Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Under Armour Analysis

No description
by

on 10 December 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Under Armour Analysis

2002-2005
Purchased old Proctor and Gamble facility for new HQ
"Protect This House" campaign created
Signed first all school deal with University of Maryland
UA Women, kids, Golf, and Outdoors all put on the market
Went public on Nov. 18, 2005 and doubled initial offering in first day
Under Armour
Human Resources
HISTORY
Kevin Plank
"There must be something better."
Leadership
Only
$17000

in sales the first year.
(Just hit $2 billion in November)
Strategy
Under Armour's Objectives
20% yearly growth- Nike is at 8% each year
By 2020, Under Armour will be worth 10 billion dollars
Growth in other countries
Company Strategy
-"To make all athletes better through passion, design, and the relentless pursuit of innovation"
Training
Corporate
UA 101
History
Head of Departments
Protect This House Workshop
Goal Setting Workshop
Manager Tactical Training
Diving In- Lack in formal training

Employee Information
6200 employees
1400 corporate
Non Union
No formal diversity program
Currently working on a program
Under Armour currently uses affirmative action
Corporate Culture
Ethical/ Social Responsibility
Benefits
Stock Options
Compensation
Policies
1996-1998
Created first shirt, #0037, at 23
ColdGear and AllSeasons fabrics introduced
Moved into first warehouse and HQ
Kevin Plank- CEO
Brad Dickerson-CFO
Kip Kulks- COO
John Rogers- SP
Store
UA 101
Training is determined by manager

Income Statement
Nike
Balance Sheet
Under Armour
Nike
Adidas
401 K- 5% Match
90 Days
50 % Product Discount
Offers Health, Dental, Short and Long Term Disability and Flexible Spending
80-97% of the costs associated with health care premiums
100% of the cost of wellness and preventive
100% of the cost of short/long term disability and EAP

Cash Flow Statement
Under Armour
Nike
Stock Purchase Program for employees
Pre-taxed and 15% discount
Director Level Employees
Offered restricted stock
4 years-1000 shares
Voluntary- Death, Disability, Life Insurance
No post retirement benefits, 403 B, SEP, or IRAs.
Considered better than Nike
RESPECT THE UGOP (UNIVERSAL GUARANTEE OF PERFORMANCE).
Build great product, tell a great story, provide great service, and build a great team.
INTEGRITY.
NO ONE PERSON IS BIGGER THAN THE BRAND – TEAM.
MAKE ONE DOLLAR SPEND LIKE THREE (CREATIVITY)
HELP OTHERS.
WALK WITH A PURPOSE.
PROTECT THE UA CULTURE, BUT EMBRACE CHANGE.
BE HUMBLE AND STAY HUNGRY.

Executive Comp
Depends on the financial performance of the previous year
salary
an annual cash incentive award based primarily on the annual performance of the company
equity awards, including our annual performance based equity award with vesting tied to the
performance of the company; and
minimal benefits and perquisites.

Deferred Comp
50 cents on the dollar up to 6%

Green

Cheer building is LEED certified and they are working towards making everything LEED certified
Largest green wall in America
Use water bottles to make clothes (Website and Dick's Sporting Goods Exclusive)- 4 bottles to 1 shirt
In 2010, Under Amour helped create the east coast’s first LEED certified habitat for humanity house in West Baltimore

Very laid back, casual environment
Demographics-60% men, 31-average age, and majority are previous athletes
Nike is very similar
The Company views its commitment to ethical business conduct very seriously.
The Company will take disciplinary action against those who violate these Company policies and procedures, up to and including immediate termination.
Harassment or victimization of the complainant will not be tolerated.
Every effort will be made to protect the complainant's identity.
Commited to fair treatment of employees and providing a safe working enviornment
Mentors of students in the Baltimore area with Big Brothers Big Sisters of Central Maryland and the Maryland Mentoring Partnership
Other charities include Power of Pink, Ronald McDonald House, UA Freedom, The V Foundation, Habitat For Humanity, The Boomer Esiason Foundation, and much more
Sits on Board of Trustees for:
University of Maryland
Start Up America
National Football Foundation
the Board of John Hopkins Medicine
the Greater Baltimore Committee
1999-2001
All UA products in Any Given Sunday
$750,000 increase in sales
Began partnerships with NHL, MLB, and Baltimore Marathon
2006-2010
Click-Clack campaign launched first footwear
Signed Ray Lewis, Lindsey Vonn, and Brandon Jennings
Signed Michael Phelps and Tom Brady
First year with $1 billion in revenue
Sales Volume
Created first trainers and entered shoe market
Stock
2010-2013
Opened first retail store in China
Official technical partner to the Tottenham Hotspurs
$2 billion in revenue reached
Acquired MapMyFitness as of November 14, 2013
Where it's Traded &
Authorized Shares
Competition
TIMELINE
Location, Location, Location
Baltimore, Maryland
Tax breaks, family, and University of Maryland.
Product Introductions
1998:
Original #0039 Compression Shirt & Original ColdGear Mock
2009:
Recharge Suit
2010:
Team USA Bobsled Speed Suit; UA Coreshorts with X Band Technology
2011:
Armour39 Compression Shirt; Charged Cotton; Charged Cotton Storm; coldblack
2012:
Armour Bra; UA HIGHLIGHT Cleat
2013:
UA Spine Venom Running Shoe; Team Canada Winter Olympics

