Under Armour

Table of Contents

Executive summary

1. Introduction ………………………………………………………………………………………3

2. Summary of the Current Situation………………………………………………….……4

2.1 Current financial Performance………………………………………………………….…5

3. External Analysis……………..…………………………………………………………………..7

3.1 Driving Force for Change……………….……………………………………………………7

3.2 Porters Five Forces Model……………………………………………………………………8

3.3 Key Success Factors………………………………………………………………………….11

3.4 Summary of External Analysis…………………………….…………………………………13

4. Internal Analysis………………………...…………………...……………………………...……13

4.1 Resources and Competences………………………………………….………………………14

4.2 Value Chain Analysis……………………….………………………………………………15

4.3 Comparison of Strength to Rivals…………………………………………..……………….16

4.4 Summary 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 a comparison of strengths to rivals. The fourth segment of my analysis will summarize the SWOT analysis of Under Armour. Hear, my analysis is to compare the external and internal factors that have helped the industry archived its objectives. Based on my comparison of the internal and external factors affecting the company, I will conclude my report by providing recommendations that when properly executed will provide a significant and continued competitive edge to compete in the 21st century.

Summary of the Current Situation

This section provides a summary of the current situation, current financial performances and posture. It provides a clear inside on Under Armour’s aggressive push that

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