Swot Analysis Of Under Armour

In the athletic apparel industry, as in any industry, it is key to stay in touch with the current trends in order to keep your products relevant. With Lululemon focused on such a niche activity it will be important that they explore other markets within the sports apparel industry in the future so as to stay relevant. We can see the company’s first steps in doing just this when they recently introduced their men’s apparel line. A summary of the athletic apparel industry’s external environment are listed in Exhibit 1.

Under Armour is a very famous sportswear company in the world. It sold products in three categories: apparel, footwear, and accessories. It had a wide variety of innerwear and outerwear in the apparel segment, a broad line of footwear, and a line of accessories for both men and women. Kevin A. Plank, the founder and Chief Executive Officer of Under Armour (UA), was a walk-on special team’s player for University of Maryland football team. As an athlete, he knew what kind of sportswear material would be popular for athletes. Under Armour created a new category of sports apparel: “performance apparel” which focused on the athlete’s performance. In this segment, it had a 78% market in 2009. Because, it paid more attentions on quality, performance

There is a high threat of substitutes in the athletic gear industry especially when competing with companies such as Nike and Adidas who have been around much longer, have the funds to continuously innovate their products and already hold a large market share. Under Armour has used “authenticity” as it’s guiding principle to grow the company and advertise their products, but if they wish to be the number one brand of athletic gear they will have to appeal to people who are also concerned with the look of the product and not just performance. According to research done by NPD Group, almost 80 percent of activewear is used for non-sports activities. “Under Armour will need to find a

Under Armour should exercise a focused, differentiated approach by exclusively developing performance apparel. Its non-standardized products are good for customers who prefer performance than price. For this reason, the corporation should have more emphasis on research and development to offer products, which are superior to what is in the market. On the other hand, its focus strategy should aim at particular sports, serving each sport’s needs more precisely than the broad apparel companies like Adidas and Nike. Combining a focus differentiation strategy will enable the firm to create a fertile niche positioning meanwhile meeting the customer’s specific needs (Kenyon,

The athletic footwear and apparel industry is extremely competitive but Under Armour has been able to establish a strong market share in the U.S. The industry is profitable and has a history of robust sales, profit growth, and solid credit metrics. The industry as a whole is believed to be more recession resistant than many consumer discretionary categories, because of lifestyle and the relatively low cost basis. The synthetic performance apparel market represents about a $3 billion market and presently, Under Armour is the leader with an estimated 60% of the market share. The activewear market as a whole is about a $58 billion market.

Under Armour has been successful in competing in the retail area because they were able to develop a strong relationship with the retailers that resulted in strong sales of their product. Also, brand image and recognition has also made Under Armour to compete successfully because of the quality of their products and selective distribution policies. For Under Armour gear line merchandising is a competitive advantage and in future, they expect to compete for consumer preferences an expect greater competition on the pricing side.

Under Armour Inc. is the fourth biggest manufacturer in the consumer apparel industry. Under Armour Inc. stock price has dropped nearly 30 percent in the past year. They represent more than 4.45 percent of the total market share. Despite the decline in stock price, Under Armour Inc. continues to grow. This fluctuation in stock price has caused us to take a deeper look at their financial statements. In doing so, we decided to do a financial ratio analysis. To have a better understanding of the industry and how Under Armour Inc. compares to the rest of the industry we will compare them to Columbia Sportwear Company.

When it comes time to innovate, even executives who deeply appreciate the discipline that modern management science has produced in finance, marketing, or logistics seem willing to tolerate all sorts of nonsense (Keeley, 2013). One of the innovation initiatives that I would implement to promote employee innovation within Under Armour is establishing larger market share in female market. Because the brand comes from start in football, it is perceived as a male-oriented brand. Even their Ad campaigns’ very aggressive tone. Holistically speaking, women account for 80% of buying decisions, which includes shopping for family members, as well as purchasing for own use. Women athletes are much more particular

The SWOT reveals UA as a desirable company worth investors’ time and money. The analysis also shows that, only through the continuous enhancements of its strength and the review of its weakness, opportunities and threat, will the company remain viable in the industry (“Under Armour SWOT,”2010).

Under Armour, Inc. is ranked among the established sports Kit producers across the globe. It thus enjoys massive sales in several markets. Under Armour has its headquarters Baltimore, Maryland with Kevin Plank as the current Chief Executive Officer (CEO) and Robin Thurston as the Chief Finance Office. The company is committed to developing its brand continuously through advertisement. It is presently listed on the New York Stock Exchange (NYSE) market with a share price of $46.99. The company through its CEO believes that for the company to remain viable in the market, it has to ensure that that its products satisfy the taste of the consumers (Thompson, 2015). Clearly, this has bored fruits, basing the argument on the high consumer turnover that the company enjoys. Moreover, the company has various opportunities to expand in the American markets. All the employees in the organization have to undergo a form of training on the operations of the company. The company is appreciated by several consumers across the globe as a result of the high-quality products it produces and the unique marketing strategies. It is founded on the slogan “protect this house.”

Even though footwear sales have improved for Under Armour, when looking at the Composition of Revenues for Under Armour in 2012-2015 (Exhibit 3, C-79) and comparing their composition to that of Nike and the Adidas Group, it’s evident that footwear sales are

Overall, Under Armour has shocked the business world with its success. Its marketing strategy is a lesson for small up and coming companies (and old companies too) that innovation, quality products and good marketing tools and tactics with a relentless pursuit of goals can reap tremendous

Under Armour, Inc. is the frontier for innovation of athletic performance products that enable consumers, men women and youth, to maximize their potential throughout the duration of a game, practice, or workout. The company was founded by Kevin A. Plank in 1996 and is headquartered in Baltimore, Maryland. Under Armour develops and sells products in three primary categories, “In 2015, sales of apparel, footwear and accessories represented 71%, 17% and 9% of net revenues, respectively” (Under, 1). The remaining 3% of net revenues is generated through licensing arrangements. Sales are primarily driven by wholesale channels, but Under Armour “also generate net revenue from the sale of our products through our direct to consumer sales channel…and

In 2002 Under Armour began testing its women's apparel line, hoping to duplicate its immense success with male

We, therefore, recommend that the company investment into the new growing trend of of “fashionable athletic wear” apparel, focusing primarily on their female customer base. This new female apparel line will hopefully boost future earnings by serving one of the fastest growing markets in the United States. In addition, it will hopefully attract more female customers, who still perceive the brand as being ‘male-centric’. Through thorough analysis, we believe that this the best course of action for the company because of several factors that contribute, but are not limited to this new trend such as the increase in health conscious, an increase in athletic wear apparel and the growing number of active gym members across the country.