Legal Issues
*Warrior Sport takes Under Armour to court for trying to use its plans when a former Warrior Sports employee brought their plans/blueprints with them to their new job at UA (2012).

*Under Armour sues Nike over use of “I Will” slogan, saying it infringes on their trademark rights (2013).

Global vs. Domestic
Under Armour
Sales and Marketing

Nike
Adidas

Acquisition/
As of November 14, 2013, Under Armour has officially acquired MapMyFitness, their first acquisition ever.
Development and entrance into the footwear market
Signing big names, i.e. Michael Phelps, Lindsey Vonn, and newest addition, golfer Jordan Spieth
Reaching $2 billion in revenue
Signing Tottenham Hotspurs (biggest deal to date)
Major Impacts
Under Armour Board Of Directors
Kevin Plank:
CEO and Chairman of the Board
Douglas E. Coltharp:
Executive Vice President and Chief Financial Officer of HealthSouth Coporation
Byron K. Adams, Jr:
Chief Performance Officer
A.B. Krongard:
Former Chief Executive Officer and Chairman of Alex.Brown, Inc.
Anthony W. Deering:
Former Chief Executive Officer and Chairman of The Rouse Company
William R. McDermott:
Co-Chief Executive Officer and Executive Board Member of SAP AG
Eric T. Olson:
US Navy (Retired) and Former Commander of the US Special Operations Command
Thomas J. Sippel:
Partner at Gill, Sippel, and Gallagher
Harvey L. Sanders:
Former Chief Executive Officer and Chairman of Nautica Enterprises, Inc.
STRENGTHS
adidas
long time heritage and brand value
sponsors major events (Olympics)
worldwide presence
diversified product
strong and innovative marketing
Under Armour
Brand equity
Quality
Professional and College endorsements
Innovation
First Mover Status
Customer Loyalty
Brand niche
Nike
Global brand
Strong R&D
Linked to some of the best atheletes
Long time heritage
Loyal customers
adidas
Costly products
Stiff competition
High brand switching
WEAKNESSES
Net Income
Stockholder Equity
*Figures from income statements (yahoofinance)
*Figures from balance sheets (yahoofinance)
Price to Earnings Growth Ratio
Return on Assets
Return on Equity
Gross Profit
Asset Turnover
Retained Earnings
Long Term Debt
Under Armour has agreements with various lenders to finance the acquisition and/or lease of qualifying capital investments.
Limit: $40 Million additional financing
2012- $11.9 million
2011- $14.5 million
Outstanding Loan Balance
Interest Rates
2012- 3.2%

2011- 3.5%

2010- 5.3%
Recent Loan Agreements
July 2011- $38.6 million loan secured by mortgage in connection with the acquisition of the new corporate headquarters
December 2012- Repaid balance of previous loan ($37.7 million) & secured a new $50 million loan collateralized by land, buildings and tenant improvements
Working Capital
Under Armour funds its working capital through cash flows from operating activities, cash & cash equivalents on hand and borrowings available
Under Armour's working capital generally reflects seasonality and growth in business; as it recognizes a majority of its revenues in the back half of the year
SEC Filings
10-K Annual Report 2/25/13
10-Q Quarterly Report 5/1, 8/6, 11/5/13
8-K Results of Operations 10/24/13
and Financial Condition
8-K Change in Directors 10/8/13
or Principal Officers
Filing
Description
Date Filed
Outstanding Shares
Under Armour
105.63 Million Shares Outstanding
94.5% held by institutions
5.39% held by insiders
Nike
889.56 Million shares outstanding
83.6% held by institutions
0.24% held by insiders
Adidas
418.43 Million shares outstanding
Insider/ institution information unavailable
Price Ratio
Trailing P/E
Under Armour
Nike
Adidas
58.30
26.64
37.05
Under Armour's stock is trading at about 58 times its earnings
Initial Public Offering
Under Armour
$13/share
11/18/05
12,124,000 offered
Nike
$2.87/share
12/2/1980
2,377,000
Stock Splits

