UA has also reshuffled the international leadership team, hired marketing consultants in select regions, and taken back control of product sales and distribution in many countries. Due its rapid growth and strong business plan, the company has been able to keep its debt low and re-invest its cash flow into new products.
Further, relatively high competition in this industry is another reason why these companies should focus on strong marketing teams and solid customer service. With its global presence, market leading customer base and strong reputation, we believe the company is without a doubt organized to exploit and leverage its strong financial condition.
Because of that, we do not believe outsourcing, per se, is rare. And we look for the company to open more outlet shops overseas, in places like Europe and Latin America.
The cash outlays mean that a quarterly dividend is probably not in the cards anytime soon, however, which may be a turnoff to some income-oriented investors.
Still, the stock could start to look a lot cheaper quickly if earnings can maintain their current momentum. Investors are, in particular, questioning if the company can match its inventory with its rapid growth, which is a crucial factor in any retail business.
Growth has been supported by an effective leveraging of the core sweat-wicking apparel that first put Under Armour on the mapmuch the same way NIKE leveraged its early prowess in running shoes to expand into broader apparel and athletic categories.
Or will the explosive growth continue for several more years to come, rendering this a worthwhile entry point?
A big way to do this is by moving overseas, which is why the company is building out its network of factory outlets. This is a tag that has often been put on NIKE. Most companies in the industry do outsource its production, and it becomes more common every year as the world gets more global.
This is particularly important in this industry, as companies often come out with new products. The Business Baltimore, Maryland-based Under Armour, founded in by CEO Kevin Plank and public since latestarted out as a maker of compression t-shirts and gradually evolved into a global designer and distributor of high-performance athletic apparel, footwear, and accessories.
NIKE could exert its power in many ways, from outbidding the company for endorsement deals to securing cheaper sourcing plants in emerging markets. Lastly, we do not believe that the company is fully ready to exploit its rapid growth. The issue for these companies is to outsource its production with high efficiency.
Thus, we still like UA shares as a long-term play. That has not been the case historically, with the company, most notably, using acquisitions to shore up its online presence. The firm that can employ and utilize highly innovative employers will therefore gain substantial advantage. Should individual investors follow their lead and take a pass on UA stock at this time?
Thus far, most of the footwear gains have been in the running space. The consumers seem to appreciate the high quality, which can be seen by analyzing the premium prices the company is able to charge its customers.
Is there demand for their goods around the world? First, we believe that innovation and creativity are two of the most important aspects in the footwear industry. And Under Armour recently beat out Adidas for the No. By then, the currency situation should be a bit better, and margins ought to widen as Under Armour leverages its infrastructure investments.
This has mostly involved the opening of factory outlet shops that let the company clear its inventory position and reach untapped rural and suburban U.
Therefore, we believe its financial resources are particularly valuable. We have chosen to work with the same resources for both companies to get a better comparison.
Is the company familiar with other cultures and legal systems? So that brings us back to the valuation question: We believe this is one of the most important areas in the industry, as it creates brand awareness and customer loyalty, two crucial factors in this highly competitive market. Under Armour Case Analysis Abstract Under Armour is a sports apparel, footwear, and accessories company that is quickly becoming a global force to be reckoned with.
Under Armour has focused a lot of its fuel in this area, and they have been remarkably successful. Therefore, we estimate this area to be one of the company’s strongest functions – it is a core competency!
How strong is Under Armour’s business model? In the next parts of this series, you’ll read a SWOT analysis—looking at strengths, weaknesses, opportunities, and threats—of Under Armour, Inc. Under Armour Case Anylasis Essay Case Analysis Model Begin with a brief introduction which names the company and the industry in which it operates.
Then briefly describe the company’s position within the industry, and how it is trying to position itself (it is a good idea to write the intro after you have finished all of your analyses).
Under Armour Case Anylasis Essay Words | 4 Pages. Case Analysis Model Begin with a brief introduction which names the company and the industry in which it operates. Then briefly describe the company’s position within the industry, and how it is trying to position itself (it is a good idea to write the intro after you have finished all of.
Under Armour: A Short SWOT Analysis. Justin Hellman | July 13, And such is the case when Under Armour takes aim at NIKE, which has a huge war chest (of nearly $6 billion in cash assets) and a dominant global position.
NIKE could exert its power in many ways, from outbidding the company for endorsement deals to securing cheaper .Download