Armour Case Studies Samples For Students

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 ...

EXECUTIVE SUMMARY

Protecting the House of Under Armour
Patrick Kraft and Jason W. Lee’s article “Protecting the House of Under Armour” tells the story of a “young and up-and-coming” brand (2009, p. 112), Under Armour, who has become the leader of performance apparel, with an uncontested 75% market share, by applying innovative and efficient marketing strategies. Competing against globally renown brands such as Nike and Adidas, the mission of Under Armour, to become a reputable brand in the sportswear market was not an easy one, yet the company succeeded in making its products highly appreciated by athletes around the world, positioning ...

Under Armour’s experience in using celebrity endorsement for enhancing one brand’s value is eloquent and it may be utilized as a “best practice” model. While it is true that Kevin Plank, the CEO of Under Armour, used the advantage of knowing several athletes before launching his business (the T-shirt that stayed dry during on-field games) and he initially based his business on a word-of mouth strategy, he soon began to be aware of the advantages of investing into celebrity endorsement. With small steps, he approached football or basketball players, proposing various deals in order to determine them to wear ...

Instititution:

The Under ArmourCompany began in 1996 by Kevin Plank, who played football with the University of Maryland College. The Under Armour performance apparel consist of footwear, accessories gear, made to keep athletes players cool, dry, and light throughout the course of a game, practice and workout.
There are several factors that affect business such as adjusting people choices or demoting the need for workout gear and other items. As people make more money, they can purchase items that he or she always wanted, such as special material or electronics devices. These are regular product that a normal family needs, but ...

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 ...

Under Armour has managed to increase its competitive edge by incorporating a variety marketing strategies for the realization of sports accessories and performance apparel. The company ensured that most of its athletes get the appropriate facilities and training to enhance their design and passion for sporting activities. They set up initiative or programs that allow the athletes to engage in innovative sporting activities. The company established a strategy that advocated for the marketing, distribution and development of the branded footwear, performance apparel and accessories for both genders. The marketing strategy is among the substantial Under Armour’s competitive force ...

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 ...

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 ...