This guy is so smart! No wonder they call him biz doc. How he can deconstruct a company’s financials and correlate them to societal changes is next level! I learn so much from these.
I love hearing the startup stories of how companies like this got started. Especially when followed up with expert analysis on their current issues and how they got there. Amazing content!
Freezing Trap - Don't listen to half the shit that Patrick says, he's your typical bullshitter like Tai Lopez. Tom actually has analysis instead of just the laughable personal life coach bullshit from Patrick.
As a runner I remember when seemingly overnight everyone I saw pounding the pavement was wearing UnderArmour instead of Nike. Late 90's I think. Would love to see the first nine years alone in a chart. Hard to see, but that growth is exponential. A detailed look at how they managed that growth would be useful in understanding how not to become overwhelmed by success. Can't believe Plank did not see the effect Kohls would have. It's not been a surprise that Plank knows nothing about shoes. As a company they seem to have forgetten that what they were selling perfomance and comfort athletic wear. Looking at their web catalog now, it's just stock model in stock poses wearing what might as well be stock gear. If they want to get serious about running shoes, they'd better find some elite runners who want their shoes. Great case study!
These videos can be summed up to: "don't go public". The moment a company stops having growth, it has stock price issues. The fact is that no company can have infinite growth, and will find it's sweet-spot if there is a market for the product, but the stock market don't have patience for zero-growth companies.
17:30 As an SAP consultant myself, I salute Under Armour's initiative ;). Companies from all sizes do require integrated systems in order to perform their processes more efficiently. Usually the decision of implementing SAP is taken 2 to 3 years before the system is up and running. So I would that in 2014 or 2015 they decided to implement SAP, and that was right at the beginning of their issues. However, it also explains the decrease in profit they endure in the past few years. Thanks Tom, it's a great video!!!
Thank you for adding comments and being a person that knows what they’re talking about regarding SAP. I really appreciate that you’re adding to the dialogue. Thanks - Tom
I'll explain my reasoning why I've never purchased anything from UA. Firstly their entire shoe line look horrible and the Steph Curry signature sneakers look absolutely atrocious. A few years ago Adidas were in a similar situation their designs stagnated. And they went and poached a few designers from Nike. And the recent NMD designs for Adidas & Yeezy's really brought new life to Adidas. UA needs to fire their entire design staff and get a fresh new designers ideally poach from Nike. Otherwise no one under 25 will wear their footwear.
So true. They need to bring new designers onboard. Someone please tag the CEO of UA to watch this video. Plus he needs to appoint a visionary CEO with a strong creative core and retire himself. If he fails to do this his company will not survive 2018 let alone 2019. He needs to get back to basics and readopt the entrepreneur fighting spirit. No matter how big you get, never ever lose your entrepreneurial edge.
Noussira Daman Retire himself 😂😂😂😂😂😂 I think you're right. But rarely do founder give up power it takes a certain kind of humbleness few men have to step down when they can't handle the job. The Google boys did that at the beginning they let Eric manage it.
Great case study, Underarmour is one of my favourite sports brands. One thing you did not mention was Dwayne Johnson's involvement with the brand. He was also one of the earlier celebrities to endorse it in his movies and social media.
I honestly think Under Armour failed by not having an amazing team of influencers like Nike/Adidas had. Now that Under Armour has "The Rock" I think this will help them out tremendously. People want to buy from people they like and admire.
Brian Tobias You can have every influencer in the world wearing your brand. If you're product is shit or (perceived to be shit like under armour among teenagers) failure is promised. No cool kid in America is asking their parents to buy them UA sneakers. Kevin Durant literally killed any credibility they had.
Like he said, they got the two biggest stars coming up in 2013 but then the CEO got political and alienated 50% of their customers and their biggest athlete. Not to mention Curry's shoes were really dumb looking.
It's not about influence. Most of they're shoes suck. The Curry line is basically the same shoe year after year. The Rock shoe and clothing line is great though. If you have good products they'll sell.
2:10 in addition to getting their product into _Any Given Sunday_ , that year they also got a product placement deal for the Keanu Reeves/Gene Hackman film _The Replacements_ .
The reason why the politics caused problems is, the shoes and such are 'black' market items and blacks don't like Trump though a growing number are changing their minds lately. Underarmor shoes were nearly totally aimed at black buyers. So supporting Trump ticked that market off. On the other hand, that market is heavily oversaturated plus stores selling this junk are often raided by blacks seeking to steal stuff so overhead costs are pretty high. Profits, not so hot.