July 9, 2012
-
Under Armour completes a 2-for-1 stock split of its outstanding common stock. The split occured in the form of a dividend of one share of Class A common stock for each share of Class A common stock outstanding; and the same for Class B common stock.
Dividend Ratio
*Under Armour does not distribute dividends
Share Value
Stewardship of the Stock
Fidelity Contrafund
T.Rowe Price Growth Stock
Fidelity Advisor New Insights
Baron Growth Retail
Wells Fargo Advantage Growth Inv
5,096,378
2,913,600
2,902,435
2,400,000
1,450,000
4.82%
2.76%
2.75%
2.27%
1.37%
Fund Name
# Shares
% Held
Would You Own the Stock?
Under Armour's stock price has been consistently increasing since its initial offering in 2005 and is up 70% in 2013
Under Armour has a major opportunity to expand globally & company leadership plans to continue to build a global presence
Under Armour's earnings and profits have increased consistently on a year-to-year basis.
Under Armour is well known for its innovative products along multiple lines making it a great LONG-TERM BUY & HOLD
Amy Adams, Alexandra Djokovich, Sam Morice, and Dave Zelvis
Ethical
Social
FINANCE
2010- $406.7 Million
2011- $506.1 Million
2012- $651.4 Million
Timeline of Stock

Founders
Bill Bowerman and Phil Knight
University of Oregon track and field coach and middle distance runner at the University of Oregon
Knight wrote a proposal for better running shoes and Bowerman partnered with him and shared his designs with Knight
Mission/Vision-
"TO BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE* IN THE WORLD"
*-Anyone with a body is an athlete
Objectives
Seeking growth in things that are sustainable, profitable, capital efficient and brand enhancing
become greener by achieving 20% reduction in CO2 emissions per unit
Company Strategy
Make today better by taking account of our impacts and redefining business performance for the better
Design the future by unleashing innovation, embedding sustainability into our approaches to product and manufacturing
Nike
Addidas
Mission/Vision-
"The Adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position"
Objectives
“Route 2015”- the plan aims at growing the business of the entire adidas Group compared to the expected 2010 results by 45% to 50% to € 17 billion in 2015.
Company Strategy
"One Team, one goal: pushing boundaries through innovation and achievements"

Under Armour
Nike

48,000 employees
Non-Union
Nike offers different diversity networks for their employees, including the Asia Pacific Employee Network, the Latino Employee Network and more.
Does not use affirmative action
Adidas
46,306 employees
Non-Union
Adidas offers diversity day, which celebrates the cultures of the company
Does not use affirmative action
Adidas
"Our culture is continuously shaped by the past and the present, as well as our aspirations for the future. We foster a corporate culture of performance, passion, integrity, and diversity by creating a work environment that stimulates innovation, team spirit, and achievement based on strong leadership and employee engagement"

Mainly Athletes Work There
Adi Dassler
"Our Green Company vision is to become a zero-emission company by:Embedding environmental best practice in everything we do, maximising environmental efficiency gains, and supporting and harnessing our people’s passion for a greener planet"
Green Teams
Green Energy Fund
Adidas

Started in a small town in Bavaria, Germany in 1924 when Dassler registered his "Gebrüder Dassler Schuhfabrik".
Nike

Uses green materials in their shoes
Environmental Apparel Design Tool
Material Analysis Tool (MAT)
Reuse-a-shoe program
Not as green as the other companies
His own brother formed Puma after some disagreements and World War II.
Green Options

Stock Options
Nike

Employee Stock Purchase Plan (Pre-Taxed/ 15% discount)
Same as Under Armour
Executives are offered stock as part as their compensation plan

