Professional Documents
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RECOMMENDED SOLUTION:
Enter European market through Foreign Direct
Investment (FDI) + retail and athletic
partnerships
BRANDS
Nike
Adidas
Columbia
Puma
LuluLemon
Patagonia
ATHLETIC
APPAREL
ACCESSORIES
PERFORMANCE
APPAREL
HIGH
Threat of
Substitutes
Intensity of Rivalry
Low
Bargaining
power of
suppliers
Medium-High
Medium
Threat of New
Entrants
Brand
Management
Sponsorship
Technology
Engineers
Shelf Space
Stores
Licensee
Rare
Stable
Inimitable
Innovative
Solid
Relationships
with Retailers
Marketing
Strength
High Quality
Products
Current Competitive Position: STRONG
However intense competition makes the company vulnerable
Corporate Challenges
Footwear Line
Development
1) Market Dominance
by Nike
2)Negative Initial
Reviews
International
Expansion
1) Capital Intensive
2) Lack of managerial
capacity
3) Uncertain of customer
preferences
2) Labor Intensive
Fast
growing
market
segment
Variety of
popular
sports in
Europe
Sponsorship
deals with
soccer and
rugby clubs
Nike losing
apparel
market share
in Western
Europe
Pros
Foreign
Direct
Investment
(FDI)
Cons
Partnership
Licensing
Prior success
experience
Madrid
Barcelona
London
Tottenham
Hannover
Frankfurt
Rome
Lisbon
2013 Europe
2014 Asia & Brazil
Sponsorship
Flagship Stores
World Cup Campaign
2015 Rugby World Cup Product Innovation
Product Modification
Financials:
$886 Million
Revenue
$58 Million
Net Income
Product
Line:
New
Innovations
for New
Markets
Brand Image:
Superior
Performance
Wear
Appendix Begins
So does a new chapter of Under Amour Inc. International
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
1,472,684
759,848
1,063,927
533,420
856,411
446,286
725,244
370,296
606,561
301,517
430,689
215,089
281,053
145,203
205,181
109,748
115,419
64,757
49,550
26,329
19,732
9,348
Gross profit
Selling, general and administrative expenses
712,836
550,069
530,507
418,152
410,125
324,852
354,948
278,023
305,044
218,779
215,600
158,682
135,850
100,040
95,433
70,280
50,662
40,709
23,221
18,908
10,384
7,035
162,767
-3,841
-2,064
156,862
59,943
112,355
-2,258
-1,178
108,919
40,442
85,273
-2,344
-511
82,418
35,633
76,925
-850
-6,175
69,900
31,671
86,265
749
2,029
89,043
36,485
56,918
1,457
712
59,087
20,108
35,810
-2,915
-79
32,974
13,255
25,153
-1,283
-226
24,096
7,774
9,953
-2,214
4,313
-894
3,349
-305
7,739
1,991
3,419
653
3,044
36
96,919
68,477
46,785
38,229
52,558
38,979
19,719
16,322
5,748
2,766
3,008
Net revenues
Cost of goods sold
38.42%
42.45%
24.23%
19.52%
18.09% 19.57%
20.52% 22.81%
40.84%
40.18%
53.24%
48.13%
36.98%
32.31%
77.77%
69.48%
132.93%
145.95%
151.11%
181.65%
Gross profit
Selling, general and administrative expenses
34.37%
31.55%
29.35%
28.72%
15.55% 16.36%
16.84% 27.08%
41.49%
37.87%
58.70%
58.62%
42.35%
42.34%
88.37%
72.64%
118.17%
115.30%
123.62%
168.77%
44.87%
31.76%
10.85% -10.83%
51.56%
58.94%
42.37%
152.72%
130.77%
28.78%
44.02%
48.22%
32.15%
13.50%
17.91% -21.50%
12.51% -13.19%
50.70%
81.45%
79.19%
51.70%
36.84%
70.50%
211.36%
290.46%
126.35%
12.32%
204.90% 1713.89%
Net income
41.54%
46.37%
22.38% -27.26%
34.84%
97.67%
20.81%
183.96%
107.81%
Growth rates
-8.05%
Percentage of revenue
Net revenues
Cost of goods sold
Gross profit
Selling, general and administrative expenses
1
1
1
1
1
1
1
1
1
1
1
