But a company want to be success, which may occur many expenses, such as research expenses, Under Armour has his own laboratory to develop the new technique and promotion or sponsor to get popularity, founder of Under Armour believe that word-of-mouth, therefore Under Armour sponsor many recreational team and youth tournaments, therefore the substantial. Under Armour needs to get its name out to the public as much as Nike and Adidas in order to steal customers away, not to mention reaching up-and-coming teens who will be looking for gear to perform in when playing their desired sport. When the capabilities originate from an attribute which other firms do not have then they form an organizations distinctive capabilities. In 2016 , sales through our wholesale channel represented approximately 65% of our net revenues. How strong are the competitive forces confronting Under Armour, Nike, and The adidas Group? From time to time, we may invest in business infrastructure, new businesses, and expansion of existing businesses, such as the ongoing expansion of our network of brand and factory house stores and our distribution facilities, the expansion of our corporate headquarters, investments to implement our global operating and financial reporting information technology system, or investments in our Connected Fitness business. We face increased risk of order reduction or cancellation when dealing with financially ailing customers or customers struggling with economic uncertainty. What opportunities and challenges did you focus on first? With an economic downturn in which disposable income decreases, one of the first categories consumers will begin cutting down in is sports apparel.
Ok, so back to collaboration. We traditionally have had limited patent protection on much of the technology, materials and processes used in the manufacture of our products. Growing international sales The Rule 40 change still heavily restricted companies, but it allowed them to promote the Olympic athletes they sponsor more freely. That is my primary role as Chief Technology Officer of Under Armour. By increasing the number of specialty locations, Under Armour can offer their customers a wider selection of products, as well as offering them expert assistance in meeting their athletic apparel needs.
The fabrics used by our suppliers and manufacturers are made of raw materials including petroleum-based products and cotton. I spent 16 to 18 months focused on those projects. When the organization which holds a distinctive capability is able to benefit mainly from it then it becomes appropriable. ImitabilityIs it easy for other firms to imitate the resource? Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Andrew W. Both companies were acquired to expand the Under Armour Connected Fitness community. Come and help people live a healthier lifestyle. Fashion apparel has always been challenged by long supply chains that chase cheap production while having to make commitments to produce far ahead of retail demand signals.
Chandler has been Chief Human Resources Officer since January 2015. Please prepare a report to Mr. On a financial level, Under Armour needs to keep funding a strong research and development team to continue to develop breakthrough products. A key element of our marketing strategy has been to create a link in the consumer market between our products and professional and collegiate athletes. Prior thereto, he served as Vice President, Corporate Governance and Compliance from October 2007 to February 2013 and Deputy General Counsel from February 2006 to September 2007. As a result of our international manufacturing, we are subject to risks associated with doing business abroad, including: These risks could negatively affect the ability of our manufacturers to produce or deliver our products or procure materials, hamper our ability to sell products in international markets and increase our cost of doing business generally. All of us are on that spectrum.
The right candidate will bring more than 20 years of operating, financial and people leadership experience in consumer-centric, well-branded organizations. You can take that all the way to the pinnacle, which is being a professional athlete. Our product offerings consist of apparel, footwear and accessories for men, women and youth. Only four years since its founding Under Armour had become a globally recognized brand, and was still looking for areas. You should carefully consider the risk factors detailed below in conjunction with the other information contained in this Form 10-K. If factors indicate that is the case, or if goodwill is allocated to a reporting unit for the first time, we perform the two-step goodwill impairment test.
The firm has started offering footwear in the year 2006. Revenues and certain expenses in markets outside of the United States are recognized in local foreign currencies, and we are exposed to potential gains or losses from the translation of those amounts into U. Under Armour the company was built on the idea of speed in terms of its products and now its growth, and it has built a supply chain to match that velocity. Our Glen Burnie facilities include a total of 830 thousand square feet, with options to renew various portions of the facilities through September 2021. Intersegment revenue is generated by Connected Fitness which runs advertising campaigns for other segments. Loyalty Under Armour have their own market, they will not loss the any customer from this market, and this type benefit also. Our significant contractual obligations and commitments as of December 31, 2016 as well as significant agreements entered into during the period after December 31, 2016 through the date of this report are summarized in the following table: Includes the minimum payments for lease obligations.
It frequently uses free endorsements. Our products are sold worldwide and are worn by athletes at all levels, from youth to professional, on playing fields around the globe, as well as by consumers with active lifestyles. Given their emphasis of performance apparel, their pursuance of the high-end sector means larger profit margins to offset the high prices they must charge. That is why companies should not only be flexible, but also managers should develop a keen sense to anticipate change; therefore companies will be able to achieve to be at the forefront. We also generate net revenue from the sale of our products through our direct to consumer sales channel, which includes our brand and factory house stores and websites, from product licensing and from digital platform licensing and subscriptions and digital advertising through our Connected Fitness business. The Motley Fool has a.
This is evident in Exhibit. Fipps: I am fortunate to have had a variety of opportunities and challenges. Internal weaknesses were revealed that centered on post merger issues such as corporate culture issues, impending workforce retirements, and a lack of systems or process consolidation. As we continue to expand and drive innovation in our products, we expect to seek patent protection on products, features and concepts we believe to be strategic and important to our business. Plank has done a great job getting his company off the ground and into the top three performance apparel firms around the world, but if Under Armour wants to survive and continue to thrive, it needs to think beyond the norm and penetrate these new, emerging international sports markets. The steps taken by us to protect our proprietary rights may not be adequate to prevent infringement of our trademarks and proprietary rights by others, including imitation of our products and misappropriation of our brand.
Under Armour exercises a focused differentiation strategy by exclusively creating performance products. How does Under Armours competitive strength compare with that of Nike and The adidas Group? Nowadays are faster changes, new challenges threaten seriously survival of organizations, new foreign competitors, mobilization of capitals, difficulties in retaining human capital and changing technologies are elements that require managers to be prepared for change and have ability to motivate employees in order to have continuous renewal. Because most of our products are manufactured abroad, our products must be transported by third parties over large geographical distances and an increase in the price of oil can significantly increase costs. Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. We manage our inventory levels based on existing orders, anticipated sales and the rapid-delivery requirements of our customers. The terms of the Class C common stock are substantially identical to those of the Company's Class A common stock, except that the Class C common stock has no voting rights except in limited circumstances , will automatically convert into Class A common stock under certain circumstances and includes provisions intended to ensure equal treatment of Class C common stock and Class B common stock in certain corporate transactions, such as mergers, consolidations, statutory share exchanges, conversions or negotiated tender offers, and including consideration incidental to these transactions. In 2016 , approximately 52% of the fabric used in our apparel products came from five suppliers.
Where does your company stand on the collaboration excellence scale? These covenants may restrict our ability to engage in transactions that would otherwise be in our best interests. They are currently only in direct competition with Nike and Adidas. Internationally, our net revenues are generated from a mix of wholesale sales to retailers and distributors and sales through our direct to consumer sales channels, and license revenue from sales by our third party licensees. Strategic Formulation While Under Armour maintains a strong market share compared to their competitors, there is still room to expand into untapped markets. Although climbing, this number continues to fall short of the desired 3 to 4 percent growth. Prior to that, he served as Senior Vice President of Digital Revenue from April 2015 to September 2016 and Senior Vice President of Global E-Commerce from October 2013 to March 2015. The contractual term for stock options is generally ten years from the date of grant.