Adidas

Does not offer information about stock options
Benefits
Nike
Adidas
Health, Dental, Vision insurance
Life & Accident insurance
Long/short Disability insurance
401 K Plan-matches a portion
Paid vacations and holidays
Product discounts
Onsite fitness center/fitness discounts
Transportation allowance/discount
Tuition assistance
Adidas
-1924: Adi Dassler made his first sport shoe in his mother’s laundry room.
-First two gold medals in Amsterdamn and Berlin Olympics in 1928 and 1936.
-1967: The Franz Beckenbaur Tracksuit is introduced (first piece of clothing)
-1970: Became the OFFICIAL BALL TO EVERY WORLD CUP
-1972: Adidas symbol is born
-1986: Run DMC releases “my adidas” and non-athletic promotions took off
-1993: “WE KNEW IT THEN, WE KNOW IT NOW”
-1996: adidas goes public
-1997: adidas acquires Saloman group
-2006: Reebok is acquired
-2011: Acquired FiveTen, outdoor specialists and TaylorMade became the leading golf equipment company in the world
Nike
-1958: Bowerman and Knight become partners after meeting a University of Oregon
-1965: Jeff Johnson was brought onboard
-1972: Debuted Nike footwear at U.S. Track and Field Trials
-1973: Partnered with Prefontaine
- 1985: Michael Jordan is signed
-1987: Nike Air Max introduced
-1989: Nike reclaims it’s spot as Number One
-1995: Nike signs entire Brazilian National soccer team
-1996: Nike signs US Men and Women’s soccer teams
-1997: Tiger Woods wins Masters and Nike becomes a golf industry leader
-2002: “Secret Tournament” campaign
-2012: Official sponsor of the NFL

NIke

''At Nike, we want an open and creative culture that harnesses diversity and inclusion to inspire ideas and ignite innovation. To achieve this, our diversity and inclusion strategy focuses on three foundational priorities. We’ve worked with more than 5,000 employees who now have new and creative ways to leverage their teams’ diversity as they approach their work."
"100 BEST COMPANIES TO WORK FOR"

Similar to Under Armour


Corporate Culture
Employee Information
TIMELINE
Location, Location, Location
Portland, Oregon
Bring it back to the roots, tax breaks.
Product Introductions
Legal Issues
*Sweatshop Lawsuits
*Brett Gaudreau sues Nike over injuring knee while wearing Nike Shox Devlier shoes
*Race Discrimination Lawsuit
*Child Labor

Acquisition/
Acquired Converse in 2003 for $305 million
Acquired Hurley, LLC in 2002 for undisclosed amount
Introduction of Air Max
Signed Michael Jordan and Tiger Woods
Signed deal with NFL to be sole sponsor as of 2012
Major Impacts
Nike
Location, Location, Location
Herzogenaurach, Germany
Adi Dassler's hometown, where they started.
Product Introductions
1924: Gebrüder Dassler Schuhfabrik
1949: 3 Stripe Sneaker
1954: Screw- In Pin Cleats
1967: Franz Beckenbauer tracksuit
1970: TELSTAR soccer ball
1984: Micropacer
1989: Torsion
1994: Predator football boot
2002: ClimateZone
2004: adizero
2013: Energy Boost
Legal Issues
* Lightweight basketball sneaker causes ligament issues
* ADD A ZERO vs. ADIZERO
* University of Wisconsin lawsuit for lack of severance pay to Indonesian workers
* Adidas vs. Walmart for 3 stripe infringement

Acquisition/
Acquired Saloman group in 1997, including Saloman, TaylorMade, and Mavic & Bonfire
Acquired Reebok in 2006 and Saloman leaves (except TaylorMade)
Acquired FiveTen in 2011
Acquired Adams Golf in 2012
Huge deal with CROSSFIT
First two gold medals
Official FIFA Ball
Run DMC "my adidas"
Major Impacts
Adidas
Health Insurance (Medical, Dental, Vision & Prescription Drugs)
Retirement Plans (Pension/401K)
Supplemental Insurance (Disability/Life/Accident)
Vacation & FlexiTime programs
Personal trainers
Free language courses
Wellness support
Daycare in selected locations
Company cafes
Commuter Programs
Bicycle share programs
"To reach their personal best, our Group employees are offered a wide variety of training and development opportunities, building on their strengths, improving their skills and overcoming their own challenges"
Adidas
Nike
"We provide extensive safety training to employees based on the type of job they do and the level of risk associated with that job"
Rookie Camp
9 day program
Videos about history
Shadowing

