Strengths And Weaknesses Of Under Armour

a. Under Armour’s approach towards innovation is very unique, they think and plan out their projects thoroughly in order to create a one of a kind product that could be appealing to their consumers. The company has been extremely progressive throughout the years in order to stay ahead of the other competitive companies in their targeted industry. By constantly updating and coming up with different product lines, such as compression shirts and cleats, Under Armour is able to compete with other top athletic wear company’s in their market. If

Under Armour’s business strategy towards market segmentation is broken down into three different basis; Age, Gender, Uses. The first major market segmentation is by age, different age groups demand different products and Under Armour has produced certain merchandise to appeal to each generation. The second is Gender, both male and female respectively make up roughly 50% of the market equally.To appeal to females UA produces apparel in brighter colo, as a fashion forward athletic wear. While for males they they cater toward masculine vibe of tight fitting and resistant to wear and tear. Lastly, UA segments by the range of uses for their products.

The also place a big emphasizes on the Under Armour logo and pushed for brand recognition. Under Armour became the official uniform sponsor for many colleges and sport teams. Under Armour’s strategy was to design and make varies styles of sports apparel with their moisture-wicking fabrics to satisfy the needs of athletes of all levels and all sports. Their growth strategy was to continue to expand on the products they offered their consumers. They wanted to create more products that encompassed several sports and activities. By doing this they would be targeting additional consumers with their new performance products. Part of the growth strategy was to expand sales in foreign countries, become a global competitor in sports apparel and strengthening the appeal of their products and brand

In the fourth quarter of 2013, Under Armour reports that 35% of net revenue growth to 683 million dollars compared with net revenue of 506 million dollars in 2012, driven by expanded fleece offerings and new ColdGear Infrared products (Under Armour, “2013 Under Armour Annual Report” 2014). The company kept its growth, as indicated in the fifteenth consecutive quarter that increased over-20% (Under Armour, “2013 Under Armour Annual Report” 2014). In the fourth quarter, Under Armour gained a great response from its customer over this quarter, which was presented the strength of Under Armour’s brand name with new products. In the future, the company plan to expand its markets in Asia, Europe, Australia, and Latin America, also expect to increase overall sale in global market from 6% in 2013 to 12% in 2016 (Under Armour, “2013 Under Armour Annual Report” 2014).

Under Armour's mission was '' to make all athletes better through passion, design and relentless pursuit of innovation''.

Under Armour has several large competitors; the largest being Nike, Adidas and Columbia Sportswear. These companies are similar in that they all stress product innovation, advertising and sponsorships. Adidas is broadly focused in all sporting categories but fails to stand out. Columbia is known almost solely by its winter gear, limiting its growth potential and creating strong seasonality trends. Nike strives to be the best in every segment while Under Armour’s goal is to be a leader in each process of its product development, concentrating on quality over quantity. An advantage for Under Armour is that it is focused more on improving its brand and unique products, licensing other items and accessories through independent manufacturers.

Under Armour has gone from having only dry fit shirts to all athletic wear, plus more. The situational analysis includes a SWOT & market analysis, objectives and issues of the company, their marketing communication strategy, and their positioning strategy. The situational analysis will show how Under Armour can grow even larger than they already have.

Under Armour is a growing company with many strengths, weaknesses and opportunities. Many of these qualities will be discussed throughout the paper, but a SWOT analysis is the perfect way to become familiar with the company and it’s economic attributes.

Under Armour is a leading athletic clothing line directed towards the overall athlete who is looking for the most comfort during extracurricular activities. The mission of the company is, "to provide the world with technically advanced products engineered with exclusive fabric construction, supreme moisture management, and proven innovation. In short, every Under Armour product is doing something for you; it's making you better."

10. Based on a cost of equity of 5.31%, Under Armour created value in 2013 because the ROE (17.4%) is greater than the cost of equity (5.31%).

Under Armour was founded by a Maryland football player by the name of Kevin Plank in 1996. His idea was to engineer apparel to keep athletes dry, cool and lightweight while performing any physical activity. Fifteen years later the company gained 1.8 billion in sales and created a brand image that almost compared to the Nike swoosh. Plank began his journey by selling compression shirts at sports camps while operating out of the trunk of his car. He later realized it was more productive to sell to equipment managers than individual players. As the company expanded he tailored to athletes in different sports and moved on to hot and cold weather gear. Today they’ve expanded globally and have evolved their product line to a variety of outerwear, shirts, shorts, gloves and many other offerings. This case analysis will include Under Armour’s internal and environmental environment, strategic direction, recommendations and an implementation plan.

Since the evolution of the company, Under Armour rapidly expands their business while some internal problems still exist. For example, unprotected intellectual property right issue and supplier relationship management. Also, the current business strategy was focusing on marketing, international expansion, product differentiation, and other expenses while they have weak financial management. These will certainly pose future problems to the company.

The rapid success of Under Armour is not a mistake. The company dominates the performance apparel category. According to Founder Kevin Plank, “The mission of Under Armour is to make technically advanced products that are engineered with superior fabric construction, to provide proven innovation available to the masses-aimed at making athletes perform better” (UnderArmour.com). Under Armour uses many marketing initiatives including athlete endorsement, product placement, and popular culture which illustrates the success of Under Armour.

Under Armour is currently one of the leading companies in the sports apparel industry whose mission is to “Make all athletes better through passion, science, and the relentless pursuit of innovation”.1 When Under Armour first broke into the sports apparel industry it was a disruptive pioneer that initially made the two giants, Nike and Adidas, a little weary. Under Armour revolutionized the sports apparel industry by creating apparel that used synthetic materials as an alternative to natural fibers, such as cotton, or other materials, such as polyester. This all-important switch to these materials resulted in a 2“shirt that provided compression and wicked perspiration off your skin rather than absorb it. A

Under Armour 's mission is to have all athletes better with passion, design and innovation.