The "now what, then what" analogy is true for everyday life as well, if you want to succeed as an individual. And not succeed just monetarily, but in all aspects. I like your channel.
Not an entrepreneur, but I love your case study videos, Tom. Always looking forward to them and this is another great one! So interesting. Thanks and keep up the great work.
I think that one of the reasons this happens is that an entrepreneur mindset can take you so far. Once you become a billion dollar public firm you cannot behave like a mom and pop shop. You should still have input and communicate your vision but after a certain point they should defer to a more seasoned CEO that has a history of running billion dollar firms (with PR experience and all). It's rare that you found a startup that balloons and the maker is still in charge all the way through. It's easy to point at the winners bland say it's possible, because it is possible but this is the story of so many companies.
Hey, just wanted You to know, that there is someone from Lithuania and 15yr old:) And trying to run some business. From you valuetainment I learn about sales strategy, marketing, some scripts how to talk with clients, strongest tips in the world... From Grant Cardone i learn how to sell calling others... And from GaryVee I get inspiration:) Thank You Pat for helping my ideas come to real-life, and not to just dream! Case study is amazing how always:)
I’m very pleased the content was helpful to you and woke you up. Now that you’re awake I hope you crush it in your business and have a fantastic year. Thanks - Tom
That was very very interesting to watch, I enjoyed your profound analysis, showing how business can be affected by so many aspects that are sometimes seen separate from the actual business and how bad leadership can increase the negative outcome caused by these. Great content right there, keep it up!
Would love to see you make a video on Gibson guitars and where you see the company heading in the wake of the federal raids on their manufacturing plants, the lackluster instruments they've been cranking out in recent years, the recent change in CEO's, etc.
Your on point review hits home at 20:15, stay neutral. As a Realtor I was color blind, as a Police officer I was Blue and as a leader of my company, I find myself honest, forthright and especially mindful of misinterpreted thinking. I drive my company, not an agenda. I get paid for making a good product and never lose sight of that mantra. Another fine Valuetainment lesson, Thumbs UP! 1.3k
I bought my first under armour shirt in 1999. I got a direct mailer and it sold me on the advantages of the shirt vs regular cotton shirts. I’ve been a UA addict ever since.
Hubris is overtaking them, I bought a few UA compression long sleeves and they where weird.. One of them the waist hem was waaay past my crotch, and the arms where the width of a XS on an XL torso, weird AF. Then another top was 4 way stretch but at a certain point the 'stretch' of the fabric just stopped dead, you would move and it would just suddenly go stiff and cause a very uncomfortable constriction, just really unfathomable issues to have with these types of garments. I've been using Nike Combat gear for like forever now and it's all great.
That’s my favorite word! On the product side I absolutely agree with you. They need to get their act together today! Thank you for letting everyone know about an actual review of a their MAIN product - the UA fabric garment. Thanks - Tom
Straight away they should be bringing in NBA players, Pro Golfers and even runners to help design, develop and test shoe protos. That entire process has value in a few ways: 1. You're products truthfully have a design fit for purpose 2. You win buy in from key influential athletes (they are literally invested in the products) 3. The entire process can be turned into marketing reinforcing and communicating point 2 and 1 Sure, some athletes will know balls all about product development and what makes a great shoe. Doesn't matter. It doesn't matter because you're still getting 2 and 3. Number 1 is a bonus you get if the athlete happens to be awesome and gives you some useful feedback for your go to market product. I wonder how they used Curry. I wonder if Curry was given the opportunity to work this way or if he was just a 'face'.
Dan Willis you’re missing out on real shoes then. Nike is pure garbage, in my opinion. From the Free shoes, to the shocks. They’ve destroyed my knees, chins, and calves during my track season.
You missed it @Arsenio Buck. I wasn't advocating a brand product but moreso the story of how the brand rose to its position in the market. Sorry to hear Nike shredded you up, but the story of how the company came to be the big name in athletics is an amazing one for any entrepreneur out there.
UA dive so hard into digital fitness and wearable fad as nike / adidas pulled out. The opportunity cost alone there on money and time is probably enormous.
Dear Under Armour, if you ever read this take my advice. You really need to capitalise on the Indian Market. Please come here (not on Amazon where all ur products are sold at 200% price -including customs) Trust me, Indians love UA. Bring Dwayne Johnson here and run a marketing campaign and just watch how your company bounces back in a year. I always ask my friends coming down from the US to bring me UA shoes and apparel every year. And yes, if you want the teens to buy ur products, you need fresh designs. I’m 33 and I chose functionality over design but everybody’s not like me.
