Presentation on theme: "Industry and Competitive Analysis: Under Armour"— Presentation transcript:
1Industry and Competitive Analysis: Under Armour Courtney Ellis, Travis Tempel, Casey Harvey, Roberto Padilla, Mason Stone, Miguel Medrano, Julio Garcia, Glen Lesley
2Mission StatementUnder Armour's mission is to make all athletes better through passion, design, and the relentless pursuit of innovation. Every Under Armour product is doing something for you; it's making you better.
3Performance Apparel and the Performance Apparel Industry Clothing made from moisture wicking material to enhance athletic performanceKevin Flank, Under Armour founder, 1996Under Armour's implementation founded the Performance Apparel Industry
4Under Armour's Public Image Positive due to being first to the marketProduce an innovative and quality productPartner with high schools and universities all across the countryLegacy Partners
5Legacy Partners Habitat for Humanity Ronald McDonald House V FoundationBoomer Esiason FoundationLiving Classrooms Foundation
6Under Armour's Programs Under Armour GreenUnder Armour FreedomUnder Armour Power in PinkUnder Armour Youth MovementUnder Armour Combines
7SWOT Analysis •Strengths: •-Sponsoring Schools •-UA Legacy Partner •-UA Green•-UA Freedom•-UA Power in Pink•-UA Youth Movement•-UA Combine•-UA Innovation Challenges•-Shipping Internationally•-Quality products•Weaknesses:•-Stuggles attracting more international market share•-They do not have a patent for any of the materials used in their products•-Many of the materials used in their products are petroleum based, and therefore subject to fluctuation•-UA is a much smaller company compared to competitors, and therefore not as strong•-Fairly expensive•Opportunities:•-Rash guards for MMA training•-Endless amount of possibilities in performance apparel ideas for sports•Threats:•-Bigger and stronger companies taking over the market due to a larger economies of scale•-Without patents, imitators could easily copy ideas and steal spot in market by producing less expensive alternatives
8UA Corporate Strategy Industry summary Competitive strategy Industry competition
11Rate of Growth Large opportunity for growth Outlet Stores “My 39 Submit-an-Idea”Specifically tell Under Armour what product they want to see
12Rate of Growth Large opportunity for growth Outlet Stores “My 39 Submit-an-Idea”Specifically tell Under Armour what product they want to see
13Ease of entry and competition Very hard for new companies to enter into this industryHighly competitive industryNIKE, Adidas, Columbia
14Technology and Innovation Emphasis on R&DCome out with new products for the customersMicrofiber clothing that is light and repels sweat
15Management Capability Employees know exactly how to act and work“The Code” is available to the public on their websiteCustomers can trust the company because they can see how Under Armour operates.
16Economic Factors Adapting to different market conditions Employees Hire appropriate people that fit culture and success.Not easy, competitors work to recruit the best as well.In UA’s Forward-Looking Statements – “changes in general economic or market conditions that could affect consumer spending and the financial health of our retail.”
17Economic FactorsFederal Trade Commission and other agencies make sure product is appropriate.LaborStrikes and lockouts cause slow downs that hurt production.Policies in other countries can change.Can lead to risks that can affect the consumer in the end.
18Social Factors Age distribution Geographical Boundaries HeatGear, ColdGear, AllSeasonGearSports MarketingDifferentiated brand imageInternational Exposure
20Financial Factors Access to capital when required is strong Degree of Capital Utilization is strongEase of Exit from the market is weakProfitability, Return on investment is strongLiquidity, Available Internal Funds is strongDegree of leverage, Financial Stability is strongAbility to compete on prices is strongCapital Investment, Capacity to meet demand is strongStability of Costs is strong
21Technical Factors Technical and Manufacturing Skills are strong Resource and Personnel Utilization are strongLevel of Technology Used in products is strongStrength of patents is weakProduction effectiveness and delivery schedules is strongValue added to Product is strongIntensity of Labor to produce the product is strongNewness of Plant and equipment is strongApplication of computer technology is strong
22Technical Factors Ctd. Third-party Manufacturing Innovation Processes and fibers are not unique.Threat of imitatorsInnovationUA and their competitors constantly compete on innovationBrand MissionSubmit an Idea
23Environmental Threat and Opportunity Profile Impact of Factors Importance of Factors Environmental ThreatEconomicPoliticalSocialTechnologicalCompetitiveGeographicTOTAL 81•Helps to identify, consolidate, and provides a strategy for a corporation(s), identifIes opportunities and threats, consolidate and strengthen organization(s) position, provides the strategists of which sectors have a favorable impact on the organization, and organization(s) knows where it stands with respect to its environment.
