Preview

Under Armour Corporate Level Strategy

Good Essays
Open Document
Open Document
1549 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Under Armour Corporate Level Strategy
Acquisitions, which are partnerships with college and professional sport teams since they buy the rights to sponsor those teams, will be UA’s most vital corporate level strategy. The drawback to this is that UA’s distribution through retailers increases the prices of products (Burke, 2012). One way to remedy this is to open more outlets with more affordable products. We have to remember that Under Armour is a North American brand and the greatest percentage of these team rights that they own are North American-based teams. Though it would be great to expand into global markets in Europe and Asia, and keep signing rising star athletes, they must first protect their house. In fact, that has been the main slogan used by UA often, “protect this …show more content…
Unfortunately for Under Armour, it will remain a difficult hurdle because they are competing with two industry giants, Nike and Adidas. These companies are well established and have a long-standing history that allows them to capture a larger market share over UA. They are able to attain this through growth of their brand equity over time, efficient supply chains, and their ability to create value for stakeholders on a consistent basis. Over a four years period from 2011 to 2014, Under Armour has achieved a consistent increase in annual sales revenue from $1.47 billion in 2011 to $3.08 billion in 2014. Though this shows success and growth, it is substantially smaller compared to Nike, the industry leader with a $20.10 billion in 2011 to a $27.8 billion in 2014. Attempting to obtain a larger market share is an ambitious gesture however; UA must look at growth as a way of protecting themselves against companies like Nike and Adidas, as they pose a risk of pushing out smaller companies using their advantage over the market. Growth does not happen overnight, it is achieved with time and consistency. Some ways that UA can capitalize on achieving growth are: sports marketing, more efficient and effective supply chains, improved distribution networks, and creating more technologically advanced products through research and development (Daigle, Bowen, Dion, & Valentine,

You May Also Find These Documents Helpful

  • Better Essays

    Even though it is one of the most competitive athletic wear brands in the Unites States, there are a few issues that prevent Under Armour from surpassing its competitors. Under Armour is not as geographically diverse as Adidas and Nike, which inhibits the company from a great amount of potential profit. Although competitors are currently more widespread than Under Armour is, Under Armour…

    • 806 Words
    • 4 Pages
    Better Essays
  • Good Essays

    We also began recruiting athletes like Olympian Michael Phelps, Quarterback Tom Brady, MMA stars Brandon Jennings and George St-Pierre. Under Armor expanded to the international stage by making our headquarters in Amsterdam and a Branded retail store in Annapolis, MD. They also moved higher in their ranking among football fields by sponsoring the Auburn Tigers who won their BCS Championship game. While in 2010 those wonderful things happened we reached incredible heights in our financial sector by recording surpassing a massive $1 billion dollars in revenue; which in analyzing is quadrupled from…

    • 930 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Under Amour’s strength is innovative and unique technology of their products. “For example, in 2013, the company released a shirt that tracks athlete’s heart. Sensors in the brand’s shirt are able to pick up electrical signals from the heart. Additionally, Under Armour developed the tape replacing clear that gives ultimate support, and pivot freedom for athletes.” (Horovitz 2012) These Innovations give Under Armour a competitive edge against other sporting retail brands. As the company continues to keep up with society’s technology advances, it can remain a hot topic in its industry in the eyes of many consumers. Also with the invention of the compression undershirt, Under Armour was founded on innovation within the athletic industry. From the company’s humble beginning to now, Under Armour has kept a continuous focus on meeting the changing needs of athletic industry with new, innovation technology. The company has a natural fast-dying cotton.(Jackson and Day P12-18)…

    • 296 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Case Study Under Armour

    • 877 Words
    • 4 Pages

    In order to do this they had to branch out to the foreign markets. They would need to be able to advertise their product and the material used to make their product in the sports apparel industry throughout the world. One of the alternatives that could probably help UA is to merge with a global shoe market so that their product will be available in all the states as well as the international markets. Some key markets to target would be UK and France. Knowing that the Olympics try to visit a different country that would be a great thing for tourist to shop and spread the word about their products and services. The threats that they are facing is high competition from brand names like Nike and Adidas, Endorsement from celebrities are poor, and to get a celebrity whose name is golden like Kevin Durant to endorse their product instead of someone who has been seen in the public eye negatively like Ray Rice. Negative endorsers will likely make consumers not want to support your product because they may feel you value that persons way of…

    • 877 Words
    • 4 Pages
    Good Essays
  • Good Essays

    When it comes to athletic apparel, the first company people think of is either Nike or Adidas. Why? Both Nike and Adidas have done an impressive job in marketing their products, with popular spokesperson like Kobe Bryant or Derrick Rose. Nike’s success is attributed to its products contributing to the success of the athletes who purchase them. Nike and Adidas seemed as though they had control on the athletic apparel oligopoly, but recently, Under Armour has become a serious competitor to the two companies. The road to becoming a legitimate competitor has been tough, specifically because of the competitive nature existing 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.…