1959: First 300 shoes distributed
1972: Original Nike footwear introduced with "waffle" technology
1985: Air Jordan
1987: Air Max
1989: Cross Trainers
1996: Nike Golf
2000: Nike Shox
Strategy
Nike Board Of Directors
Adidas Board of Directors
Phillip H. Knight:
Chairman
Mark G. Parker:
President and CEO
Elizabeth J. Comstock:
Senior Vice President and CMO of GE
John G. Connors:
Partner in Ignition Partners, LLC
Timothy Cook:
CEO of Apple
Alan B. Graf:
Executive Vice President and CFO of FedEx Corporation
Douglas G. Houser:
Partner in Bullivet, Houser, and Baily
John C. Lechleiter:
President, CEO, and Chairman of the Board for Eli Lilly and Company
Jonathan Rogers:
President and CEO of TV One, LLC (retired 2011)
Orin C. Smith:
Director of Board at Walt Disney; President and CEO of Starbucks (2000-2005)
John R. Thompson:
1988 US Olympic Basketball Team Coach
Phyllis M. Wise:
Vice President and Chancellor of University of Illinois

Nike
Varied reputation (sweat shop links)
Price sensitivity
Percieved as expensive
Under Armour
Pricing
Advertising
Brand Awareness
Brand Personification
Customers Narrow Focus
OPPORTUNITIES
THREATS
adidas
Generate over 60 new foot friendly designs each year
More stylish designs and cuts
Brand building through sports academies
Nike
NIKE’s good name and reputation result in large part from our collective actions. That means the work-related activities of every employee must reflect standards of honesty, loyalty, trustworthiness, fairness, concern for others and accountability.
NIKE will comply with all applicable laws regarding campaign contributions, lobbying, and ethics
standards that apply to dealings with public
officials and government employees.
All employees are responsible for creating and maintaining a work environment free from harassment or other inappropriate behavior.
The Nike Foundations- working to end poverty


Nike
Product Development
Accessory Department
Global Marketing
Under Armour
International expansion
Pricing Tiers
Consumer lifestyle improvement
Focusing on all sports
License technology to other companies
Adidas
Pirated/fake products
Substitute products
Nike
International trade
Competitive market
Substitute products
Under Armour
Male dominant focus
Nike/Adidas have longer history
Similar technologies
Substitute products
PESTEL
Political:
Currency Exposure Risk (T); Comeptitive International Market (T)
Economic:
Increase in shipping cost (T); Performance shoe industry growth (O); Brand Equity (O); Overseas Manufacturing and Outsourcing (T)
Social:
Quality over price (O); Health conscious (O); Sports particiation (O)
Technological:
Electronic commerce (O); Mobile commerce (O); Social media marketing (O)
Environmental:
Green technologies for products (O); Marketability of being green (O)
Legal:
FDI policies (T)
Adidas
"Accordingly, all employees are expected to act with fairness and responsibility as well as in compliance with the laws and regulations while carrying out their tasks"
It is our responsibility as a member of each community to act as a true corporate citizen and we are committed to doing this through a range of programmes and activities including corporate giving, volunteer work and community relations programmes.
Soles4Souls- donates shoes to countries that need them


Research and Development
Nike

Adidas
Under Armour
Nike

Adidas Group
Nike
Maxims

Maxim 1—
It Is Our Nature To Innovate

Maxim 2—
Nike Is A Company

Maxim 3—
Nike Is A Brand
Maxim 4—
Simplify And Go

Maxim 5—
The Consumer Decides
Maxim 6—
Be A Sponge
Maxim 7—
Evolve Immediately
Maxim 8—
Do The Right Thing
Maxim 9—
Master The Fundamentals
Maxim 10—
We Are On The Offense. Always
Maxim 11—
Remember The Man
Adidas
Authentic:
Adidas is the first genuine sports brand. We were founded by a true athlete whose one guiding principle was to make equipment that makes athletes better.
Passionate:

Passion is at the heart of sport and of every true athlete.
Innovative:

There is continuous innovation in every area of our business
Inspirational:

Being inspirational helps build and maintain relationships with the athletes we support.
Committed:

Our commitment to our athletes and sport is uncompromising, unwavering and forever.
Honest:

