Columbia Sportswear Company

Columbia Sportswear Company

Columbia Sportswear Company is engaged in the invention, marketing, sourcing and distribution of sportswear, footwear, equipment and outerwear. The company was founded in Oregon, Portland in 1938. Columbia products are sold in more than 100 countries around the globe and the company has earned international reputation for quality, innovation, and performance. The Company’s products feature designs and innovative technology that protect outdoor enthusiasts from the elements, make outdoor activities more enjoyable and increase comfort among the products users. (Joy, 1990)  

The company is faced by some external environmental forces that play significant roles. This essay will discuss the factors and determining whether the factor is threat or an opportunity.

Social trends- Columbia Sportswear Company being leader innovator in active outdoor apparel, equipment, accessories. In 2012, the company announced that it will be entering into an agreement to form a joint venture with Swire Resources ltd designed to expand the market leading of the company’s brand and establish and grow the Mountain brand in china. Swire resources Ltd has been an exclusive distributor of Columbia products in china and Hong Kong. By signing the agreement, the company will be able to explore long term goals and growth in china. It’s an opportunity for the company co joining with Swire Resources Ltd which has already established Columbia Sportswear as an authentic outdoor brand in China. The company will be able to achieve a leading market position based on strong emotional connections with the consumers. (Shao, Krishnan, & Thomas McCormick, 2013)

Technology development

Columbia Sportswear co. places a great significance value on the products designs with overall appearance and image of their products that is integrated with technical features that distinguish the product s in the market place. Through the research and development efforts involve working closely with independent fabric component suppliers to develop products that are addressing the unique performance problem encountered by consumer’s outdoor activities. The company has innovated its products by including performance feature like water resistant or waterproof fabrics, body warmth retention, insulation from cold ambient air temperatures and the chilling effects of air, skin protection from the damaging effects of ultra violet rays emitted by the sun, breathability to minimize internal water vapor and moisture accumulation, light weight products, liquid and stain repellency. The technologically developed features put the company ahead of its competitors. This can be regarded as an opportunity to the company to be overhead in innovation and invention. (Shao et al., 2013)

Economic factors

Columbia sportswear being a dealer of consumer products, they are highly dependent on the consumer discretionary spending patterns and the purchasing patterns of their wholesale customers who attempt to match their seasonal purchase volumes to unpredictable consumer demand. The company has also diversified there base of retail stores which has resulted for extreme direct exposure to risks associated with unpredictable and volatile consumer spending patterns. The changing of seasons on consumer unprecedented consumption behaviours poses as threat to the company. The global economic conditions carry on to be unpredictable or economic uncertainty remains, tendencies in consumer flexible spending also become volatile and the subject to reductions due to uncertainty about the future credit constraints. In such situation the company faces the threat of consumer demand without being met due to the products not reaching the sale targets or the supply volume may decline when there is economic uncertainty in the key markets. The company is highly sensitive to the economic fluctuations in consumer demand may have confrontational effect to the company’s financial condition. (Löfgren, 2003)

Cultural elements

Culture is comprised of many elements that have been passed down from one generation to the other; they may include belief systems, knowledge, values, ideas and ways of ways of perceiving the world. Culture is able to impact Columbia sportswear on the decisions that they make concerning different products, there advertising strategies and how they interact with the customers. This can be a threat to the company, the company need to understand different cultural aspects to better serve their customers much better.

Regulatory elements

The company’s imports are subject to existing governmental tariff and non-tariff barriers to trade such as potential safeguard measures and import duties that may limit the quantity of various types of goods that may be imported to other countries, majorly U.S.A and China. These factors pose as threat to the company as they present trade barriers that represent material portion of cost of the merchandise. Similarly, the products are exposed to foreign product safety and domestic and environmental standards, laws and other regulations, which are complex and restrictive. The company attentively monitors these standards and restrictions because United States may impose new or adjusted quotas, safety requirements, duties, material restrictions, and other regulations. Constant monitor ensures that the company does not suffer from adverse effects on their results of operations and financial condition. (Easterwood & Seth, 1993)

Demographic shifts

In recent times there have been drastic demographic changes. Columbia sportswear being an international organization is facing labor threat that is arising from lessening workforce due to an aging population. This is evident due to the decline of skilled workers.

Primary competitive issues trends within Columbia Sportswear Company

Columbia is well diversified in terms of product categories it offers as well as geographically. The company has operations in Canada, USA, and China. The diversification allows Columbia sportswear to take advantage of the market opportunities while avoiding overexposure to one market, making them more competitive than any other company.

Columbia sportswear operates an impregnable distribution network through wholesale channels which include independently operated specialty sporting and outdoor goods store, international sporting goods chain, departmental stores which may be regional, national or international. The company also sells its products to independent distributors in various countries where it does not have direct operations. The company through its marketing strategy operates three websites, www.mountaingardwear.com, www.columbia.com, www.sorel.com. Through the impregnable network of distribution helps the company to reach out to a wider customer base providing it with competitive advantage.  (Hertenstein, Platt, & Veryzer, 2005)