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Under Armour Strengths

1426 Words6 Pages

The Under Armour case analysis includes the five forces analysis, core competencies of company, swot analysis, generic competitive strategies, impressive performance in period of 2006-11 and recommendations for the company.
Current performance of the company shows that there is a net revenue increase was of 24.6 percent from 2011 to 2012 ("Under Armour, Inc. - Earnings", 2016). The financial statement shows that in last ten years Under Armour has achieved an average growth rate of 25.
Five forces analysis
This reveals that Under Armour has the tough rivalry with Adidas and Nike. Nike has 7 percent of the total market share and Adidas has 5.4 percent of the total market share while Under Armour has only 2.8 percent of market share (Thompson, …show more content…

Leadership and motivational skills of Kevin Plank and the entrepreneurial characteristics are strengths of Under Armour. Technology innovation and advanced products are strength for the company. Under Armour continually pursues multiple sponsorships to include many celebrity endorsements. Additionally, Under Armour has a well-developed base of customers. Product development is created based on customers’ wants and needs. By developing products to address the wants and needs of customers further increases the retention of customers to purchase Under Armour’s products.
Weaknesses
Under Armour is heavily dependent upon the male market. The predominant customers base is also only located in the United States. The pricing of Under Armour is at a premium and it is not company oriented. The sales are seasonal. Additionally, Under Armour may be perceived as carrying the male targeted brand. A big weakness is that company has yet to patent the material used in the manufacturing process of their products. Additionally, Under Armour does not have a plethora of supply networks and with this may hamper the required materials to produce Under Armour products. It also offers high margins to the retailers. All these have contributed to weaknesses of Under …show more content…

It can expand the product range and can enter in to the sports equipment’s sector. By offering lower prices Under Armour may increase their sales in other markets. Furthermore, Under Armour has opportunities to create alliances with the fabric manufacturers. It also has an opportunity to expand its retail outlets and can enter in to the women’s sports. By doing so Under Armour, may be able to further increase their products use by customers and further increase their products availability among the international market share (Russell,

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