Essays on Under Armour

Introduction

Under Armour is the brainchild of Kevin Plank who initiated the company in 1996, which has grown to a multi-billion business venture operating in the American market and producing accessories and sports clothing. It is among the largest suppliers of casual and sportswear apparel in the Americas. The company is headquartered in Baltimore, Maryland with franchises across Houston, Austin, Denver, Texas, New York and other major states in North and South America. Further, Forbes notes that Under Armour’s core business is the manufacture, marketing, and distribution of branded sports apparel including footwear, accessories for men and women and ...

<<FName, LName>> <<Class>> <<Professor>> <<School>> <<City>>, <<State>> <<Date>> Strategic brand management refers to the evolution of brand characteristics that build authenticity, assurance and emotional bonds with customers that ultimately result in value creation and building of social interactions and behavior (Rosenbaum-Elliot et al., 2011).

Understanding customer problems and making efforts to solve those problems form the core of marketing strategy (Alexander, 2015).

Customers are swayed by social and behavioral impulses leading to purchases which either solve a problem or meet their unique need. For this discussion we will evaluate the strategic brand management of Nike. The ...

A) Cost of Equity Calculation:

= Risk free rate+ Beta(market risk premium) = 2.24+0.57(6.2) = 5.78%

Calculative Notes:

a) Risk Free Rate:

30-year US treasury rate: 2.24%

b) Equity Risk Premium:

Duff and phelps equity risk premium: 6.2%

c) Beta: 0.57

B) Cost of Debt: 2.72%

For the purpose of calculation of cost of debt, we have assumed average of yield to maturity of existing bonds of the company. c) Equity and Debt Weights: D) Cost of Capital-On Book Value basis

E) Cost of Capital-On Market Value basis

Important to note, cost of capital based on market value is the most appropriate as it represents the appropriate risk involved within the company’s capital structure.

G) Equity and Asset Beta

Beta (asset) = Beta (equity) / [1+ [(1-t)*D/E]] The above table indicates that amongst all ...

Business Project

With only ten years of public recognition, Under Armour is causing ripples in the apparel industry and fiercely competing with the major players of clothing in the sporting world. What started as a clothing provider for the Maryland football team has now grown to an internationally recognized brand. Through intense dedication to design and pursuit of innovation, Under Armour produces impressive footwear, apparel, and accessories for male and female athletes. The organization is fast growing, and it is encroaching different geographical regions, the most notable being America, Europe, and Africa. The company is now famous and popular for its ...

Introduction

The entrance in the sport apparel and footwear arena of Under Armour, a relatively young sports brand followed its founder, Kevin Plank’s mission to provide athletes with fabrics that would prevent the accumulation of sweat, allowing them to focus on their games. This is still the company’s mission today: “Our mission. To make all athletes better through passion, design and relentless pursuit of innovation” (Thompson 53; Under Armour official website). Mission statements should answer the question why the company exists, it should be short, memorable, inspiring, market focused, indicate what the company wants to be remembered for ...

Chapter 1

Nature of the Organization’s Business Under Armour is a multinational sports clothing and accessory company headquartered in Baltimore, Maryland. The company suppliers casual apparel and sportswear, and in 2006, it started offering footwear. The company sells its products worldwide targeting athletes at all levels as well as consumers having active lifestyles. To date, the company has opened various stores as well as factory outlets in various states and nations including Canada and China.

Organization’s History

1996-1998: Early Milestones 1996: Founding of the Company Kevin Plank founded the company in 1996 when he was 23 years old. He was the former ...

Environmental Scan

Under Armour is a sporting apparel manufacturer and wholesaler for women, men and youth. Their products feature special moisture-wick fabrics engineered in a diverse range of styles and designs for the performance athlete in any climate and at any age. Under Armour's products are worn by athletes at all levels including professional as well as consumers living active lifestyles. In 2015, Under Armour grew approximately 20% in revenues from year prior, generating global revenues of $4..9 billion and maintaining an operating income of $503 million.(Mann 2016) The majority of its net revenues are generated from wholesale sales of ...

Under Armour

How have the norms and regulations of national government in its 'home' country shaped the way Under Armour has gone global? Under Armour had gone global with about 300 retail stores in 13 countries and aims to have more than 1,000 stores by 2018, with expansion plans in South American countries. There are certain norms and regulations of the US government that have helped shape the growth of Under Armour. Under Armour takes advantage of the norms and regulations of national government and works on its core values and adhere to these practices when doing business with suppliers. ...

Current Market Conditions of Nike

Nike, Inc., one of the world’s leading seller of athletic footwear and apparel was incorporated in 1968 and since then has grown immeasurably with a market capitalization of $83.6 billion and a brand value of $19 billion as of 2014 and a huge presence in 190 countries.. Several market conditions have impacted Nike’s growth and will continue to do so as it journeys through the future in an even more competitive industry. Currently, the key players in the athletic footwear and apparel industry are Adidas, Reebok and Puma. Until recently, new entrants in the market have emerged, ...

Adidas Group

Company Description The history of Adidas Company can be traced back in 1924 when the company's founder, Adi Dassler established the "Gebrüder Dassler Schuhfabrik" to focus on offering athletes with the high-quality products. In 1928, the company produced the Gold medals to be presented in Amsterdam and Berlin in 1936 as the first journey for the company. In 1949, the Adi registered the "Adi Dassler Adidas Herzogenaurach" and started working with only 47 employees in Herzogenaurach, Germany. During the same year, Adi registered a shoe brand that had the Adidas 3-stripes brand. The introduction of the football boots ...

Introduction

The paper is commissioned to perform financial analysis for Nike Inc. As part of this analysis, we will extensively discuss the current position of the company in the industry and how well it is forecasted to survive in the future amid the ongoing developments in the industry. However, the main focus of this paper will be to unearth the financial standing of the company over the recent past two years using the tool of financial ratios. In order to incorporate cross-section analysis in our analysis, we will also compare the ratio multiples with the competitor firm, Under Armour.

About the company

Founded ...

Introduction

Lululemon Athletica, Inc. is a leading designer as well as retailer of top-end yoga and sports apparel. The company was established by Chip Wilson in 1998 in Vancouver and has been operating mostly in New Zealand, Australia, and North America. Wilson created Lululemon Athletica, Inc. to address the unique preferences as well as needs of women, but later the management decided to increase its market target. As a result, the company started designing and retailing yoga and athletic apparel for the female youths and men. The company reaches out its potential customers through instructors and yoga studios. It is ...

Executive Summary

Nike is the most reputed and celebrated brands globally, the tagline Just Do it and the swoosh logo is recognized by one and all, in this age of digital media Nike has been able to outrun its competitors on the social media by using engaging and interactive programs. The accounts of Nike as researched and repeatedly mentioned in the report connects with the consumers on a deeper emotional level and is spite of managing different departments, the company has been able to create a leading niche in the social media marketing programs amid the competition effectively. Nike needs to ...

Overview of Geographic, Cultural, Political, Economic, and Legal Risks/Benefits:

Lululemon is one of the premier workout wear companies in the world. What makes Lululemon so sensational is that they are a luxury brand that is truly bright colored and high quality. So far, Lululemon has made many successful attempts as they opened luxurious storefronts all over the globe. Given that Lululemon is a Canadian company, it is quite surprising that they have been so successful within other markets than their home market. In fact, Lululemon has been quite successful in the United States, New Zealand, and Australia, (Lululemon History, 2016). This year, Lululemon is planning on expanding their ...