Under Armour (UA) is an American sports apparel manufacturer. A former University of Maryland football player‚ Kevin Plank‚ started with a simple plan to develop an exclusive T-shirt. This style of T-shirt was to help keep perspiration off your skin rather than absorb it. A T-shirt that functioned alongside your body to control ones temperature and enhance performance. Under Armour was founded in 1996 and went public on November 17‚ 2005. Their mission is to “Make all athletes better through passion
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VERTICAL INTEGRATION: A way to measure if a firm has high vertical integration is through a value added in sales ratio. If it is high‚ this means that the firm is vertically integrated. Volkswagen’s sales are one of the highest with respect to its competitors. Volkswagen is known for being a “manufacturer in-house” because of its extensive set of operations‚ facilitating a high level of vertical integration in most of its plants. Not only include the process of manufacture‚ it also includes the
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of the distribution member of the distribution channel in terms of size‚ expertise‚ of influence coordinates the tasks of each member in the channel (Page 269). This is the type of distributor SUPERVALU is. 2. Describe vertical integration at SUPERVALU. Vertical integration is defined in our Marketing Essentials textbook as the acquisition or merger with an intermediary in the channel that is either a supplier or a buyer (Page 270). SUPERVALU has grown to have networked with retail chains.
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Starbucks & Vertical Integration Ques 1. Starbuck’s value chain is farmers‚ roasting‚ distribution‚ and retail. Raw Materials (Coffee Beans): Coffee bean farming is not vertically integrated into Starbucks; the company purchases coffee beans from farmers. Starbucks choose to outsource farming due to the low potential hold-up problem. For its coffee‚ Starbucks uses only high-quality Arabica beans‚ instead of regular commodity and lower quality robusta beans. Since there are a lot of market
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The second type of integration is vertical integration. This is when a company owns different production levels on the chain of distribution. When a company which is an airline owns hotels and owns a travel agency they would be vertically integrated because they own different sections of the chain of distribution. Companies tend to become vertically integrated because it gives them more control and power over their production. When the company owns a few of the sections on the chain of distribution
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OneSource One-Stop Report Under Armour Inc 27 November 2012 OneSource One-Stop Reports for Under Armour Inc Under Armour Inc 3 rd Floor‚ 1020 Hull Street Baltimore‚ MD 21230 United States Tel: 410-454-6428 Fax: 410-468-2516 Toll Free: (888) 427-6687 www.underarmour.com Employees: Company Type: Corporate Family: Traded: Incorporation Date: Auditor: 5‚400 Public Parent 40 Companies New York Stock Exchange: 1996 PricewaterhouseCoopers LLP Financials in: USD (mil) UA Fiscal Year End:
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expertise in new markets and technology • E.g. Software technology flop • Slow response to market volatility • Over expansion into differentiated products • Dilution of brand • Market saturation Threats: • • • • Competitor entrance • E.g. Under Armour “I Will” campaign Macroeconomic slowdown Product cannibalization Athlete reputational challenges • Lance Armstrong‚ Tiger Woods‚ A-Rod Section 1: Nick Bazarian‚ Jesse Lampert‚ Jorge Magana‚ Cara McKenna‚ Jan Tomaszewski‚ Karen Zhang Study
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4 Tips While Buying Under Armour Clothes. Under amour is an American company which deals in sports clothing that has spotted a very respectable place in the world market in the domain of sporting goods. They have manufactured great apparels for outdoor events such as fishing‚ hunting etc for both the genders and all age groups. The hunting clothes serves two purposes of providing warmth and comfort. These have become basic necessities in the extreme conditions. They provide safety and comfort simultaneously
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ADVANTAGES OF VERTICAL INTEGRATION It leads to reduction of transportation costs as the common ownership results in closer geographic proximity. The transaction costs can be controlled if a firm acquires the other firms in the vertical chain‚ then one division of the same company will transfer goods to other divisions. So‚ transaction costs in form of transport‚ cost of negotiation‚ cost of control etc. will be eliminated. The overall average cost of the firm will decrease because if the divisions
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Analysis of the financial data for Under Armour Inc. & Nike Inc. 1. Liquidity | Comparison between Nike & Under Armour | | 2010 | 2009 | Current Ratio | •Both companies have a ratio that is higher than the dangerous 1.0 current ratio.•The current Ratio of Under Armour is a bit higher than Nike`s which means that Under Armour is more efficient in terms of the operating cycle or in other words the ability to turn its products into cash. | •Both companies have a ratio that is higher
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