True that mate, I genuinely love thier products but their current distribution with Amazon is never going to let them grow here, especially given the ridiculous pricing.
I personally prefer classic designs even as a teen but most teenagers prefer trendy stuff so UA should retain their designs under the name UA classics and then start becoming more hip in design just like Nike's . Nike sometimes sell their famous classic styles from time to time because some people do miss them.
Just bought a pair of UA running shoes... always been more into ASICS or NB... but I tried a pair of UA shoes they were the best in terms of comfort and ride. I have always seen UA as a gym gear brand that happened to make shoes and then trainers not proper running shoes...
Hey Biz doc love your videos showing stock prices and historical context. This is a big ask but can you make a series (or even a video + instructions) on how you do the research and learn about these companies so we can learn how to do this ourselves?
Bizdoc mailbag is a good experiment. People don't realize this but you need to treat youtube as a business. You need to target a group, give value, experiment, create a brand image, and so much more. I've been reading the books that Patrick suggested on business and plan to use some of those in my youtube channel. I know how I plan to make money on my youtube channel by being educational on autism. Now all I have to do is keep working and being patient.
Thank you for that! Good luck with your educational channel - a GREAT cause to be associated with! My goal is to give a nice set of answers in the mailbag episode. Thanks - Tom
Great points throughout. Product development, listening and anticipating the market, and effective marketing are definitely key. But that doesn't explain how they went from great net profit margins to huge losses. While UA will face serious problems with top line revenues if they don't get the product and marketing right, something else (or somethings else) are eating them alive from the inside out. I'd love to hear another case study on why they experienced these losses.
My guess is micromanagement. One of the biggest strengths of NIKE is that Phil knight is a collaborative leader … rare but also explains how he saw athletes advocating for his shoes (before influencer marketing as we know it today) as the key to becoming and staying relevant.
I bought 200 share of UA for 41.00 lost 50% at 21 on its way down to 11. Will never buy another share in my life and Keven Plank got me once but he won't get me again. I'm sure that I am not the only investor that feels this way. BTW you forgot to mention the UA/UAA stock manipulation used to keep KP in charge.
This reminds me of the Red Bull study because they created a strong brand by sponsoring unique events. Under Armor hasn’t distinguished itself like that though.
As Dan Lok said, branding is very important. You should know your market. If you are marketing to teens, you know that they prefer trendy styles because they are fickle buyers.
Can you do stories on Service companies? Like big marketing companies, tele sales companies or something in this route? I feel like its much easier to make money with products today then with services.
I am right there with you. I did not buy any and I do not own any. So it would make me very nervous to buy anything right now knowing about the massive debt and the issues they’re having with product and branding. Thanks - Tom
It doesn’t help that they had a deal with Major League Baseball to become their official uniform provider in 2019 like Nike is for the NBA and NFL and Adidas is for the NHL and Major League Soccer. But had to pull out of it because financially they couldn’t afford it and Nike picked it up. I like Under Armour even their shoes and I hope they are able to turn things around quickly.
Great analysis, i think beside all the solution you have mentioned. One key solution is that kevin must left being the CEO at 2017 to clean the image of under armour and to recover the loss caused by his political opinions. Then move to the operations and marketing etc. Issues which clearly can be enhanced by new CEO.
I agree with you, Kevin should fix the operations mess so that it’s a clean desk for the new CEO who can drive marketing and branding and start attracting fantastic athletes to be symbols and spokesperson’s of the brand. Thanks - Tom
Hey, great video! Was wondering if you could include The Lean Startup concepts by Eric Ries in your future case studies. Like in this case, they had a lot of vanity metrics ( increasing revenue and net income) which obviously made people invest more and increase the stock price. But beneath all that would be innovation accounting, where does our revenue come from exactly? What's our engine of growth? Burn rate?. Also concepts like Growth and Value hypothesis mentioned in the book. If you could cover those that would be awesome and a lot more quality info! ( The book is mainly based on startups so I guess it will only apply in the beginning of the video)
I don't know if they have ever collaborated with any sort of aparrel brand. If not, they really have to. This can increase brand recognition and customer reach. They are limiting themselves by just being a sports wear brand. Look at the collaborations of Nike and Adidas. They collaborate with all sorts of apparel brands.
Love the case studies! It's like a Stanford entrepreneurship masterclass. Just wish some more case studies could be done on Life Sciences & Pharma. Actelion and Kythera biopharmaceuticals would be very interesting to see :)
Appreciate the comment very much. I think those Pharma suggestions are also solid. I haven’t gone in that direction and I think I need to do one. Thanks - Tom
What hurt Under Armour more than anything is they started plastering their logo onto everything and lost sight of quality. On top of that they printed logos that were far too large for the garment bordering on tacky.
