A big way to do this is by moving overseas, which is why the company is building out its network of factory outlets. Doing so would play to the advantage of their specialty performance wear for hot and cold weather. The goal is to empower athletes everywhere. As people grow older they are less likely to exercise and care about their appearance. This means they tested the markets by using athletes to test their newer products to determine the needs of athletes — both professional and amateur — as well as youth athletes.
Their apparel is designed to keep athletes cool, dry and light during a game, practice, or workout. Strategic Typology Under Armour has a strategy that has positioned them to be one of the top five athletic wear and accessory companies in almost every category regarded. Although Under Armour faces many threats, there are still many opportunities for Under Armour to grow as shown by the external analysis. We Fools may not all hold the same opinions, but we all believe that makes us better investors. Companies require a large amount of capital in other to compete since the sport apparel industry need a large amount of resources on brand advertisement and endorsement. Industry Life Cycle Having been in the industry for 20 years, Under Armour has passed the introduction phase and is now in the growth phase.
Tom Brady, Stephen Curry, and Jordan Spieth are just a few such athletes. Based on your assessment and calculations, does Under Armour have a net competitive advantage or disadvantage in competing against Nike and The adidas Group? Summary of the Current Situation…………………………………………………. Additionally, since this industry is not usually called upon during campaigns, corporate taxes remain stable meaning unlikely to change and political pressures all bear a minimum on Under Armour in both the long and short term. Global Athletic Market Positive Growth Global athletic market has a promising future seeing from the past sales data and trend. This is particularly true in areas such as basketball and golf gear, where the company currently has only limited exposure. Takeaways This campaign effectively made a macho brand relevant to women. My recommendation includes increasing research and development, expanding their products into international markets, get patents on their products, focus on differentiation strategy, developing new product line to appeal to more consumers, shifting their strategy from a focused niche to more of a broad segment, and diversifying their product to carter for none athletes.
Accessed April 17, 2016 Horovitz, Bruce. This move is done to reach non-athlete customers in the market. Global athletic market positive growth 1. Cash Cow The cash cow in Under Armour is the apparel line. The company has an in house marketing team that have been doing a great job in designing and producing advertising and marketing campaign amid at promoting growth and increasing sales. This move certainly will bring Under Armour big opportunities to compete in this field.
Unfortunately, due to no patent protections, competitors such as Nike and Adidas began to replicate such products into their own brand. If the response of the customers toward that product is good, we can then start to make a special limited edition. Further research allowed Under Armour to create footwear, pants, hats, headbands, and other accessories in order to keep athletes cool, as well as special clothing that could keep athletes warm in colder climates. Under Armour has had a big challenge to create their own brand that would be in demand with the consumer while competing against already well… 1291 Words 6 Pages In order to beat its competitors, Under Armour Company can engage in market sensitive fresh product invention. The role of the value chain of Under Armour is in sync with its compelling user experience, background support and relevant distinction, downstream solution, familiarity and visibility of the company. Intensity of Rivalry Among Competitors — High Threat The threat from the old players in industry such as Nike and Adidas is high. Politically, Under Armour does not face many roadblocks.
The first time he started this business, he uses the connections that he had through playing sports. Seeing that a lot of technologies start to be wearable, technology companies can have a competitive advantage against the current players in this industry. The overall performance of the company in recent year shows a net revenue increase of 24. A second recommendation would be for Under Armour to use their overseas expansion to gain high profile endorsements for marketing purposes. Under Armour pay a lot of tax percentage compared to Nike and Adidas because majority of Under Armour sales are from the U.
Although Under Armour has a great infrastructure, there is still much more they could do to grow. He named the product 0037 or the Under Armour HeatGear® , keeping its wearer comfortable despite of the heat and sweat. Under Armour is growing at a magnificent growth rate seeing from the past revenue growth rates. Signing influential people as spokespersons for the company is proven to be effective throughout the year as we can see o Increasing Presence in International Market Under Armour has been trying to increase their presence in the international market by building more and more brand awareness in the markets outside of the U. If for some reason Kevin Plank were no longer leading the company he founded, investors would be wise to consider parking their investing dollars elsewhere. Under Armour has 160 million users who are using the apps regularly and it has more users than any of its competitors. In 2016 we will change the way athletes live.
Brand reputation can bring a lot of impact to the company ranging from profitability to sustainability. As shown in Figure 2 of the Appendix, a Porter Five Force Analysis makes it clear that the overall rivalry within the athletic apparel industry is medium to high. Thus far, most of the footwear gains have been in the running space. Sorry, but copying text is forbidden on this website! The company should move from the performance based apparels to a more diverse set of product segment which include athletic and sportswear. Accessed March 30, 2016 31.