Industry and Competitive Situation Analysis

1. Industry and Competitive Situation Analysis Alex Raney Allen Hicks Anthony Brown Braden Walker Christian Grandorf

2. 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.

3. Background of Columbia • http://www.youtube.com/watch?v=pImbhMK7CIg • http://www.youtube.com/watch?v=ZBgQpyxs6jQ

4. Industry Analysis • Very competitive • Seasonality • Innovation and technology • Global

5. Competition • Rapid growth • Hundreds of competitors • Unique customer offerings

6. Seasonality • Every company within the market faces seasonality • Different product lines • Strategy

7. Innovation and Technology • Under Armour- Kevin Plank 1996 • Unique for whatever outdoor activity

8. Global • Distribution • Risk • Unique markets

9. SWOT Analysis-Strengths • Cost position is lower than competitors • Product diversity • Extent of distribution • Continued growth year after year

10. 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

11. 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

12. SWOT Analysis-Threats • Competitors expanding into their market • Increased regulation in manufacturing countries • Growing wages in manufacturing countries

13. 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

14. Transportation Strategy • Products are moved to their markets via ocean freight • Finished cotton goods imported into the United States incur a 15.9% tariff

15. Distribution Strategy • Products available in one hundred countries • Uses a mix of independent distributors and direct to consumer sales

16. 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

17. Market Placement • Retail stores and outlets • Event sponsorships • Outfitting Olympic teams and competitors

19. Under Armour • Target customers: Athletes, now trying to expand into casual gear as well for the non-athletes

20. 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.

21. 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.