Stellar video, thanks! Subscribed. QUESTION: How much of your assessment of the failures and outcomes is 100% factual and shared by other experts and analysts, and how much is subjective, theory, and "one of many" possible explanations? (e.g. how do we know that his interview about SAP and other specific actions is what led to certain failures and financial problems?) P.S. In a video about apparel, you need a better fitting shirt :-)
@Valuetainment Love your videos for their content but your editing needs some work. Please put channel message stuff like your mailbag thing at the beginning or end of the video. Thanks, and keep making great content.
Those app/software purchases seemed a bit off. At least from a regular customer's standpoint, there is really no connection between clothing and app. Unless you have some smart clothing, those two don't really mesh. There's a TON of sports tracking software out there so it just seems huge risk, and they are not really in that game.
This guy is so smart! No wonder they call him biz doc. How he can deconstruct a company’s financials and correlate them to societal changes is next level!
I learn so much from these.
Thank you very much. You may not know this but I used to teach MBA students at several California universities. Thanks - Tom
The "inside-vs-outside" focus especially during tough times is my favorite takeaway from this Case Study. Great job Doc, thank you.
I love hearing the startup stories of how companies like this got started. Especially when followed up with expert analysis on their current issues and how they got there. Amazing content!
Glad to provide it. Thanks - Tom
Valuetainment Patrick talked about making big things small and seeing a 5b company making 17k in a year makes it much more achievable!
Freezing Trap - Don't listen to half the shit that Patrick says, he's your typical bullshitter like Tai Lopez. Tom actually has analysis instead of just the laughable personal life coach bullshit from Patrick.
As a runner I remember when seemingly overnight everyone I saw pounding the pavement was wearing UnderArmour instead of Nike. Late 90's I think. Would love to see the first nine years alone in a chart. Hard to see, but that growth is exponential. A detailed look at how they managed that growth would be useful in understanding how not to become overwhelmed by success. Can't believe Plank did not see the effect Kohls would have. It's not been a surprise that Plank knows nothing about shoes. As a company they seem to have forgetten that what they were selling perfomance and comfort athletic wear. Looking at their web catalog now, it's just stock model in stock poses wearing what might as well be stock gear. If they want to get serious about running shoes, they'd better find some elite runners who want their shoes. Great case study!
These videos can be summed up to: "don't go public".
The moment a company stops having growth, it has stock price issues. The fact is that no company can have infinite growth, and will find it's sweet-spot if there is a market for the product, but the stock market don't have patience for zero-growth companies.
This is an interesting point. Loctite is not a public company and there products appear in new car brands.
17:30 As an SAP consultant myself, I salute Under Armour's initiative ;). Companies from all sizes do require integrated systems in order to perform their processes more efficiently. Usually the decision of implementing SAP is taken 2 to 3 years before the system is up and running. So I would that in 2014 or 2015 they decided to implement SAP, and that was right at the beginning of their issues. However, it also explains the decrease in profit they endure in the past few years. Thanks Tom, it's a great video!!!
Thank you for adding comments and being a person that knows what they’re talking about regarding SAP. I really appreciate that you’re adding to the dialogue. Thanks - Tom
I'll explain my reasoning why I've never purchased anything from UA. Firstly their entire shoe line look horrible and the Steph Curry signature sneakers look absolutely atrocious. A few years ago Adidas were in a similar situation their designs stagnated. And they went and poached a few designers from Nike. And the recent NMD designs for Adidas & Yeezy's really brought new life to Adidas. UA needs to fire their entire design staff and get a fresh new designers ideally poach from Nike. Otherwise no one under 25 will wear their footwear.
I am right there with you - which is why I am hard on CEO Kevin Plank... IT’S ALL ABOUT PRODUCT! They need to get it together. Thanks - Tom
NIke apparently hired away UA’s top designer, Dave Dombrow in 2016. UA hasn't been able to replace a guy like him since then.
So true. They need to bring new designers onboard. Someone please tag the CEO of UA to watch this video. Plus he needs to appoint a visionary CEO with a strong creative core and retire himself. If he fails to do this his company will not survive 2018 let alone 2019. He needs to get back to basics and readopt the entrepreneur fighting spirit. No matter how big you get, never ever lose your entrepreneurial edge.
This is why you should never be stingy with giving perks, pay or even a piece of your company to your top talent otherwise you will lose them.
