fix the strategic issue Lululemon faces. Lululemon is a growing company that has a promising future and will continue to attract numerous investors. Table of Contents Introduction (Needs and Purposes) 4 Strategic Posture 5 Brief History 5 Core Values 5 Mission Statement 9 Vision Statement 9 Business Definition 10 Broad Goals 12 Smart Objectives 14 Key Functional...
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...Promotional and Advertising Strategies Nike and Under Armour Contemporary Business BUS08 December 6, 2014 Promotional and Advertising strategies are similar but at the same time very different. The advertising strategy is designed to sell a product. It is basically one way communications from the company to the consumer. This provides the consumer information to make a purchasing decision (Schermerhorn, Osborn, Uhl-Bien, & Hunt, 2012). Where as a promotional strategy is two way communications designed to increase sales and attract new customers. This is can be referred to as Branding. One key difference is promotional strategies give away something; this could be a free product or money off attracting consumers who would not be attracted under normal circumstances. This paper will investigate two top athletic apparel companies to understand their strategies. The two companies chosen for this project are Nike Incorporated and Under Armour. These two companies are two of the leading sports apparel companies. Both of these company’s focus their products on the athlete and specific sports. Nike Incorporated has been in business since 1964 and has a much longer history in the industry than Under Armour (UA) which joined the picture in 1996. Both companies make a variety of athletic apparel and a number of athletic shoes. This project will provide details on how each company compares in the athletic shoe market. 1. Compare and contrast the promotional strategies...
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...website: Natalia Closing of Sale: Nathan Retail site preference: Worked together as a group First Run through Editing: Jennifer Second Run Through Editing: Natalia References: Jennifer, Jim and Jeffrey Retailers for Running Shoes Why Footwear Retailing? The athletic footwear market is an ample industry that continues to grow. In 2011, the athletic footwear market was valued at $74.7 billion and is projected to reach $84.4 billion by 2018 (Team, 2013). Yet more than ever before, it seems the functionality of athletic shoes is not enough to sell the product. Today, consumers also want to make fashion statements with their footwear. This trend is present among professional athletes. The four online retail websites Nike, Adidas, Under Armour and Puma commands a strong foothold in the market. These retailers were chosen because they have a significant influence in the athletic footwear market, resulting from their names being synonymous with sports. Nike has contracts with many of the top athletes in the world, such as, Lebron James, Kobe Bryant, and Tiger Woods. These athletes help promote and use Nike’s products exclusively....
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...CONNECT FEATURES Interactive Applications Interactive Applications offer a variety of automatically graded exercises that require students to apply key concepts. Whether the assignment includes a click and drag, video case, or decision generator, these applications provide instant feedback and progress tracking for students and detailed results for the instructor. Case Exercises The Connect platform also includes author-developed case exercises for all 12 cases in this edition that require students to work through answers to assignment questions for each case. These exercises have multiple components and can include: calculating assorted financial ratios to assess a company’s financial performance and balance sheet strength, identifying a company’s strategy, doing five-forces and driving-forces analysis, doing a SWOT analysis, and recommending actions to improve company performance. The content of these case exercises is tailored to match the circumstances presented in each case, calling upon students to do whatever strategic thinking and strategic analysis is called for to arrive at a pragmatic, analysis-based action recommendation for improving company performance. eBook Connect Plus includes a media-rich eBook that allows you to share your notes with your students. Your students can insert and review their own notes, highlight the text, search for specific information, and interact with media resources. Using an eBook with Connect Plus gives your...
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...disagreement between the competitor A and the channel distribution 7.0 Channel strategy factors 8.0 Conclusion and Recommendations 9.0 References 1.0 Executive Summary Today’s business world has become much competitive that requires continuous and visible effort to get and retain customers. Companies are increasing focus on sales and marketing. Businesses need to decide which customers to target. Businesses need to work out how they will reach and win new customers. Businesses need to make sure that they keep existing customers happy. And they need to keep reviewing and improving everything in order to stay ahead of the competition. Therefore businesses need to develop appropriate marketing strategies which allow them to move forward. This is a marketing strategy report. First part will identify and explain the best analysis for two competing cosmetic brands (Competitor A and B) which consists of eight products from four product lines. In this section SWOT analyses of two competitors’ product lines will be given. Second part will analyse and map those products with aid of product life cycle and BCG matrix. These models will be discussed briefly with justifications. Third section will talk about the best product, pricing, promotional and placing strategies for each and every type of products in both companies. In addition to this a...
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...Harvey Wiley, Theodore Roosevelt, and the Federal Regulation of Food and Drugs By Anthony Gaughan Food and Drug Law Mr. Peter Barton Hutt Harvard Law School Winter 2004 Introduction In 1906 Congress passed two landmark pieces of legislation: the Pure Food and Drug Act and the Meat Inspection Act. The acts emerged from the reformist ethos of the Progressive Era, a time when the federal government took on a new and much more active role in the everyday lives of ordinary Americans. Of all the laws passed during the Progressive Era, no legislation proved more successful and more enduring than the 1906 food and drug legislation. The acts established the foundations of modern American food and drug law, and gave birth to the Food and Drug Administration. For the first time, the federal government assumed permanent and comprehensive responsibility for the health and safety of the American food and drug supply. Although the statutes have been revised many times since 1906, the essence of modern food and drug law remains consistent with the principles of federal responsibility for consumer safety that underlay the first statutes a century ago. The passage of the 1906 food and drug legislation stemmed from the actions of many people across the political landscape, ranging from Senator Albert Beveridge to socialist writer Upton Sinclair. But no indi- 1 viduals played a larger public role in the passage of the Meat Inspection Act and the Pure Food and Drug Act than Theodore...
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