Under Armour’s Strategy in 2016—How Big a Factor Can the Company Become in the $250 Billion Global Market for Sports Apparel and Footwear?
How strong are the competitive forces confronting Under Armour, Nike, and The adidas Group? Do a five-forces analysis to support your answer.
Does Under Armour have any core competencies and, if so, what are they?
Does Under Armour have any resource strengths or competitive capabilities that qualify as a distinctive competence?
What does a SWOT analysis reveal about the overall attractiveness of Under Armour’s situation?
What are the key elements of Under Armour’s strategy?
Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Under Armour is employing?
What is impressive about Under Armour’s financial performance during the 2011-2016 period (as shown in case Exhibit 1)?
How does Under Armour’s competitive strength compare against that of Nike and The adidas Group? Do a weighted competitive strength assessment using the methodology presented in Table 4.4 in Chapter 4 to support your answer. Based on your assessment and calculations, does Under Armour have a net competitive advantage or disadvantage in competing against Nike and The adidas Group?
What 3-4 top priority issues do Kevin Plank and Under Armour management need to address?
What recommendations would you make to Under Armour CEO Kevin Plank? At a minimum, your recommendations should cover what to do about each of the top priority issues identified in question 9.
What is impressive about Under Armour’s financial performance during the 2011-2015 period (as shown in case Exhibit 1)?
Select “true” or “false” for each of the following statements concerning the data in case Exhibit 1. Use the key financial ratios in Chapter 4 to assist you in performing calculations to determine whether the statements are true or false. In addition to the financial ratios, you will also need to calculate compound average growth rates (CAGR) for certain financial measures. The formula for calculating CAGR (in percentage terms) is as follows:
CAGR % = [ending value ÷ beginning value] 1/n – 1 × 100
(where n = the number of year-to-year or period-to-period changes)
a. From 2011 through 2015, Under Armour’s compound average growth rate in net revenues was a strong 28.1%.
True or False
b. UA’s income from operations rose from $162.8 million in fiscal 2011 to $408.5 million in fiscal 2015, an increase of 250.9% and a very healthy compound average growth rate of 25.9%.
True or False
c. UA’s net income fell from $232.3 million in fiscal 2011 to $150.9 million in fiscal 2015.
True or False
d. UA’s diluted net income per share rose from $0.46 in 2011 to $1.05 in 2015, an increase of 228.3% and a strong compound average growth rate of 22.9%.
True or False
e. UA incurred considerable debt in order to finance its rapid growth.
True or False
f. UA’s working capital has doubled since 2011.
True or False
g. UA debt is $669 million versus $1.67 billion in stockholders’ equity at the end of fiscal 2015.
True or Fale