ipl-logo

Business Strategy Case Study: Under Armour

795 Words4 Pages
bulb-icon

Recommended: Under armour case study

Under Armour faces a twofold challenge, in the product and market area. Their heritage product category was compression Heat-Gear, and Nike the major competitor, was planning to take control of the new customers generations by creating a whole new line called Nike’s Pro Combat. Besides that, the marketing side was also having struggles. Since Nike created a strategy in which a strong emotional connection with customers was developed. This would have as repercussion the displacement of the Under Armour brand and therefore the slow decline of the company. CHOICE 1: Approach the decision as a product problem. PROS: • The immediate development of a new collection could capture the budget from retailers. In this way, the firm would gain more …show more content…

Furthermore, such approach will also allow the investment in new business categories. • Moreover, another possible advantage could be that an overhaul of the current product in stores could create a new energy for the brand and encourage shoppers to take a closer look. This way buyers will become familiar with the brand and possibly form a close relationship. CONS: • Indeed, a disadvantage of maintaining the same course is that the problem could arise a few months later. In other words, the competition would continue to gain customers over time while Under Armour would be out of the market. • Another disadvantage is that perhaps a marketing campaign could put Baselayer in the frame. However, this could be the case that it only provides a temporary success in sales. CHOICE 3: Start over with a new business plan. PROS: • Rebuilding the Baselayer product will allow Under Armour to analyze in detail the selection of fabrics, the design, pricing, and the position of the customer. This would allow the company to develop a higher quality product and capable of competing with the best products on the …show more content…

This means that different direction from when the company was founded would have to take place. Such actions symbolize changes in the product plan, in addition to maybe discrediting years of the work of the CEO or COO. MY CHOICE: Option 3 RATIONALE: I consider that option three is the best option to choose among the three past options. Star over a new business plan could allow this company the opportunity to design a product that can compete with the brands that conduct the current market. POTENTIAL OPTION: A potential option would be to reinvent the product entirely. An option could be to create equipment that did not require a Baselayer. Instead of using a Baselayer the new equipment would already have the main features of the previous product. DIFFERENTIATION: these two options differ since the third option seeks the improvement of the current product. In this option, it appears that Under Armor seeks to follow the pattern that NIKE adopted. On the other hand, in the potential option the company would seek to be a step forward in trends, in order to ensure that the brand becomes once again the favorite of the public. RATIONALE: I think it is a good idea given that it would be looking for a new market where there would be no immediate

Show More
Related
1376 Words | 6 Pages

So, we can conclude that Mdelic Wasatch Outerwear appears to have a good strategy and is focusing on new growth opportunities. Some concerns may be the limited financial resources to pursue their strategy. The continued investment in new products and execution in key focus areas is intended to help strengthen competitive position as they enter and expand into new market segments. The market segments change rapidly and Mdelic Wasatch Outerwear need to adapt to this environment. However, changes in product demand may harm Mdelic Wasatch Outerwear’s financial results and they are hard to

Read More
932 Words | 4 Pages

A huge sum has been invested, so now it is really crucial for the product to succeed. Moreover the current product mix is not sufficient to bring long term profits for the company. As far as short term goals are considered, management wanted a successful launch for the product which will provide the right marketing and target of the new product line. While the long term goals involved adding variety and diversity to the product line to achieve a long term sustainable growth rather than just achieving short term

Read More
317 Words | 2 Pages

The sporting goods industry has a long history from the mid- 1800s until the early 1980s. Since then public ownership led to the expansion of footwear and apparel products in an exploding marketplace. This allowed the top 20 firms to have sales of at least $1 billion. (Lipsey, 2006) After 1980s, sports equipment manufacturing is estimated above a $70 billion industry and is continuously growing worldwide (statista.com, 2014). The production of sports equipment is one of the biggest and most profitable industries nowadays and it gathers all the attention of big brands with powerful marketing techniques which compete in global scale.