0.5159613 0.5013689 0.5211119 0.51058 0.4970926 0.4994067 0.5166392 0.5348838 0.5610601 0.5313622 0.4737482
3
8
4
1
3
6
1
3
4
6
3
0.4840386 0.4986310 0.4788880 0.48941 0.5029073 0.5005932 0.4833607 0.4651161 0.4389398 0.4686377 0.5262517
7
2
6
9
7
4
9
7
6
4
7
0.3735146 0.3930269 0.3793178 0.38335 0.3606875 0.3684375
0.3425268 0.3527062 0.3815943 0.3565274
2
7
7
1
5
5 0.3559471
4
3
5
7
0.1105240
5
0.0026082
0.0014015
0.1065143
6
0.0407032
3
Net income
0.0658111
0.0546291 0.05271 0.0866491 0.0905038 0.0701611 0.0795492 0.0498011
0.1524427
3 0.0643625
4
2
6
2
4
8
6 0.0558224
3
0.1056040
5
0.0021223
0.0011072
0.1023745
1
0.0380120
1
0.0995701 0.10606
8
8
-0.002737 0.00117
0.0005967 0.00851
0.09638
0.0962365
1
0.0416073 0.04366
6
9
0.1422198
3
0.0012348
3
0.0033450
9
0.1467997
4
0.0601505
9
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
1,472,684 1,063,927 856,411 725,244 606,561 430,689 281,053 205,181 115,419 49,550 19,732
759,848
533,420 446,286 370,296 301,517 215,089 145,203 109,748 64,757 26,329 9,348
Gross profit
Selling, general and administrative
expenses
712,836
530,507 410,125 354,948 305,044 215,600 135,850 95,433 50,662 23,221 10,384
550,069
418,152 324,852 278,023 218,779 158,682 100,040 70,280 40,709 18,908 7,035
162,767
-3,841
-2,258
-2,344
-850
749
1,457
-2,915
-1,283
-2,064
-1,178
-511
-6,175
2,029
712
-79
-226
156,862
59,943
Net income
96,919
7,774
-894
-305
653
36
Europe Projection
(In thousands, except per share amounts)
2022
2021
2020
2019
2018
2017
2016
2015
885,709
639,872 515,067 436,180 364,801 259,027 169,032 123,401 69,416 29,801 11,867
456,992
320,812 268,408 222,705 181,340 129,360 87,329 66,005 38,946 15,835 5,622
Gross profit
Selling, general and administrative
expenses
428,718
319,060 246,660 213,475 183,461 129,667 81,704 57,396 30,469 13,966 6,245
330,825
251,487 195,374 167,210 131,579 95,435 60,167 42,268 24,483 11,372 4,231
97,892
-2,310
-1,358
-1,410
-511
450
876
-1,753
-772
-1,332
-538
-183
-1,241
-708
-307
-3,714
1,220
428
-48
-136
94,341
36,051
7,972
4,675
1,197
Net income
58,290
9,816
393
22
Time Cost
Financial
Cost
Potential
Profit
Control
High
High
High
High
High
Partnership Medium
Medium
Medium
Medium
Medium
Licensing
Low
Low
Low
Low
Foreign
Direct
Investment
(FDI)
Low
Works Cited
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2009. Web. 6 Dec. 2012.
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Expansions." Motley
Fool. N.p., 05 Apr. 2012. Web. 6 Dec.
2012.
<http://beta.fool.com/lynbetz/2012/04/05/hold-underarmour-despiteeuropean-expansions/3396/>.
Brown, Abram. "Under Armour Sprints To Higher Sales And
Profits, Lifts Full-Year
Outlook." Forbes. Forbes Magazine,
24 July 2012. Web. 06 Dec. 2012.
<http://www.forbes.com/sites/abrambrown/2012/07/24/und
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Burke, Monte. "In An About-Face, Under Armour Will Introduce Cotton Apparel."
Forbes. Forbes Magazine, 26 Jan. 2011.
Web. 06 Dec. 2012.
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Forbes. Forbes Magazine, 07 Sept. 2012. Web. 06 Dec. 2012.
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Onesource. Web. 6 Dec. 2012.
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Under Armour, Inc. Profile. Rep. N.p.: n.p., n.d. Hoover's Online. Web. 6 Dec.
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