This document provides a strategic analysis of Columbia Sportswear. It begins with Columbia's strategic mission and external/internal environments. It then analyzes Columbia's business strategies, including competitive rivalry, acquisitions, and international expansion. Recommendations include balancing innovation with marketing, choosing trade channels carefully, acquiring upmarket brands, orienting products to audiences, and preparing for shifts in global supply markets. The document concludes with Columbia's financial performance and projections for continued growth in China and higher market value.

1. Strategic Analysis Term ProjectLindsay Bleifuss, Matthew Cox, Amy McKanna, Ken Moriyasu, Marc Rose, Steve SperleyPortland State University: Management 562

2. Strategic Mission and Intent Sustainable, profitable growth Innovative products Elevate consumer’s perceived value Drive brand awareness Compelling retail environments Emotional consumer linkage Social responsibility

3. External Environment General Environment Industry Environment Competitor Environment

4. General Environment Demographics Aging Population Economics The economy grew 7.1% in 4th Quarter 2010 Rising oil prices slow growth Technology Mobile retailing Diffusion of information Global Forces Increasing dependence on global suppliers

5. Industry Environment Threat of New Entrants Few barriers to entry Switching costs are low Bargaining Power of Suppliers Possibility of forward integration Threat of Substitute Products Icebreaker Intensity of Rivalry Among Competitors Slow growth, intense rivalry.

6. Competitor Environment Current Strategy and Future Objectives E-commerce, Youth Sales, International Growth Strengths Strong brand recognition (North Face, Nike) Resources Weaknesses Low barriers to entry Niche market

7. Columbia’s Internal Environment Interviewed: Liz Dudley, Senior Merchandise Planner, Bill Fereira, Senior Product Line Manager for Hunting and Fishing,Head Business Analyst of Conception, Design and Production, Kyle Newton, and Senior Business Strategy Project Manager, Beverly Briggs Core competencies Resources Capabilities Business level strategy Competitive rivalry Acquisition

8. Strategy Formulation Business Level Strategy Competitive Rivalry and Dynamics Acquisition and Restructuring Strategies International Strategy

9. Business Level Strategy Get away from price competition Move up-market Focus on R&D Differentiate

10. Competitive Rivalry and Dynamics North Face Design Gore Tex Premium Targeted audience orientation Aspirational Marketing

11. Acquisition and Restructuring Strategies Acquisitions Move up-market Mountain Hardwear Montrail Increase market power Sorel Acquire new technology OutDry Restructuring Several downsizings

12. International Strategy International Sales/Marketing Channels Own brand stores, wholesale, and e-commerce China Latin America Canada Europe Counterfeits abound Contract manufacturers in Asia Comparative advantage shifting

13. Columbia Sportswear Strategy Implementation Corporate Governance – Boyle Family Control: 21.4 million shares valued at $1.2B Gertrude Boyle (Chairman of BOD), Timothy Boyle (Son, President & CEO), Sarah Bany (Daughter, seat on BOD) Executive Team Compensation: Base salary, equity, performance based bonus Organizational Structure – Cooperative form Multidivisional Structure Related Constrained Strategy Differentiation and Innovation Key Centralized, top-down, decision making but with added flexibility

14. Columbia Sportswear Strategy Implementation Strategic Leadership – Strategic vision and mission unpublished Innovation, innovation, innovation Vertical organizational management structure Heterogeneous management team Succession planning ???? Strategic Entrepreneurship – Cross-functional development Induced strategic behavior Top-down, core competencies, internal innovation, cooperation.

15. Strategic Competitiveness

16. Strategy Formula Recommendations Balance innovation with aspirational marketing Choose trade channels carefully Keep acquiring up-market Orient products around specific audience Look out for shifts in international labor/supply market

17. Columbia Sportswear Strategy ImplementationRecommendations Create a defined vision and mission Cooperation and individual entrepreneurialism are key to innovation – induced strategic behavior Succession planning is increasingly important Seek opportunities to hire senior managers from competitors such as North Face and Nike. Over time, diversify the Board of Directors

18. Expected Impacts Recommendations Continue growth in Chinese market with higher-end, trendy product line

19. Columbia Financials Summary

20. Financial Performance Comparison - 2010

21. 2011 Projection: Share price - $72 (currently $65.57) Market Capitalization (Market Value Added) - $2.43 billion % increase in MVA over 2010 – 19.4% Marginal improvements in ROA and ROE

22. THANK YOU!