Read More
1450 Words | 6 Pages

And achieve as a result, the growth for its brand, market share, and sales

Read More
274 Words | 2 Pages

As in 2014, Lululemon’s business strategy had seven key elements: Firstly, Lululemon needs to broaden the product line beyond yoga, running and general fitness, and offer product for both male and female of many ages. Nowadays, more people start to concern on their health, not only elder people. They need to have good-looking and convenient outfit for exercise and training. Second element is to grow the store in North America and United State. These locations are very potential for any company because netizen in these locations have high income which can afford to such products like Lululemon.

Read More
620 Words | 3 Pages

The road to becoming a legitimate competitor has been tough, specifically because of the competitive nature that exists between firms in the same market. The market structure, determinants of supply and demand, and future outlook of the company can help us see the state and performance of Under Armour. Under Armour’s is an example of a monopolistic competition, meaning they have aspects of a perfect competition market structure, but their products are not the same as its competitors. As mentioned above, Under Armour’s main competition is both Nike and Adidas. Recently, Adidas has

Read More
1207 Words | 5 Pages

I would change my key operational systems according to customer needs. The designer will need to makes changes according to the current market. The operational department will need to make changes to the packaging. We cannot keep using the same basic packaging to impress current market. Packaging needs to be bright, eye catching as the current consumers are more likely to buy something based on the presentation of the product.

Read More
1808 Words | 8 Pages

But product differentiation requires a lot more efforts in research and development as

Read More
1158 Words | 5 Pages

2.0 Competitor Analysis The industry that Under Armour is involved with is extremely competitive, with competing against big names such as Nike or Adidas. Although it’s hard at the beginning, but customers want to have the highest quality apparel therefore they turn to Under Armour. Under Armour stays in the competition by having high quality products, and also by signing endorsements deals with major athletes (Owusu, 2017). By having major athletes represent Under Armour, means the company will be bringing in "big money" because they will bring up the brand’s popularity. The major competitors in this industry are of course inclusive of big names such as Adidas, Nike, Dick’s Sporting Goods and Puma.

Read More
3388 Words | 14 Pages

Before entering an unknown product horizon, the company will investigate its viability in the product category as well as measure its competitive advantage to other companies in the niche. Under Armour’s unique ability to measure these two important factors has allowed it to create a product base which consumers have high loyalty towards. The Under Armour brand has positioned itself in the high quality, high price, and best available in the market, category. It advertises itself as delivering higher customer value and is therefore capable of charging higher prices for their goods.

Read More
789 Words | 4 Pages

Simply put, Nike’s target market is mainly customers who have more concern for the quality and utility of the product than they have for the price at which the product is being sold. This helps to ensure that pricing never has to be adjusted downwards in attempts to woo in a larger number of customers. For any company to achieve success from the marketing strategies that it has put in place, it has to ensure that its strategy is flexible enough to keep up with the changing times and to also accommodate a large variety of customers. So as to do this, it is imperative that the products being produced by the company be innovative enough to exceed what is being provided by competitors in every possible way. Nike chose to take this into deep consideration and this resulted in it making a few changes on its marketing strategy.

Read More
1301 Words | 6 Pages

Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. A few have already started to transpire, though others are purely likelihoods. External factors affecting this mix is one of the most common, technology. Before Nike releases its brand new product line to the market, it’s always prepared to authorize that whether or not there has been any sort of major advances from the other competitors that would tracker its launch. Thus they must time this carefully, as other competition may demand to shadow its release with their marketing

Read More
1424 Words | 6 Pages

NIKE The Factors that Led to Success and Failure of Nike in its Venture across International Markets Abishek TR* Abstract- Key words: INTRODUCTION The largest American suppliers of athletic shoes, apparel, and sports equipments .At the same point of time ,this company is known worldwide .The Success of this company is the result of the various strategies used in the international market expansion which helped them to enter into new markets and to strengthen its position in the traditional ones .

Read More
2130 Words | 9 Pages

The strength of high price product strategy is that Nike can earn more on each single item. Also, it can ensure the quality of the products. The low-priced products policy could widen the customer group and attract more buyers to boost the sales. The weakness of selling premium is that only high-end buyers could afford to buy it.

Read More
1030 Words | 5 Pages

Product design can fulfil the demands of the customers and they are willing visit the same company again in the future. Referencing to the words of Vonderembse (n.d.),

Read More

More about Business Strategy Case Study: Under Armour

Related Topics

Open Document