Noussira Daman Retire himself 😂😂😂😂😂😂 I think you're right. But rarely do founder give up power it takes a certain kind of humbleness few men have to step down when they can't handle the job. The Google boys did that at the beginning they let Eric manage it.
Great case study, Underarmour is one of my favourite sports brands. One thing you did not mention was Dwayne Johnson's involvement with the brand. He was also one of the earlier celebrities to endorse it in his movies and social media.
I honestly think Under Armour failed by not having an amazing team of influencers like Nike/Adidas had.
Now that Under Armour has "The Rock" I think this will help them out tremendously. People want to buy from people they like and admire.
I do agree with you - BUT they need great products for those influencers to pimp. Thanks - Tom
Brian Tobias You can have every influencer in the world wearing your brand. If you're product is shit or (perceived to be shit like under armour among teenagers) failure is promised. No cool kid in America is asking their parents to buy them UA sneakers. Kevin Durant literally killed any credibility they had.
Of course, but the rock the one expensive athlete. I also believe they should focus more on the us market, than overseas sales!
Like he said, they got the two biggest stars coming up in 2013 but then the CEO got political and alienated 50% of their customers and their biggest athlete. Not to mention Curry's shoes were really dumb looking.
It's not about influence. Most of they're shoes suck. The Curry line is basically the same shoe year after year. The Rock shoe and clothing line is great though. If you have good products they'll sell.
2:10 in addition to getting their product into _Any Given Sunday_ , that year they also got a product placement deal for the Keanu Reeves/Gene Hackman film _The Replacements_ .
Never mix business with politics . great job !
Thank you, as always, sir!!! Thanks- Tom
The reason why the politics caused problems is, the shoes and such are 'black' market items and blacks don't like Trump though a growing number are changing their minds lately. Underarmor shoes were nearly totally aimed at black buyers. So supporting Trump ticked that market off. On the other hand, that market is heavily oversaturated plus stores selling this junk are often raided by blacks seeking to steal stuff so overhead costs are pretty high. Profits, not so hot.
Thanks Tom. I love these case studies. I can't get enough of them.
Every other Friday! See you next time, thank you for watching. Thanks - Tom
Let your COO handle the inside and as CEO you should focus on the outside.....great lesson..Thanks for this content.
The "now what, then what" analogy is true for everyday life as well, if you want to succeed as an individual. And not succeed just monetarily, but in all aspects. I like your channel.
Biz doc definetely the most entertaining presenter there is, keep it up, you’re amazing!
Not an entrepreneur, but I love your case study videos, Tom. Always looking forward to them and this is another great one! So interesting. Thanks and keep up the great work.
I sincerely appreciate the support and I’m glad you find them useful. Have a great weekend, thanks - Tom
I think that one of the reasons this happens is that an entrepreneur mindset can take you so far. Once you become a billion dollar public firm you cannot behave like a mom and pop shop. You should still have input and communicate your vision but after a certain point they should defer to a more seasoned CEO that has a history of running billion dollar firms (with PR experience and all). It's rare that you found a startup that balloons and the maker is still in charge all the way through. It's easy to point at the winners bland say it's possible, because it is possible but this is the story of so many companies.
Hey, just wanted You to know, that there is someone from Lithuania and 15yr old:) And trying to run some business. From you valuetainment I learn about sales strategy, marketing, some scripts how to talk with clients, strongest tips in the world... From Grant Cardone i learn how to sell calling others... And from GaryVee I get inspiration:) Thank You Pat for helping my ideas come to real-life, and not to just dream! Case study is amazing how always:)
HELLO LITHUANIA!!! We are very pleased to hear that we are helping you in this way! ALL THE BEST TO YOU!! - Tom
Thanks:))
Congrats on your 1 million subscribers🎉🎉🎉 More power to you! Very interesting stuff to watch while stuck in traffic
I just love Under Armour. Fingers crossed that it’s not over for them.
I hope they make a comeback, I am with you. Thanks - Tom
Amazing case study. This is the first one I am seeing. Great job!
Just found this channel, I think it's really undervalued
One of your best case studies Mr. Tom. Well done Sr. well done! And Thank you all you guys, y'all awesome.
I think that’s a really interesting question. Five years ago I would have said Nike but now I think Adidas on a global basis is poised. Thanks - Tom
this is exactly where i am now.. thank you for the case study this was really helpful at the right now .. you woke me up
I’m very pleased the content was helpful to you and woke you up. Now that you’re awake I hope you crush it in your business and have a fantastic year. Thanks - Tom
That was very very interesting to watch, I enjoyed your profound analysis, showing how business can be affected by so many aspects that are sometimes seen separate from the actual business and how bad leadership can increase the negative outcome caused by these.
