UnderArmour
CASE BRIEF ANALYSIS
Case: Under Armour—Challenging Nike in Sports Apparel
1. Identify the strengths of the organization.
(1) One of the company’s strength is that it has a strong brand. Since changing the company’s name in 2005, Under Armour has grown into a solid, well-known sports apparel brand. (2) Under Armour has a high net income and high profit to earnings ratio. The company’s rapid growth ensues. (3) Another strength will be that they have a positive response from customers. Under Armour are known as “after-sales” follow up and interaction, which has allowed for a strong brand loyalty throughout its customers. (4) Under Armour has a strong promotion strategy. They advertised in a variety of national digital, broadcast and print media outlets, advertising campaign and social sites. Under Armour also had sponsorship agreements with some famous individual sport stars. (5) One other main internal strength is the leadership of Under Armour’s owner and the team-driven management style. (6) The distribution channels the company uses are also strength to the company that is done through third party distributors and partnerships.
2. Identify the weaknesses of the organization.
(1) One of their major weaknesses is price competition. Under Armour having higher costs than competitors. They follows suit with no reduction in cost with other competitors and reduces sales. (2) Under Armour is considered as male-targeted brand. Even though they developed some different types of performance gear and ventured into women’s apparel and footwear, but they still target male market more than female market. There is still great opportunity for UA to grow by broadening their product line. (3) Another weakness for Under Armour is that they are too dependent on domestic market, because over 90 percent of sales were in North America. There is great opportunity for UA to penetrating new emerging worldwide sporting markets. (4) UA are not as global as Nike and do not compare to
Case: Under Armour—Challenging Nike in Sports Apparel
1. Identify the strengths of the organization.
(1) One of the company’s strength is that it has a strong brand. Since changing the company’s name in 2005, Under Armour has grown into a solid, well-known sports apparel brand. (2) Under Armour has a high net income and high profit to earnings ratio. The company’s rapid growth ensues. (3) Another strength will be that they have a positive response from customers. Under Armour are known as “after-sales” follow up and interaction, which has allowed for a strong brand loyalty throughout its customers. (4) Under Armour has a strong promotion strategy. They advertised in a variety of national digital, broadcast and print media outlets, advertising campaign and social sites. Under Armour also had sponsorship agreements with some famous individual sport stars. (5) One other main internal strength is the leadership of Under Armour’s owner and the team-driven management style. (6) The distribution channels the company uses are also strength to the company that is done through third party distributors and partnerships.
2. Identify the weaknesses of the organization.
(1) One of their major weaknesses is price competition. Under Armour having higher costs than competitors. They follows suit with no reduction in cost with other competitors and reduces sales. (2) Under Armour is considered as male-targeted brand. Even though they developed some different types of performance gear and ventured into women’s apparel and footwear, but they still target male market more than female market. There is still great opportunity for UA to grow by broadening their product line. (3) Another weakness for Under Armour is that they are too dependent on domestic market, because over 90 percent of sales were in North America. There is great opportunity for UA to penetrating new emerging worldwide sporting markets. (4) UA are not as global as Nike and do not compare to