Under Armour Essay

Threats-Tax increases placing additional financial burdens on under armour could be a threat. The financial burden of increasing interest rates could be a threat to under armour. Changes in the way consumers shop and spend and other changing consumer patterns could be a threat to under armour’s performance. The actions of a competitor could be a major threat against under armour for instance it they bring in new technology or increase their workforce to meet demand. Substitute products available on the market present a major threat to under armour. Hard competition from companies such as nike and adidas. Recession may impact the sale of company. Low price importers can fetch market share. Male dominated focus.

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.

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

Under Armour’s (UA) current CEO Kevin Kant founded the company in 1996, which has witnessed the company grow in recent years to become a key player in the sporting gear and apparel industry. UA focuses its products and marketing efforts towards the youth, men, and women. The amount of resources that are allocated to each group of customers differs in that initially, UA primary source of revenue was from men even if youth and women products were also produced and sold. The specificity of UA’s products and their sporting activities selectivity can be attributed to UA’s limited global market share in the sporting gear and apparel industry. The company’s mission statement is inspiring, but in order to gain competitive advantages against larger

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

The organization trades on the NYSE market and over the years, it has witnessed a substantial growth in the value of the stocks. In this case, the values of the stocks are at $46.99/share. As at April 2016, the organization witnessed a split in its share prices. In mid-April, the organization closed at 45% down from the previous close of 85.97% that had been recorded just the previous day. Based on the split stocks share, it is expected that Under Armour, Inc. is in the process of enjoying a tremendous growth from its per stock prices.

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.

Doing so is a huge opportunity to grow their brand and sales significantly. • Under Armour needs to continue to innovate in order to remain competitive with other companies like Nike, Adidas, and

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

U.S. customer could view Under Armour as using cheap labor in various countries. 2. Environmental – Today most everyone is concerned about the environment. Plank and the management team need to address the issue of making certain their products and materials are environmentally

1. We chose to study Under Armour because of their explosive growth over the last five years in a very competitive industry. From a marketing standpoint, it is quite apparent that the company is doing well and one could assume that because the firm appears to have had great success in aggressively expanding their market share, they are by extension creating value for investors. By studying the financial information, we aimed to confirm or deny whether Under Armour is indeed creating value.

Identifying influencing factors of a company’s macro-environment helps in the strategic development and management within a company. The macro-environment outlines an industry and the competitive environment as seen in figure 3.1, (Gamble, Peteraf, Thompson, 39). Within the macro-environment there are the political factors, economic conditions, sociocultural forces, technological factors, environment forces, and legal/regulatory factors. All of these factors blanket the habitat an industry and its competition thrive in. Inside the industry and competitive environment there are five factors that influence an individual company. The five factors are suppliers, rival firms, new entrants, buyers, and substitute products. The biggest impact on a company are these five factors. For example, Under Armour focuses on their industry and competitive environment to survive and grow. Their strategy to win over the market share from Nike and Adidas consists of expanding a stable and original brand within record time, taking an innovative approach to their product line-up and brand-name appeal where the market seemed to be barren, and lastly, the company enters in the foreign market early on to establish its brand and influence markets outside of the US.

Our team has reviewed and compiled an assortment of financial statements and documents pertaining to the firm’s progress and financial position in comparison to its direct competitor, Nike. Through our financial analysis, we have identified potential areas of strength and weakness for Under Armour and Nike, which we plan to address and call to the attention of Under Armour’s management team.

THREAT - LOW to MEDIUM: Interesting because Under Armour was a new organization not long ago entrants must differentiate somehow, powerful companies not willing to surrender market share and increasing apparel technology raises start-up costs.