Great content right there, keep it up!
My favorite analyst. Best
Softbank next pls
I love that company and I think that’s a fantastic suggestion. Thanks - Tom
Yup, a good suggestion.
Yes please SoftBank
I really appreciate these videos. Thank you for doing them.
I love these series. Greetings from Berlin doc!
Great video! Thanks for sharing your analysis with the biz community.
I never hear of Under Armour. But this video was very enjoyable.
These thumbnails just keep getting better
Absolutely! The artist is fantastic! Thanks - Tom
Would love to see you make a video on Gibson guitars and where you see the company heading in the wake of the federal raids on their manufacturing plants, the lackluster instruments they've been cranking out in recent years, the recent change in CEO's, etc.
Wow thank you great presentation CEO OF THIS BRAND SHOULD WATCH THIS!!!
Thank you for the support! I appreciate that you were watching! Thanks - Tom
Please keep making these videos .i love them thanks
We will see you every Friday, thank you so much for watching. Thanks - Tom
Love to hear about Walgreen and CVS please. Thank you, and I love your Case studies.
You did leave me better than you found me! Thanks!
Fantastic, that’s my goal! Thanks - Tom
Your on point review hits home at 20:15, stay neutral. As a Realtor I was color blind, as a Police officer I was Blue and as a leader of my company, I find myself honest, forthright and especially mindful of misinterpreted thinking. I drive my company, not an agenda. I get paid for making a good product and never lose sight of that mantra. Another fine Valuetainment lesson, Thumbs UP! 1.3k
thanks for the big efforts in doing these case studies !!!
Appreciate that you understand the effort! Thanks - Tom
I bought my first under armour shirt in 1999. I got a direct mailer and it sold me on the advantages of the shirt vs regular cotton shirts. I’ve been a UA addict ever since.
I agree with you - I love the shirts. Golf Shirts are also very nice - loose fit but same amazing fabrics. Thanks - Tom
I still but Under Armour because I like the logo. I also like the styling of the clothes
Thanks for sharing! I really like the mailbag idea. Can't wait to see what comes out of it
Send me a question! Thank you for the compliment. Thanks - Tom
Good video even better content! I think you really managed to analyse Under Armour and why they might lose in the long-term...
bro i love your videos so much
Hubris is overtaking them, I bought a few UA compression long sleeves and they where weird.. One of them the waist hem was waaay past my crotch, and the arms where the width of a XS on an XL torso, weird AF. Then another top was 4 way stretch but at a certain point the 'stretch' of the fabric just stopped dead, you would move and it would just suddenly go stiff and cause a very uncomfortable constriction, just really unfathomable issues to have with these types of garments. I've been using Nike Combat gear for like forever now and it's all great.
That’s my favorite word! On the product side I absolutely agree with you. They need to get their act together today! Thank you for letting everyone know about an actual review of a their MAIN product - the UA fabric garment. Thanks - Tom
Very well put together Doc! Thank you!
Thank YOU for watching! Thanks - Tom
Straight away they should be bringing in NBA players, Pro Golfers and even runners to help design, develop and test shoe protos. That entire process has value in a few ways:
1. You're products truthfully have a design fit for purpose
2. You win buy in from key influential athletes (they are literally invested in the products)
3. The entire process can be turned into marketing reinforcing and communicating point 2 and 1
Sure, some athletes will know balls all about product development and what makes a great shoe. Doesn't matter. It doesn't matter because you're still getting 2 and 3. Number 1 is a bonus you get if the athlete happens to be awesome and gives you some useful feedback for your go to market product.
I wonder how they used Curry. I wonder if Curry was given the opportunity to work this way or if he was just a 'face'.
Maybe do Puma next? They're trying to get back into basketball and may be an interesting story. And great video!
another great one!
Thanks for the video. Excellent content.
Got so caught up with Nike that I never took the time to learn the story of Under Armour
You are the 1st comment - SQUAAAD! Thanks - Tom
Valuetainment great content like this makes it easy to consume. Keep these bad boys coming!
r/fellowkids
Dan Willis you’re missing out on real shoes then. Nike is pure garbage, in my opinion. From the Free shoes, to the shocks. They’ve destroyed my knees, chins, and calves during my track season.
You missed it @Arsenio Buck. I wasn't advocating a brand product but moreso the story of how the brand rose to its position in the market. Sorry to hear Nike shredded you up, but the story of how the company came to be the big name in athletics is an amazing one for any entrepreneur out there.
