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Under Armour

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by

Chasiti Walker

on 7 November 2013

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Transcript of Under Armour

Under Armour Analysis
Hakeem Martin
Jelena Parks
Kyle Spencer
Chasiti Walker

Detail 1
Existing Competition Rivalry With Industry
Face constant intense competition with nike and adiddas offering them large resources at there disposal

Internal Environment

Under Armour will never use cotton to produce clothing
"The key driver is to offer products that are better than what is currently on the market, best in class"
Marketing Strategy- Athletes volunteer to wear the product because they want to.
SWOT Analysis
Reputation
Leadership
Team driven style
"Under Armour is one team... my job is to make sure we operate and execute as one team... and keep everyone running on the same wavelength and working towards the same goal: to become the world's number one performance athletic brand."
1. Make a great product
2. Tell a story about the product
3. Service the business
4. Build a great team
Authentic Product
Provides products for various sports teams
Offers a variety of products
Weaknesses
Limited Product Range
High Prices
First Mover
Strengths
Opportunities
Make everyday clothing
International Expansion
Add designs to products
Threats
Intense Competition
Substitute products by other companies
Financial Ratios
Current Ratio= Current Assets/Current Liabilities
December 31, 2012

903,598/252,228=
3.58
December 31, 2011

689,663/183,607=
3.76
Current Ratio
shows a firm's ability to pay current liabilities using assets that can be converted to cash
Financial Ratios
Working Capital= Current Assets−Current Liabilities

December 31, 2012

903,598-252,228=
651,370
December 31, 2011

689,663-183,607=
506,056
Working Capital
- the cash available for a firm's day-to-day operations.
Financial Ratios
Days of inventory= (Inventory )/(Cost of Goods ÷365)
December 31, 2012

(319,286)/(955,624÷365)=
121.95
December 31, 2011

(324,209)/(759,848÷365)=
155.83
Days of Inventory
- an average of how many items you sell a day
Under Armour’s Strategy
Focused Differentiation Strategy

Innovation of performance sports gear (football)
Drier
Lighter
More comfortable
Strategy changes……….
Under Armour performance gear grows but … competitors, such as Nike and Adidas, decided to offer the same products by producing lines of their own.

Time to Switch it Up!
BROAD DIFFERENTIATION STRATEGY

Broad Differentiation Strategy
Constant innovation is stressed
Change focused.

Product Placement
Increase consumer awareness through movies, television shows, and video games.
Key Success factors
Factors that directly affect customer satisfaction such as cost, quality, time and innovative products and services.
UA’s key success factors are image advertising and emotional bonding
Worry List
Building brand name
Gaining more customers
Diminishing product

Bargaining Power of Supplier
(Diverse suppliers limit bargaining powers)
Produced by 27 manufactures located across 14 countries
PESTEL
Political- FDI Policies
Economic- Increase in cost of raw materials, increase in shipping cost, growth of apparel industry, labor cost increases
Social- Obesity rate in the U.S, buyers focus on quality not price, increase in active seniors, increase in active women, sports are popular in the U.S
Technological- Increase in e-commerce, apps
Environmental- Water shortages
Legal- Consumer laws, labor laws. Anti trust, occupational health laws, safety regulations







Under Armour Background
Founded in 1996 by former University Maryland football player Kevin Plank
Designed to keep athletes cool, dry, and light during a game, practice, or workout.
Started by a simple T-shirt design that would provide compression from the skin thereby regulating body temperatures and avoiding the discomfort of sweat absorbed material
Under Armour Mission Statement
To make all athletes better through passion, design, and the relentless pursuit of innovation.
Bargaining Power of Customer
70% wholesale (Sports Authority & Dicks) 30% direct to consumer
Wholesale hold a good amount of leverage because they could substitute with competition
Threat of New Entrants
Existing sports appeal companies could enter market

Threat of Substitute Products
Demand is too high and expect to continue
Alternative Strategy: Best Cost Provider
Giving customers more value for their money by emphasizing both low cost and upscale difference. The overall goal is to keep costs and prices lower than those of other providers of comparable quality and features.
Full transcript