Lodh Case1
Case # 5 under Armour - Challenging Nike In Sports Apparel
Industry & Market: Kevin Plank, University of Maryland football player founded Under Armour in 1996. It generates new idea in the sports wear industry. Under Armour is the first creator of performance wears in the industry. They spread their market to USA, Japan, UK and Canada. They have around 6000 stores in USA and 2000 Stores in UK, Japan and Canada.
External Enviorment
The external analysis of the sports apparel will describe the attractiveness of the industry.
Amour has a high threat of substitute, high competative rivalry and a they need to be differentiate their product.
If they can differntiate their product that time they can gain more profit, else competitor will take the advantage.
Moreover, they can cover more population as the demand of sports wear and apperal industry demand is increasing day by day.
Internal Enviorment:
Armour has stong brand value and they have excellent product , low cost production and has oppourtunity for growth.
Armour has great internal strenght , that is their working strategy that is innovative technolgy using in their matarial.
They have lack of international market share.
Their product line is short not like their competitor.
Armour need to focus on those factors to stay long into the business and competit with competitors.
Financial Analyses:
Under Armour place their product in a leading position within a very short period. Their revenue increased from $5.3 million to $263.4 million (2000 to 2005). Operating income increased from $0.7 million to $32.7 million in the same year. In recent year, around 24.6% percent revenue increased (2011-2012). Company’s average growth rate is 25%. Company’s net income increases around 62.40% from 2011 to 2012.
Economic condition for industry:
The global demand of sport apparel products is noticeably increasing. The development of modern technologies and the changes in lifestyle has given
Industry & Market: Kevin Plank, University of Maryland football player founded Under Armour in 1996. It generates new idea in the sports wear industry. Under Armour is the first creator of performance wears in the industry. They spread their market to USA, Japan, UK and Canada. They have around 6000 stores in USA and 2000 Stores in UK, Japan and Canada.
External Enviorment
The external analysis of the sports apparel will describe the attractiveness of the industry.
Amour has a high threat of substitute, high competative rivalry and a they need to be differentiate their product.
If they can differntiate their product that time they can gain more profit, else competitor will take the advantage.
Moreover, they can cover more population as the demand of sports wear and apperal industry demand is increasing day by day.
Internal Enviorment:
Armour has stong brand value and they have excellent product , low cost production and has oppourtunity for growth.
Armour has great internal strenght , that is their working strategy that is innovative technolgy using in their matarial.
They have lack of international market share.
Their product line is short not like their competitor.
Armour need to focus on those factors to stay long into the business and competit with competitors.
Financial Analyses:
Under Armour place their product in a leading position within a very short period. Their revenue increased from $5.3 million to $263.4 million (2000 to 2005). Operating income increased from $0.7 million to $32.7 million in the same year. In recent year, around 24.6% percent revenue increased (2011-2012). Company’s average growth rate is 25%. Company’s net income increases around 62.40% from 2011 to 2012.
Economic condition for industry:
The global demand of sport apparel products is noticeably increasing. The development of modern technologies and the changes in lifestyle has given