This is an awesome analysis. Thank you
UA dive so hard into digital fitness and wearable fad as nike / adidas pulled out. The opportunity cost alone there on money and time is probably enormous.
I don’t disagree with that. They had to make a bet, and they made it, and they lost part of it. Thanks - Tom
Love these vids Tom. You're awesome. Greets from The Netherlands
Hello Netherlands, thank you so much for tuning in. Thanks - Tom
You're so good at this tom!!
Thank you very much for that and thank you for watching. Thanks - Tom
Thanks... amazing work.
Dear Under Armour, if you ever read this take my advice.
You really need to capitalise on the Indian Market. Please come here (not on Amazon where all ur products are sold at 200% price -including customs)
Trust me, Indians love UA. Bring Dwayne Johnson here and run a marketing campaign and just watch how your company bounces back in a year.
I always ask my friends coming down from the US to bring me UA shoes and apparel every year.
And yes, if you want the teens to buy ur products, you need fresh designs.
I’m 33 and I chose functionality over design but everybody’s not like me.
Hey Under Armor, are you listening? I mean are you really listening? - Tom
True that mate, I genuinely love thier products but their current distribution with Amazon is never going to let them grow here, especially given the ridiculous pricing.
I personally prefer classic designs even as a teen but most teenagers prefer trendy stuff so UA should retain their designs under the name UA classics and then start becoming more hip in design just like Nike's . Nike sometimes sell their famous classic styles from time to time because some people do miss them.
Hello Coplay, It's me Under Armour. We refuse to trade with people who shit on streets, Regards, Underarmour
DSPGaming where'd you get that from?
Interesting analysis!
I love your name! Have a great weekend! Thanks - Tom
Awesome case study, a lot of valueable information and great story that follows it.
Thanks sir! - Tom
These videos are great
Just bought a pair of UA running shoes... always been more into ASICS or NB... but I tried a pair of UA shoes they were the best in terms of comfort and ride. I have always seen UA as a gym gear brand that happened to make shoes and then trainers not proper running shoes...
Hey Biz doc love your videos showing stock prices and historical context. This is a big ask but can you make a series (or even a video + instructions) on how you do the research and learn about these companies so we can learn how to do this ourselves?
I could do that, thanks for the suggestion. Thanks - Tom
You are very welcome. Can't wait!
Bizdoc mailbag is a good experiment. People don't realize this but you need to treat youtube as a business. You need to target a group, give value, experiment, create a brand image, and so much more. I've been reading the books that Patrick suggested on business and plan to use some of those in my youtube channel. I know how I plan to make money on my youtube channel by being educational on autism. Now all I have to do is keep working and being patient.
Thank you for that! Good luck with your educational channel - a GREAT cause to be associated with! My goal is to give a nice set of answers in the mailbag episode. Thanks - Tom
Your thumbnails are very bad. You need to heavily edit them and make them flashy so people click them.
Great points throughout. Product development, listening and anticipating the market, and effective marketing are definitely key. But that doesn't explain how they went from great net profit margins to huge losses. While UA will face serious problems with top line revenues if they don't get the product and marketing right, something else (or somethings else) are eating them alive from the inside out. I'd love to hear another case study on why they experienced these losses.
My guess is micromanagement. One of the biggest strengths of NIKE is that Phil knight is a collaborative leader … rare but also explains how he saw athletes advocating for his shoes (before influencer marketing as we know it today) as the key to becoming and staying relevant.
I bought 200 share of UA for 41.00 lost 50% at 21 on its way down to 11. Will never buy another share in my life and Keven Plank got me once but he won't get me again. I'm sure that I am not the only investor that feels this way. BTW you forgot to mention the UA/UAA stock manipulation used to keep KP in charge.
This reminds me of the Red Bull study because they created a strong brand by sponsoring unique events. Under Armor hasn’t distinguished itself like that though.
That is a great point you just made. They should hire you in marketing! Thanks - Tom
David Deters They actually do that.
As Dan Lok said, branding is very important. You should know your market. If you are marketing to teens, you know that they prefer trendy styles because they are fickle buyers.
The only thing I liked from UA was there old compression shorts. They should have known their role as the Rock would say.
Can you do stories on Service companies? Like big marketing companies, tele sales companies or something in this route? I feel like its much easier to make money with products today then with services.
Love this videos!
Appreciate the comment, sincerely. I hope I have left you better than I found you. Thanks - Tom
Great video! I was considering buying the dip but the debt really scares me. Thank you.
