Under Armour Case Analysis

Topics: Marketing, Strategic management, Brand Pages: 30 (6086 words) Published: June 11, 2014
Table of Contents
Executive summary
1.Introduction ………………………………………………………………………………………3 2.Summary of the Current Situation………………………………………………….……4 2.1Current financial Performance………………………………………………………….…5 3.External Analysis……………..…………………………………………………………………..7 3.1Driving Force for Change……………….……………………………………………………7 3.2Porters Five Forces Model……………………………………………………………………8 3.3Key Success Factors………………………………………………………………………….11 3.4Summary of External Analysis…………………………….…………………………………13 4.Internal Analysis………………………...…………………...……………………………...……13 4.1Resources and Competences………………………………………….………………………14 4.2Value Chain Analysis……………………….………………………………………………15 4.3Comparison of Strength to Rivals…………………………………………..……………….16 4.4Summary of Internal Analysis………………………………………………………………17 5.SWOT Analysis…………………………………………………………………………………17 6.Strategy Recommendations, Alternatives Analysis and Arguments……………………………19 7.Appendices………………………………………………………………………………………21 Appendix 1: Under Armour Revenue……………………………………………………………………21 Appendix 2: Under Armour Key ratios………………………………………………………………….21 Appendix 3: Value Chain…………………………………………………………………..……………22 Appendix 4: Major competitors market share………………………………….……………..………..23 Appendix 5: SWOT analysis……………………………………………………....................................23 8.Citations………………………………………..……………………………………………….24

Executive Summary
Under Armour is a company started by the former University of Maryland football player Kevin Plank. Although the company started in a basement, they have overcome many obstacles financially to have a continual growth in sales. The founder has been successful in developing new and innovative gears and apparels to help stay ahead of their competitors. Under Armour finds it extremely important to maintain relationships with their managers and more importantly with professional teams. The company has prided itself on maintaining a competitive advantage by always having top notch products and adopting new strategies and ideas to outcompete the rivals. The company strategy and initiatives clearly seems to be working since Under Armour is able to compete with Nike and Adidas. Under Armour mainly markets to people with active lifestyle, as a result the company made it a priority to be a major player in the life of people who play sports or enjoy being physically active globally. Some competitive advantages enjoyed by Under Armour are the amount of fitness product they offer. Also the ability to recognize the company is simple because their logos are easy to identify. With the strong brand loyalty and the cost advantage that the company has, it is evident that the company will expand in domestic as well as international market.

The company needs to expand their target market from national to international and develop clothes for people interested in a more casual look. The company should move from the performance based apparels to a more diverse set of product segment which include athletic and sportswear. The fact that Under Armour narrows its product to athletes makes the company to lose customers to their competitors who sell both athletic and casual wears. Introduction

Under Armour is a profitable and ‘well-known company whose strategy and initiative edge has giving it a greater recognition and attention. My analysis starts by looking at a summary of the current situation i.e. the strategic posture and the current financial performances. Secondly the analysis will summarize the external analysis of Under Armour by describing the attractiveness of the industry, threats and opportunities that are associated with the growth of the company. This section will focus on the driving forces for change, Porter’s Five Forces Model, and the key success factors. The third segment of my analysis will summarize the internal analysis of Under Armour. This section will focus on the company’s resources and competences, value chain analysis, and...

Citations: Appelbaum, R., and Gereffi, G., 1994. Power and Profit in the Apparel Commodity Chain in Edna
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Associated Press (2009, January 31). Under Armour Takes a Chance on the Shoe Market. CBS
http://www.cbsnews.com/stories/2009/01/31/business/main4766488.shtml IMC, WVU lesson 2: IMC Foundation and Key Principles
Burke, M. (2013, November 14). Under Armour, With First-Ever Acquisition, Enters The World Of
Software
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Cammett, M., 2006
Fool, Motley. (2011,Oct 31). Where Under Armour Is Finding Its Growth Retrieved from
http://www.dailyfinance.com/2011/10/31/where-under-armour-is-finding-its-growth/
Roberts, Daniel. (2011,Oct 26). Under Armour Gets Serious. Retrieved from
http://management.fortune.cnn.com/2011/10/26/under-armour-kevin-plank/
Industry Canada, 2008. A Canadian Approach to the Apparel Global Value Chain, [online] Available at
http://www.ic.gc.ca/eic/site026.nsf/eng/h_00102.html
Ronantonnoel. “Strategic Management in a Global Context: Under Armour”. May 31, 2012.
http://www.slideshare.net/Ronantonnoel/strategic-management-in-a-global-context-under-armour
Team, Travis. (2012,Nov 25). Breaking Down Under Armours $53 Fair Value. Retrieved from
http://www.forbes.com/sites/greatspeculations/2012/11/29/under-armour-has-growth-but-is -
Morningstar.com. Retrieved December 13, 2013, from http://financials.morningstar.com/
ratios/r.html?t=UA®ion=USA&culture=en-US
Under Armour(UA). (n.d.).www, Barchart.com. Retrieved December 13, 2013, from
http://www.barchart.com/profile.php?sym=UA&view=ratios
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