A Summary Of Ua's Financial Performance
Financial Performance UA illustrated strong fiscal performance in the financial year (FY) 2014 by posting a 32.3% increase in revenue compared to a lesser amount the previous FY 2013. According to ****, revenue from American sales accounted for a majority of UA’s net earnings at 90.7% of total income. The increase in earnings can be attributed to heightened customer interest and demand for high quality performance products and strong brand recognition. Despite revenue from foreign branches accounting for 9.3% of the total revenue FY 2014, FY 2013 net earnings were lower at $138.3 million compared to $288 million recorded the following year. The increase in revenue by $149.7 million can be attributed to UA’s expansion of its distribution channels into Europe, Africa, the Middle East, and Latin America. UA operates three product lines that include accessories, apparel, and
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footwear, with each line earning 27.5%, 30%, and 44.2% respectively in FY 2014. Brand recognition plays an extremely vital role in spurring UA’s success in the sports gear and apparel industry, an aspect that resulted in the adoption of app technologies to boost its brand by acquiring fitness app makers MyFitnessPal and Endomondo.
Strategic Group Mapping
The strategic groups map represented in graph1 bellow illustrates UA’s positioning the market relative to other key players in the industry.
The unparalleled and dominant presence and brand recognition of UA’s main competitors limit the company to unique customer bases and restricted geographical market share. UA’s failure to excel in foreign markets can be attributed to its focused specialized products and sport selectivity, which leaves out other sports and numerous opportunities for creating new customers and market share.
Recommendations
UA should focus and devote most of its marketing and product development on sporting activities that have a global presence to increase its product diversification and capture more market share globally. The threat of being pushed out of a market by larger and more resourceful competitors is always an imminent possibility for UA that can be avoided by the embracing of technology in product design through research and development (R&D), more effective and efficient supply chains, improved network distribution, and sports
marketing.
footwear, with each line earning 27.5%, 30%, and 44.2% respectively in FY 2014. Brand recognition plays an extremely vital role in spurring UA’s success in the sports gear and apparel industry, an aspect that resulted in the adoption of app technologies to boost its brand by acquiring fitness app makers MyFitnessPal and Endomondo.
Strategic Group Mapping
The strategic groups map represented in graph1 bellow illustrates UA’s positioning the market relative to other key players in the industry.
The unparalleled and dominant presence and brand recognition of UA’s main competitors limit the company to unique customer bases and restricted geographical market share. UA’s failure to excel in foreign markets can be attributed to its focused specialized products and sport selectivity, which leaves out other sports and numerous opportunities for creating new customers and market share.
Recommendations
UA should focus and devote most of its marketing and product development on sporting activities that have a global presence to increase its product diversification and capture more market share globally. The threat of being pushed out of a market by larger and more resourceful competitors is always an imminent possibility for UA that can be avoided by the embracing of technology in product design through research and development (R&D), more effective and efficient supply chains, improved network distribution, and sports
marketing.