I am right there with you. I did not buy any and I do not own any. So it would make me very nervous to buy anything right now knowing about the massive debt and the issues they’re having with product and branding. Thanks - Tom
Can they bounce back though? I'm rooting for em!!
Excellent content! Thank you!
Thank you sir glad to do it. Thanks - Tom
It doesn’t help that they had a deal with Major League Baseball to become their official uniform provider in 2019 like Nike is for the NBA and NFL and Adidas is for the NHL and Major League Soccer. But had to pull out of it because financially they couldn’t afford it and Nike picked it up. I like Under Armour even their shoes and I hope they are able to turn things around quickly.
major camera companies next please! (i think RED would be the most interesting, but also Arri, then maybe Sony, or Canon)
your videos are great dude
Thank you for watching I hope I left you better than I found you. Thanks - Tom
Thanks a lot for the priceless information!
Thank you for watching! - Tom
True Valuetainment.
Love it! Thanks - Tom
Great analysis, i think beside all the solution you have mentioned. One key solution is that kevin must left being the CEO at 2017 to clean the image of under armour and to recover the loss caused by his political opinions. Then move to the operations and marketing etc. Issues which clearly can be enhanced by new CEO.
I agree with you, Kevin should fix the operations mess so that it’s a clean desk for the new CEO who can drive marketing and branding and start attracting fantastic athletes to be symbols and spokesperson’s of the brand. Thanks - Tom
Hey, great video! Was wondering if you could include The Lean Startup concepts by Eric Ries in your future case studies. Like in this case, they had a lot of vanity metrics ( increasing revenue and net income) which obviously made people invest more and increase the stock price. But beneath all that would be innovation accounting, where does our revenue come from exactly? What's our engine of growth? Burn rate?. Also concepts like Growth and Value hypothesis mentioned in the book. If you could cover those that would be awesome and a lot more quality info! ( The book is mainly based on startups so I guess it will only apply in the beginning of the video)
I don't know if they have ever collaborated with any sort of aparrel brand. If not, they really have to. This can increase brand recognition and customer reach. They are limiting themselves by just being a sports wear brand. Look at the collaborations of Nike and Adidas. They collaborate with all sorts of apparel brands.
Another good point. Clearly you were paying attention to the market. Thanks - Tom
Love the case studies! It's like a Stanford entrepreneurship masterclass. Just wish some more case studies could be done on Life Sciences & Pharma. Actelion and Kythera biopharmaceuticals would be very interesting to see :)
Appreciate the comment very much. I think those Pharma suggestions are also solid. I haven’t gone in that direction and I think I need to do one. Thanks - Tom
This is amazing
Great lessons..thank you!
Every Friday! Thanks - Tom
awesome analysis!!!
Glad you enjoyed it thank you for watching. Thanks - Tom
Please do a video on Nike and Adidas!!
I've just binged watched 20 of Tom's case studies. Why pay for an MBA when you can watch free content like this online?
How come no one updated these case studies?
Can you do a case study on why Berkshire Hathaway is so successful, despite not heavily investing in tech stocks?
That’s actually a very interesting angle to take on Warren Buffett and his incredible investment company. Thanks - Tom
Valuetainment Berkshire would be awesome to cover. And the lessons from Warren Buffet are important for long-term investers.
What hurt Under Armour more than anything is they started plastering their logo onto everything and lost sight of quality. On top of that they printed logos that were far too large for the garment bordering on tacky.
Very informative
Stellar video, thanks! Subscribed. QUESTION: How much of your assessment of the failures and outcomes is 100% factual and shared by other experts and analysts, and how much is subjective, theory, and "one of many" possible explanations? (e.g. how do we know that his interview about SAP and other specific actions is what led to certain failures and financial problems?)
P.S. In a video about apparel, you need a better fitting shirt :-)
When he was reading a quote near 20:00 he sounded like Morty 😂
@Valuetainment Love your videos for their content but your editing needs some work. Please put channel message stuff like your mailbag thing at the beginning or end of the video. Thanks, and keep making great content.
Those app/software purchases seemed a bit off. At least from a regular customer's standpoint, there is really no connection between clothing and app. Unless you have some smart clothing, those two don't really mesh.
There's a TON of sports tracking software out there so it just seems huge risk, and they are not really in that game.
How do you make these case studies? where can you find all this information?
really great video!!!!
I appreciate that. Thanks - Tom
So good.
Awesome job Tom!!!!!! A lot of information, but you kept it attention alive with the momentum and super educational!!
I appreciate those comments. That’s exactly what we are trying to do! Thanks - Tom