    • 1030 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Nike Swot Analysis Essay

    • 482 Words
    • 2 Pages

    There are several significant athletic and leisure footwear companies and sports equipment firms that produce similar products. Some of the primary ones are Puma and Adidas are some of the big competitors with Nike. Other large companies have diversified their product lines to include athletic and leisure apparel including Under Armour and lululemon. This type of quick change in technology and customer preferences can result in a risk for Nike. Demand for Nike’s products relies on what the norm in many sports and fitness related activites are, as well as the ever-changing trends, these generally control the financial results of Nike. If competitors have more success attracting customers with more appealing footwear or apparel, this would also hurt business…

    • 482 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Nike was incorporated in 1968 and has become arguably synonymous with elite footwear/apparel amongst the world population (Nike 10K, 2009). Nike’s primary business “is the design and development and worldwide marketing of high quality footwear and apparel” (2009, pg.1). In addition, Nike also designs/markets sports equipment and accessory products. Nike puts a heavy emphasis on investing in the innovation and design of their products to give their customers a high-quality product. Nike is the largest seller of athletic footwear and apparel in the world (2009). Nike sets the bar for other companies in the sports apparel/footwear industry, like Under Armour.…

    • 5144 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    Nike Ethics Case Study

    • 735 Words
    • 3 Pages

    The competitor gaining the most ground is Under Armour, though “Nike continues to have a more attractive valuation than Under Armour (Keulen, 2014).” Similar to Nike, the Under Armour Company is aggressively pursuing profitable sponsorship deals, giving them a rising portion of market revenue. Nike makes more than 10 times the revenue of Under Armour, but the brand frequently find themselves squabbling over endorsement deals and sponsorship (Goodkind, 2014). “Under Armour has also grabbed Adidas’ spot as the second-largest sporting brand in the United States with Nike being ranked number one (Goodkind, 2014).” But despite this new rank and a predicted revenue growth of 20% each of the next five years, Under Armour finds its total annual revenue to be the equivalent of Nike’s advertising budget (Goodkind,…

    • 735 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Although it appears that Nike has some inventory management problems, they are clearly growing their net income year over year. From the company perspective, they are effectively leveraging their assets to yield favorable increases in profit year over year, but from the stockholder’s perspective, they are effective leveraging their equity. This shows that although competition increases in the market, Nike’s brand remains relevant and desired within its primary markets. Nike can leverage their brand recognition, liquid capital, and their room for additional risk to focus on their e-commerce platforms, emerging markets, and women’s product…

    • 753 Words
    • 4 Pages
    Good Essays
  • Good Essays

    This supports my evidence that Nike and Under Armour are both very good brands. They have many similarities and differences. My opinion about the two is that I think that Nike is…

    • 516 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Under Armour History

    • 522 Words
    • 3 Pages

    Today the company generated over $3.96 billion in 2015 and is poised to overtake that amount in 2016. The company is projected to reach over $5 billion in revenue this year. The shoe industry is up over 60% this year thus far largely in part of Steph Curry shoe sales. Under Armour is investing in many more athletes such as Tom Brady, Steph Curry, Brice Harper, and also Dwayne “The Rock” Johnson. Lindsey Vonn is the major female athlete, but Under Armour is definitely trying to grow its women’s market.…

    • 522 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Under Armour have their own market, they will not loss the any customer from this market, and this type benefit also became their strength, can let the Under Armour became the first sport equipment in US.…

    • 1844 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    The barriers to entry for an athletic apparel company are very high, it takes a lot of financial and human capital to manufacture them with quality and affordability. UA tends to be a significant new entrant being successful in every industry…

    • 515 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Prepare to hire a young generation will help Under Armour save a lot of money and time in the future. According to Gayeski (2015), the most talented young people in high school and college today may not be interested in traditional jobs and it's going to take innovative communication and collaboration strategies to recruit and retain them. Therefore, the company needs to understand how to drive this generation to work efficiency for the company. Traditional jobs in youth’s perspective when there is no separation between “work” and “personal life” because in the past, everyone worked in the family or community of farming business so they were constantly contacted with their friends and everyone knew each other’s skills or unique contributes.…

    • 499 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    marketing expansion grid

    • 1428 Words
    • 6 Pages

    Third is product development, involve in offering modified or new products to current markets. For example, Under Armour transformed itself from niche specific sport to a mainstream brand by offering a new line of cross trainer shoes to the market. Recently, Under Armour introduced high performance running shoes to the market. Although this puts them into direct competition with other huge sports brand such as Nike and Adidas, it also offers promise for big growth.…

    • 1428 Words
    • 6 Pages
    Powerful Essays