24Key Success Factor / Strength Measure Weight UA Nike Adidas Columbia Quality / product performance / / / /0.60Reputation / image / / / /0.10Raw material access / cost / / / /0.50Technological skills / / / /0.15Manufacturing capability / / / /0.75Marketing / distribution / / / /0.20 Financial strength / / / /0.90Relative cost position / / / /0.15•Reveals strength of a/your firm’s position in its industry. It shows how firm stacks up against rivals, measure-by-measure—pinpoints the company’s competitive strengths and competitive weakness.
26Phase 1 Entrepreneurial Structure Need for direction Crisis Plank saw the need for a new productMade designs and prototype for friends in NFL to testMostly concerned with shorter term goals to get the company on its feetNeed for direction CrisisThey need a way of planning for the futureNeed to start marketing and expanding the business
27Phase 2 •Formalization “Protect this House” Here is where they build a business model/strategy for the companyStart looking towards longer term goals for the futureStart promoting the product with TV commercials“Protect this House”Lack of Autonomy CrisisEmployees need to have the authority over how they do work and with whom they do work withLet employees do work that is most enjoyable
28Phase 3ExpansionThis is where the company starts to expand on a larger scaleThey expand internally with new and bigger departmentsThey start to show their competitive side both in the market and with their competitorsThis is where they are right now
29Kevin Plank-CEO (Founder) Kip Fulks-Founding Partner and Chief Operating OfficerByron K. Adams, Jr.- Chief Performance OfficerCharlie Maurath-President International SalesDiane Pelkey-VP Global Brand CommunicationsJohn Rogers-VP/GM of Global E-CommerceKevin Eskridge-VP of ChinaMatt Shearer-VP of EMEASteve Sommers-VP of Global Brand MarketingAdam Peak- Senior VP of US SalesBrian Cummings- VP of SalesFred Knowles-SVP of Human ResourcesEdith Matthews-VP of HR Business PartnersGene McCarthy-SVP of FootwearKeith Dunlap-VP of Footwear SourcingHenry Stafford-SVP of Apparel, Accessories and OutdoorsEdward Giard-VP of Licensing and AccessoriesGlenn Silbert-VP of Men's, Youth, and AccessoriesGwyn Wiadro-VP of Women's ApparelLisa Struble-VP President of Technical DesignMatt Mirchin-SVP of Brand and Sports MarketingJamie Bragg-VP of Team SportsSteve Battista-SVP of BrandAmy Larkin-VP of CultureJoseph Giles-Chief Information OfficerDave Demsky-VP PMODavid Berman-VP Corporate ControllerJohn Stanton-VP of Corporate Governance and ComplianceShawn Herrin-VP of Business IntelligenceScott Plank-Executive VP Business DevelopmentCynthia Raposo-VP LegalKevin M. Haley- SVP of InnovationRich Rapuano-SVP of PlanningScott Salkeld- VP of StrategyTodd Montesano-VP of Strategy AlliancesJim Hardy-Chief Supply Chain OfficerKeith Hoover-VP of Sourcing ResourcesMike Fafaul-SVP of Global Logistics
30Importance of Culture on Different Factors Founder’s BeliefsTeam OrientedHard WorkEmployees and Customer InvolvementEffective Communication over all levelsInnovation – From changing a cotton shirt to also changing shorts, sweats, socks, etc.