+Industry and Competitive Situation Analysis

Alex RaneyAllen HicksAnthony BrownBraden WalkerChristian Grandorf

+Background of Columbia

Formed from a hat company into a sportswear company in 1938.

Create innovative outdoor apparel

Extremely popular international brand since the 1970’s

Forbes Top 100 most trustworthy companies

Apparel magazine Top 100 most innovative companies.

+Background of Columbia

http://www.youtube.com/watch?v=pImbhMK7CIg

 

http://www.youtube.com/watch?v=ZBgQpyxs6jQ

+Industry Analysis

Very competitive

Seasonality

Innovation and technology

Global

+Competition

Rapid growth

Hundreds of competitors

Unique customer offerings

+Seasonality

Every company within the market faces seasonality

Different product lines

Strategy

+Innovation and Technology

Under Armour- Kevin Plank 1996

Unique for whatever outdoor activity

+Global

Distribution

Risk

Unique markets 2011 2010 2009

Net Sales % of Sale

s Net Sales % of Sale

s Net Sales % of Sale

s United States $ 948.0 56.0 % $ 881.0 59.4 % $ 736.9 59.2 % LAAP 341.0 20.1 263.4 17.7 203.2 16.3 EMEA 275.4 16.3 222.4 15.0 197.4 15.9 Canada 129.6 7.6 116.7 7.9 106.5 8.6

Total $ 1,694.0 100.0 % $ 1,483.5 100.0 % $ 1,244.0 100.0 %

+SWOT Analysis-Strengths

Cost position is lower than competitors

Product diversity

Extent of distribution

Continued growth year after year

+SWOT Analysis-Weaknesses

No corporate owned manufacturing Does not maintain long term contracts Quality control issues

Affected by the unstable price of raw materials High cost of transportation

+SWOT Analysis-Opportunities

Expand the sales of their warm weather lines

Expand the OMNI Tech use in products

Continue to expand in the LAAP Region

Grow their direct to consumer sales

+SWOT Analysis-Threats

Competitors expanding into their market

Increased regulation in manufacturing countries

Growing wages in manufacturing countries

+Production Strategy

Production is outsourced to foreign manufacturers Vietnam and China account for 70% of apparel production

and 90% of footwear

Over one hundred independent manufacturers

Operates liaison offices in 7 countries, staffed by Columbia employees

+Transportation Strategy

Products are moved to their markets via ocean freight

Finished cotton goods imported into the United States incur a 15.9% tariff

+Distribution Strategy

Products available in one hundred countries

Uses a mix of independent distributors and direct to consumer sales

Net Sales % of SalesUnited States 947 56.70%LAAP 277 22.60%EMEA 236.6 13.80%Canada 114.7 6.90%Total 1,669.60 100%

+Financial Analysis

Columbia Sportswear Company (COLM) stock on the NYSE has increased from 57.07 to 83.25 in a Fifty Two week span (April 1, 2013 to April 1, 2014)

Columbia went public sixteen years ago and has since then grown by 473%

Currently valued at 2.83 billion dollars

34.6 million shares outstanding, 66% held by insiders

Revenue of 1.68 billion

Gross Profit of 743.66 million

Cash Flow of 274.27 million

Net Sales decreased 1% in 2013

+Market Placement

Retail stores and outlets

Event sponsorships

Outfitting Olympic teams and competitors

+

+Under Armour

Target customers: Athletes, now trying to expand into casual gear as well for the non-athletes

Company Name

Revenues Gross Margi

n

Net Income EBITDA Total Assets Total Liabilities

PE Ratio

Market Cap

Employees

Share Price

Under Armour

Inc.

2,332,051,000

48.74 162,330,000

312,226,000

1,577,741,000

524,387,000

68.16 8,775 M 7,800 102.24

Columbia Sportswear Co.

1,684,996,000

44.13 94,341,000 171,794,000

1,605,588,000

360,170,000

29.5588

2,783 M 4,320 80.40

+The North Face

North Face is expected to double VF Corporation’s revenue by 2015 to $3 billion a year.

Target Customers: aimed at college students, switching to a more stylish apparel

The North Face is apart of the VF Corporation which is the largest apparel company in the world.

+Patagonia

Patagonia reached $540 million in revenues in 2011

Target customers: geared toward eco-friendly buyers

Patagonia focuses more on being green than any of its competitors and even makes most of its apparel of recycled materials.

+

Key Success Factor/ Competitive Variable

Weight

Columbia

Under Armour

North Face

Patagonia

Quality/product performance .20 10 9 10 8

Reputation/image .10 9 9 10 9

Raw material access/cost .10 8 8 7 3

Technological skills .10 10 8 7 7

Manufacturing capability .15 10 10 9 10

Marketing/distribution .20 7 9 5 4

Financial strength .10 8 9 10 7

Relative cost position .05 7 7 6 6

Overall strength rating 1.00 8.75 8.85 8.05 6.8