Over the past years, Foot Locker's brand has become one of the most popular names in its apparel and footwear industry. The company has already utilized this strength by leverage its strong brand, unlike its competitor Finish Line. The company has many subsidiary companies where consumers can purchase products. Foot Locker will continue to leverage this strong brand as it expands both internationally and domestically (Annual Report, 2013). Foot Locker stock price is $53.86 which is higher than its competitor Finish Line that has $23.35 (Yahoo Finance).With this in mind the company offers the latest athletic -inspired performance
There are a number of prominent financial themes that emerge from any detailed analysis of Lululemon. Some of these key themes are as follows: (a) Lululemon Athletica’s growth rate (as measured by revenue) is declining progressively, providing some evidence that the company is running up against market capacity in its current niche; (b) Lulu remains an efficient and profitable company, supporting the inference that the company’s slowing growth isn’t function of operational or financial weaknesses, but rather of a softening in demand associated with market saturation; and (c) Lululemon a retains the ability to spend and/or borrow its way to different growth strategies. An analysis of the previous 10 years of revenue growth data from Lululemon Athletica indicates a steady pattern of decline (Morningstar).
Their strong brand ethos as demonstrated by their customer service, positive store ambiance and brand image have allowed them to capitalize on both the niche of athleisure clothing and the entire athletic wear industry. One thing that all companies can learn from this report is the importance of marketing to their profits. As indicated by the research on the topic, there is a direct correlation between spending on marketing and profits. This is a clear indication that companies need to spend more time marketing their product as the non-price factors of a business are just as important to their bottom line as the
Nike succeeded in driving teenagers who are into sports to go to Gear up e-commerce hub at Nike.com. In this analysis; there were many things that I learned while completing it. Commercial is like a mountain we only see the small tip above the ground. It always has a deeper root. While struggling in my analysis journey, I also learned to use all my tools to descript the codes and interpreter the hidden meaning of the creator work.
Executive Summary Under Armour is an American company where sell sports equipment. This including footwear, sports, casual apparel and accessories. The company is founded in1996 by Kevin Plank. The headquarters is in Maryland, United States. Moving together with the development of technology, Under Armour introduce Under Armour Healthbox.
Nike and Under Armour are both very renound sportswear companies, but there is no denying that it is tough to compete with Adidas and their recent success. Although both companies are distinct in the look of their gear and their approach to the market. Broadly speaking Nike is the better American apparel company, while Under Armor is not far behind them. Nike is a far larger company in terms of market capitalization, revenue and net profit. Nike’s recent financials haven’t blown the market away, but is always consistently good as well as revenue continuing to rise.
Value creation is a very serious step in order for any company to become successful. Most think of this step as only creating value for the customers purchasing goods and services, but this aspect of value creation is only part of the whole process. Businesses are now looking more and more into creating value for shareholders, and enticing more people to invest in their company and become shareholders. Under Armour successfully creates value for both the customer purchasing their goods and people buying their stock in numerous ways. When it comes to sportswear companies convincing people to buy products Under Armour is one of the best.
2.0 Competitor Analysis The industry that Under Armour is involved with is extremely competitive, with competing against big names such as Nike or Adidas. Although it’s hard at the beginning, but customers want to have the highest quality apparel therefore they turn to Under Armour. Under Armour stays in the competition by having high quality products, and also by signing endorsements deals with major athletes (Owusu, 2017). By having major athletes represent Under Armour, means the company will be bringing in "big money" because they will bring up the brand’s popularity. The major competitors in this industry are of course inclusive of big names such as Adidas, Nike, Dick’s Sporting Goods and Puma.
Nike has sustained positive revenue in a worldwide market focusing on a healthy and active lifestyle. For the past 3 years Nike has gained a gross profit ratio of 8.73% in fiscal of 2013, 10.28% in fiscal of 2012, and 8.28% in 2011 . Thus showing the financial power Nike has, well the firm holds a net income of 2.5 billion in the fiscal year of 2013. Nike’s largest product category is footwear, representing over 55% of the companies revenue. Nike uses their financial resources ability to obtain large advertising plots, whether it is a commercial on television, advertisements on the Internet, or product promotion in athletic facilities.
Nike has managed to shift their Manufacturing unit into Asian country’s were the labor is cheap to be exact wages of USD1 an hour were so little as one-tenth of those given in the US. No wonder that a pair of shoes which were sold for $150 in 1991 is made by indoasian women who were 58 cents a day but the situation has started to change and due to that reason the company has managed to minimize cost of production and not only double triple the the revenue as comparing to the year 1996. Finally we come up with promotion and advertising campaigns which became a grand success not only because they introduced sportspersons , they also introduced innovative ideas and wise strategies and the image of the Product, due to this process we can say that Nike targeted a huge no of audience and created a Prestigious brand which will be easily available for average people . they also came up with great tag lines such as ‘there is no finish life’ , and in the 1980 they changed it into “ JUST DO IT “ these quotes of tag lines are considerd very simple but very attracting and extremely encouraging for the customers .
An advantage of how Nike uses this strategy is that it allows them to boost their profit by selling differentiated products and Nike have other products that will compensate for products that fails in the market. The difference between Nike and its competitors is that Nike produces their products for men, women, and children in different ways based on the basis needs, physiology, preference of design, and the trends in the market. However, the biggest threats to Nike’s market is the stiff competition with the other sports brands that sell similar products, which causes Nike to continuously come out with new products with new technologies and better
Nike's horizontal relation consists of various suppliers, distributors, retailers and manufactures. The next phase the overall cost structure of the product, average profit margins. Keeping a tight grip on costs is critical to any company’s profitability and for shareholder returns. Some of NIKE margins are lower than those of its competitors. The company’s gross profit margin, in particular, has trailed that of its rivals Under Armor VF Corporation Lulu lemon Athletic and Adidas.
Simply put, Nike’s target market is mainly customers who have more concern for the quality and utility of the product than they have for the price at which the product is being sold. This helps to ensure that pricing never has to be adjusted downwards in attempts to woo in a larger number of customers. For any company to achieve success from the marketing strategies that it has put in place, it has to ensure that its strategy is flexible enough to keep up with the changing times and to also accommodate a large variety of customers. So as to do this, it is imperative that the products being produced by the company be innovative enough to exceed what is being provided by competitors in every possible way. Nike chose to take this into deep consideration and this resulted in it making a few changes on its marketing strategy.
Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. A few have already started to transpire, though others are purely likelihoods. External factors affecting this mix is one of the most common, technology. Before Nike releases its brand new product line to the market, it’s always prepared to authorize that whether or not there has been any sort of major advances from the other competitors that would tracker its launch. Thus they must time this carefully, as other competition may demand to shadow its release with their marketing
Nike kept working with fashion designers and kept working with the top shoe designing companies to keep people satisfied. (¨Nike: The Fashion of Sports¨). Their success is due to the importance that they give their customers. Nike’s endorsements and the amount of money they have made is evidence that they are doing better than competing brands due to their game changing strategies. People choose to spend millions of dollars on merchandise that are specialized for certain sports,but those people do not play the sport (¨Nike: The Fashion of Sports¨).