At all times and in all relationships, adidas is genuine, ethical and fair.
Suppliers
Market Share
Received Shares
Under Armour: Has not participated in buying back shares
Nike: 2013, Nike repurchased 4.9 million shares for $253 million as part of its new four year long $8 billion share repurchase program. At this rate, the company continues to retire approximately 2% of its shares outstanding per year.
Adidas: Between January 30 and October 22, 2008, adidas AG (European Traded) repurchased a total of 10,182,248 shares at an average price of € 40.21. This represents 5% of the stock capital at the time the program started.
Gross to Net Comparison
Internet Sales
CRM Methods
Under Armour
Email Database
Special Product Display Rooms for Wholesale Buyers and Big Accounts
Our Mission is clear: Make All Athletes Better. If you're not 100% satisfied with your gear, exchange or return it for a full refund. Anytime. Any reason. Guaranteed.
Nike
Adidas
Adidas Group is committed to delivering outstanding customer service, providing their retail partners with the support and tools to establish and maintain a mutually successful business relationship. Customer relationship management is not only a key activity for their sales force but also of highest importance to the Group’s top executives and second – line management.
Nike wants to represent the highest service standard within and beyond their industry, building loyal consumer relationships around the world.
No Customer Problem is Too Small to Address
Logistics
Under Armour
Nike
Nike Logistics Y.K.
Adidas
5,363 employees
In House IT Logistics
Global Presence
Enterprise Management (ERP)
Under Armour
Nike
Adidas
Past ERP Problems
Igor Landau:
Chairman
Sabine Bauer:
Deputy Chairwoman
Willi Schwedtle:
Deputy Chairman
Dieter Hauenstein:
Deputy Chairman of the Works Council
Dr. Wolfgang Jaeger:
Mananging Director of Hans-Blockler-Stiftung
Dr. Stefan Jentzsch:
Partner, Perella Weingber Partners UK LLP
Herbert Kauffmann:
Management Consultant
Roland Nosko:
Trade Union Official, IG BCE
Alexander Popov:
Chairman, RFSO "Lokomotiv"
Hans Ruprecht:
Sales Director Custome Service, adidas
Heidi Thaler-Veh:
Member of the Central Works Council
Christian Tourres:
Former Member of Executive Board, adidas
First Mover Status
Differentiators & Competitive Advantage
Nike
Adidas
Under Armour
NSRL: Nike Sport Research Lab
Lab scientists focus on physiology, biomechanics, perception and athlete performance to inform product development.
Creating innovative products to meet the needs of both professional and everyday atheletes by focusing on customisation, digital sports technologies, and sustainable product innovation
Opened new research center at the headquarters in early 2013 called the Innovation Lab
*First company to produce sweat wicking fabric in a tight fitting tshirt for athletes
Under Armour
*First (US) company to specialize in sneakers made especially for track runners
Nike
*First company to create soccer cleats with screw in pins
*First company with signature mark (3 Stripes)
Adidas
Under Armour
Nike
Adidas
*Under Armour was the first company to create original sweat wicking fabric and has kept creating more innovative fabrics and accessories (i.e. ColdGear, ColdGear infared gear, HeatGear)
*The oldest in the business and, one of the only companies run out of another country.
*To put it simply, the quality and brand loyalty is like no other.
Technology Infrastructure
Under Armour
In house
Effectively manage and maintain inventory and internal reports
Ship products to customers and invoice them on a timely basis
Corporate services costs increased $15.7 million to $114.3 million, 2013
Nike
IT Team
Servers, Storage, Network, End User Computing, Mobile Devices
Adidas
Global IT Center of Excellence Infrastructure
Outsourcing Policy
Under Armour
95/98% of product is built outside the US
No child labor or other factory issues
Why outsourcing?
Nike
All production is outsourced
Huge unique strategic manufacturing outsourcing structure
Faced harsh criticism in early 90s for their factory conditions
Established a department to improve the lives of factory laborers
Adidas
Outsource almost 100% of production to independent third party suppliers
Primarily in Asia
Minimize cost
Have faced criticism as well
Advertising Methods
Under Armour
Utilizes advertising, direct marketing, sales promotions, and public relations
Television commercials
Primary target market is football players
Advertises on their official web site and in sporting goods catalogs
Sponsorships
Nike
Magazine ads
TV commercials
Website
Online campaigns
Adidas
Same Advertising methods as competitors
Commercials with professional athletes
Run-DMC made a song called "My Adidas"
Store branding
Sponsorships
BRAND IMAGE
Rewards and Incentives Programs
Under Amour
Primarily for Corporate Sales Teams
Salary Increases
Bonuses
Nike
Long Term Incentive Plan
Recognize and reward on a long-term basis selected employees of the Company and its subsidiaries for their contributions to the overall profitability and performance of the Company; and qualify compensation under the Plan as “performance-based compensation”
Adidas
Long Term Incentives Plan
Bonus programme
In order to allow our employees to participate in the Group’s success, and to reward them for their target achievement, we have implemented a Global Bonus Programme. This programme combines individual performance and corporate performance
Under Armour
Media Usage
Under Armour
Social Media: Twitter Facebook
Core target audience of 13 to 24 year-olds and enlist companies to participate (and talk about) the UA brand
“Ultimate Intern Program”
Nike
Previously outsourced social media department
Now have an In House team
Reduced spend on television and print advertisements by 40 per cent over the last three years
Nike Plus and third party platforms
Under Armour
Adidas
Adidas
In House
Have social media guidelines for all employees to follow
Television and print ads are becoming less and less of ad campaigns
Adidas Challenge
Media Budget
Under Armour
12% of Net Revenue
Nike
Adidas
Majority has shifted to internet
Radical shift in allocating the company’s marketing budget, 13%
Adidas
Under Amour
Durafit (Korea)
- Compression wear, Under Armour, Skins, dry fit.
Shanghai Lita Import&Export Co.,Ltd (China) -
sports wear, apparel, garment, clothes,
Lita Co.,Ltd. (USA), Wuxi Centeral (Zhenxin) Textile Co.,Ltd (China) -
stretchable fabric, swimfabric, lingerie fabric, satin, mesh, suede
Nike
NIKE24K TRADE Co.,LTD, Joyline Trade CO.,LTD., Ardike International Trade Co.,Ltd
Adidas
Ulysse Trading (UAE), Yongchuang Trade, Primashoes Industrial Co., Ltd, Fly-trade.Co.Ltd
Value Chain
Nike
Under Amour
Adidas
Global Presence
UNDER ARMOUR
European Headquarters: Amsterdam Olympic stadium
Additiona Offices: Hong Kong, China
Jakarta, Indonesia
Toronto, Canada
Guangzhou, China
NIKE
Argentina, Australia, Austria, Belgium, Bermuda, Brazil, Canada, Chile, Croatia, Cyprus, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, Indonesia, India, Ireland, Israel, Italy, Japan, Korea, Lebanon, Macau, Malaysia, Mexico, New Zealand, the Netherlands, Norway, the People’s Republic of China, the Philippines, Poland, Portugal, Russia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, the United Kingdom, Uruguay and Vietnam.
ADIDAS
AMERICAS
• Argentina
• Brasil
• Canada (EN)
• Canada (FR)
• Chile
• Colombia
• Latinoamérica
• Mexico
• Peru
• United States

