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+Industry and Competitive Situation Analysis
Alex RaneyAllen HicksAnthony BrownBraden WalkerChristian Grandorf
+Background of Columbia
Formed from a hat company into a sportswear company in 1938.
Create innovative outdoor apparel
Extremely popular international brand since the 1970’s
Forbes Top 100 most trustworthy companies
Apparel magazine Top 100 most innovative companies.
+Background of Columbia
http://www.youtube.com/watch?v=pImbhMK7CIg
http://www.youtube.com/watch?v=ZBgQpyxs6jQ
+Industry Analysis
Very competitive
Seasonality
Innovation and technology
Global
+Competition
Rapid growth
Hundreds of competitors
Unique customer offerings
+Seasonality
Every company within the market faces seasonality
Different product lines
Strategy
+Innovation and Technology
Under Armour- Kevin Plank 1996
Unique for whatever outdoor activity
+Global
Distribution
Risk
Unique markets 2011 2010 2009
Net Sales % of Sale
s Net Sales % of Sale
s Net Sales % of Sale
s United States $ 948.0 56.0 % $ 881.0 59.4 % $ 736.9 59.2 % LAAP 341.0 20.1 263.4 17.7 203.2 16.3 EMEA 275.4 16.3 222.4 15.0 197.4 15.9 Canada 129.6 7.6 116.7 7.9 106.5 8.6
Total $ 1,694.0 100.0 % $ 1,483.5 100.0 % $ 1,244.0 100.0 %
+SWOT Analysis-Strengths
Cost position is lower than competitors
Product diversity
Extent of distribution
Continued growth year after year
+SWOT Analysis-Weaknesses
No corporate owned manufacturing Does not maintain long term contracts Quality control issues
Affected by the unstable price of raw materials High cost of transportation
+SWOT Analysis-Opportunities
Expand the sales of their warm weather lines
Expand the OMNI Tech use in products
Continue to expand in the LAAP Region
Grow their direct to consumer sales
+SWOT Analysis-Threats
Competitors expanding into their market
Increased regulation in manufacturing countries
Growing wages in manufacturing countries
+Production Strategy
Production is outsourced to foreign manufacturers Vietnam and China account for 70% of apparel production
and 90% of footwear
Over one hundred independent manufacturers
Operates liaison offices in 7 countries, staffed by Columbia employees
+Transportation Strategy
Products are moved to their markets via ocean freight
Finished cotton goods imported into the United States incur a 15.9% tariff
+Distribution Strategy
Products available in one hundred countries
Uses a mix of independent distributors and direct to consumer sales
Net Sales % of SalesUnited States 947 56.70%LAAP 277 22.60%EMEA 236.6 13.80%Canada 114.7 6.90%Total 1,669.60 100%
+Financial Analysis
Columbia Sportswear Company (COLM) stock on the NYSE has increased from 57.07 to 83.25 in a Fifty Two week span (April 1, 2013 to April 1, 2014)
Columbia went public sixteen years ago and has since then grown by 473%
Currently valued at 2.83 billion dollars
34.6 million shares outstanding, 66% held by insiders
Revenue of 1.68 billion
Gross Profit of 743.66 million
Cash Flow of 274.27 million
Net Sales decreased 1% in 2013
+Market Placement
Retail stores and outlets
Event sponsorships
Outfitting Olympic teams and competitors
+
+Under Armour
Target customers: Athletes, now trying to expand into casual gear as well for the non-athletes
Company Name
Revenues Gross Margi
n
Net Income EBITDA Total Assets Total Liabilities
PE Ratio
Market Cap
Employees
Share Price
Under Armour
Inc.
2,332,051,000
48.74 162,330,000
312,226,000
1,577,741,000
524,387,000
68.16 8,775 M 7,800 102.24
Columbia Sportswear Co.
1,684,996,000
44.13 94,341,000 171,794,000
1,605,588,000
360,170,000
29.5588
2,783 M 4,320 80.40
+The North Face
North Face is expected to double VF Corporation’s revenue by 2015 to $3 billion a year.
Target Customers: aimed at college students, switching to a more stylish apparel
The North Face is apart of the VF Corporation which is the largest apparel company in the world.
+Patagonia
Patagonia reached $540 million in revenues in 2011
Target customers: geared toward eco-friendly buyers
Patagonia focuses more on being green than any of its competitors and even makes most of its apparel of recycled materials.
+
Key Success Factor/ Competitive Variable
Weight
Columbia
Under Armour
North Face
Patagonia
Quality/product performance .20 10 9 10 8
Reputation/image .10 9 9 10 9
Raw material access/cost .10 8 8 7 3
Technological skills .10 10 8 7 7
Manufacturing capability .15 10 10 9 10
Marketing/distribution .20 7 9 5 4
Financial strength .10 8 9 10 7
Relative cost position .05 7 7 6 6
Overall strength rating 1.00 8.75 8.85 8.05 6.8