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Industry and
Competitive Situation
Analysis
Alex Raney
Allen Hicks
Anthony Brown
Braden Walker
Christian Grandorf
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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.
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Background of Columbia

http://www.youtube.com/watch?v=pImbhMK7CIg
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
http://www.youtube.com/watch?v=ZBgQpyxs6jQ
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Industry Analysis

Very competitive

Seasonality

Innovation and technology

Global
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Competition

Rapid growth

Hundreds of competitors

Unique customer offerings
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Seasonality

Every company within the market faces seasonality

Different product lines

Strategy
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Innovation and Technology

Under Armour- Kevin Plank 1996

Unique for whatever outdoor activity
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Global

Distribution
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Risk

Unique markets
2011
United States
LAAP
EMEA
Canada
Total
2010
2009
Net Sales
$ 948.0
341.0
275.4
129.6
% of Sale
s
Net Sales
56.0 % $ 881.0
20.1
263.4
16.3
222.4
7.6
116.7
% of Sale
s
Net Sales
59.4 % $ 736.9
17.7
203.2
15.0
197.4
7.9
106.5
% of Sale
s
59.2 %
16.3
15.9
8.6
$ 1,694.0
100.0 % $ 1,483.5
100.0 % $ 1,244.0
100.0 %
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SWOT Analysis-Strengths

Cost position is lower than competitors

Product diversity

Extent of distribution

Continued growth year after year
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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
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SWOT Analysis-Opportunities

Expand the sales of their warm weather lines

Expand the OMNI Tech use in products
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Continue to expand in the LAAP Region

Grow their direct to consumer sales
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SWOT Analysis-Threats

Competitors expanding into their market
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Increased regulation in manufacturing countries
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Growing wages in manufacturing countries
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Production Strategy

Production is outsourced to foreign manufacturers
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Vietnam and China account for 70% of apparel production and
90% of footwear
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Over one hundred independent manufacturers
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Operates liaison offices in 7 countries, staffed by Columbia
employees
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Transportation Strategy

Products are moved to their markets via ocean freight

Finished cotton goods imported into the United States incur a
15.9% tariff
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Distribution Strategy

Products available in one hundred countries
Net Sales
United States
LAAP
EMEA
Canada
Total

% of Sales
947
56.70%
277
22.60%
236.6
13.80%
114.7
6.90%
1,669.60
100%
Uses a mix of independent distributors and direct to
consumer sales
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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)
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Columbia went public sixteen years ago and has since then grown by 473%
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Currently valued at 2.83 billion dollars
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34.6 million shares outstanding, 66% held by insiders
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Revenue of 1.68 billion
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Gross Profit of 743.66 million
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Cash Flow of 274.27 million
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Net Sales decreased 1% in 2013
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Market Placement

Retail stores and outlets
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Event sponsorships
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Outfitting Olympic teams and
competitors
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Under Armour
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Target customers: Athletes, now trying to expand into casual
gear as well for the non-athletes
Company
Name
Revenues
Gross Net Income
Margi
n
EBITDA
Total Assets
Total
PE Market Employee Share
Liabilities Ratio
Cap
s
Price
Under 2,332,051,000 48.74 162,330,000 312,226,000 1,577,741,000 524,387,000 68.16 8,775 M
Armour
Inc.
Columbia 1,684,996,000 44.13
Sportswea
r Co.
94,341,000 171,794,000 1,605,588,000 360,170,000 29.558 2,783 M
8
7,800
102.24
4,320
80.40
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The North Face

North Face is expected to double VF Corporation’s revenue
by 2015 to $3 billion a year.
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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.
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Patagonia
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Patagonia reached $540 million in revenues in 2011
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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.
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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