ASIA PACIFIC
• Australia
• China
• Hong Kong
• India
• Indonesia


• Japan
• Korea
• Malaysia
• New Zealand
• Phillipines
• Singapore
• Taiwan
• Thailand
• Vietnam
EUROPE
• Baltics
• Belgium
• Czech Republic
• Danmark
• Deutschland
• Espana
• France
• Italia
• Ireland

• Magyarország
• Nederland
• Norge
• Polska
Portugal
Poccия
Schweiz
Slovakia |
Suomi
Sverige
Türkiye
United Kingdom

Domestic Presence
UNDER ARMOUR
80 factory houses
5 specialty stores
39 states
NIKE
U.S. Retail Stores
NIKE factory stores (which carry primarily overstock and close-out merchandise)
NIKE stores (including one NIKE Women store)
NIKETOWNs (designed to showcase NIKE products)
NIKE employee-only stores
Cole Haan stores (including factory stores)
Converse factory stores
Hurley stores (including factory and employee stores)

Total 338

140
16
11
3
111
43
14
ADIDAS
372 Stores
ALL 50 States
Core Products
Under Armour
Heat Gear
Cold Gear
Athletic Footwear
Athletic Apparel
Nike
Athletic Apparel
&
Footwear
Adidas
Athletic Apparel
&
Footwear
Demographics
Young men & women
Play sports, workout, extreme sports
Ages 15-34
Distribution
Under Armour: directly to consumer through website and wholesale to sporting goods stores (Dick's, Eastbay, Sports Authority). 90.5% of revenue from wholesale
Nike: 4 distribution centers in U.S. 7 international
Adidas: largest distribution center was in South Carolina until one was recently built in Germany
Full transcript