Under Armour Case Study Essay

1596 Words7 Pages
MBA 651 QL Final Exam

Case Presentation: Macys

1a. The significant factors that caused Macys to lose market share and decrease profits were the inability to keep up with competing online sales as well as the inability to appeal to the younger and male demographics. The case explains that Macys sales declined year over year causing multiple store closings, however, the case also explains that online sales have continually increased every year since 2009. Many department stores will continually lose this battle to online shopping because of the ease, swiftness and convenience of online shopping. Therefore, Macys is essentially competing with not online brick and mortar stores, but also online boutiques and websites and second hand websites, such as Mercari, Poshmark and Ebay. With this information, Macy’s should have taken the necessary steps to expand their online presence early to social media outlets and online
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The significant factors that caused Under Armour’s slow and declining sales growth as well as the company’s rising expenses were the inability to expand the market online and in traditional stores as well as the lack of marketing in not only the target demographics but also the struggling demographics that the company was trying to reach. In the case presentation, Under Armour was entering the market as an underdog under athletic powerhouses Nike and Adidas, so the company needed to not only create but sustain a viable marketing strategy that imposes on existing markets and captures new audiences consistently to continually increase sales. While a portion of this strategy was done during the company’s early years, recent numbers show a continuous decline in sales and market share to not only the industry powerhouses, but also to international companies as well. Under Armour has great and innovative products, but falls short in presenting those products to a broad and general audience, in area where competitors are most successful and
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