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: Challenging Nike in Sports Apparel

No description
by

Wells Audrey Russell

on 9 April 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Under Armour: Challenging Nike in Sports Apparel

Under Armour: Challenging Nike in Sports Apparel

KP Sports - The Beginnings of Under Armour
Five Forces Analysis
Competencies
Core Competence - an activity that a company performs proficiently that is also central to its strategy and competitive success
Innovation & R&D
“to make all athletes better through passion, design, and the relentless pursuit of innovation”
Distinctive Competence - a competitively important activity that a company performs better than its rivals
High quality, long-lasting products
Trey Lavespere & Wells Audrey Russell
Rivalry Among Competing Sellers: HIGH
Competitive Pressures from Suppliers: MEDIUM
Firms in other Industries Offering Substitute Products: LOW
Competitive Pressures from Buyers: MEDIUM
Potential New Entrants: MEDIUM
SWOT Analysis
Strengths
Innovation & technology
Simple, straightforward, & memorable message
CEO an athlete
High quality & high performing product
Athletic endorsements & sports sponsorships
Weaknesses
Marketed & produced mainly for males in the beginning
Very limited product line in the beginning
Limited online presence
Small international presence
High prices
Opportunities
Expand the product line
Patent the technology/process used to make their apparel
Expand internationally
Threats
Lack of patents
Competition from larger companies
Key Elements of the Strategy
1.) to win buyers over with a superior product depsite the higher price

2.) to gain buyer loyalty to the Under Armour brand

3.) to increase sales due to high brand loyalty and the attractiveness of the product/brand to additional buyers


To achieve these goals, Under Armour focuses on several uniqueness drivers.
Under Armour's Competitive Strategy
Beginning = Focused Differentiation Strategy

Current = Broad Differentiation Strategy

Broad Differentiation Strategy
Focused Differentiation Strategy
Financial Performance
Weighted Competitive Strength Assessment
Priority Issues & Recommendations
1.) Lack of patents - Under Armour needs to think about patenting its intellectual property in order to safeguard their product and prohibit competition from stealing their property

2.) Product Line - Under Armour needs to continue the expansion of their product line to market to more women, children, outdoors (hunting & fishing), etc.

3.) International Presence - In order to stay competitive with companies like Nike and Adidas, Under Armour needs to continue their foray into the global market.
Questions?
2011
2010
2009
2008
2006
Net Revenue
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Net Return on Total Assets
ROE
Working Capital
Total Debt to Assets Ratio
Debt to Equity Ratio
$1,472,684
$1,063,927
$856,411
$725,244
$430,689
0.48
0.11
0.07
0.11
0.15
$506,056
0.08
0.23
0.50
0.11
0.06
0.10
0.14
$406,703
0.02
0.03
0.48
0.10
0.05
0.09
0.12
$327,838
0.04
0.05
0.49
0.11
0.05
0.08
0.12
$263,313
0.09
0.14
0.50
0.13
0.09
0.13
0.18
$173,389
0.02
0.03
Under Armour is doing great!
Founded in 1996
Former Maryland football player
15 years - sales of $15 billion
Scott Plank
Key Success Factor Weight Under Armour Nike Adidas
Quality/product
performance
Reputation/image
Manufacturing capability
Technological skills
Raw material access
New product innovation
capability
Financial resources
Relative cost position
Customer service
capabilities

Overall weighted competitive strength rating
.10

.10
.10
.10
.05
.15

.10
.20
.10


1.00
9 0.9

8 0.8
8 0.8
10 1.0
5 0.25
10 1.5

6 0.6
5 1.0
8 0.8


7.65
9 0.9

9 0.9
9 0.9
9 0.9
10 0.5
7 1.05

10 1.0
10 2.0
8 0.8


8.95
8 0.8

8 0.8
8 0.8
8 0.8
6 0.3
7 1.05

7 0.7
7 1.4
8 0.8


7.45
Full transcript