Purchase Solution

Business Strategy for Under Armour

Not what you're looking for?

Ask Custom Question

Under Armour: Working to Stay on Top of Its Game

1. Create a SWOT analysis to understand Under Armour's strengths and weaknesses. Does Under Armour have a sustainable competitive advantage? If so, what is the source? What about Under Armour's evolution and current business strategy may pose problems going forward?

2. Conduct a Value Chain analysis to identify value-creating activities.

Purchase this Solution
Solution Summary

This solution presents a SWOT analysis to understand Under Armour's strengths and weaknesses. A Value Chain analysis using Porter's model was used to identify value-creating activities.

Solution Preview

SWOT ANALYSIS FOR UNDER ARMOUR
Under Armour: Working to Stay on Top of Its Game
Background
Under Armour is a sports clothing and accessories company. The company is a supplier of a wide range of sportswear and casual apparel; mainly focusing on hi-tech sportswear for professional athletes. It has now broadened its horizons and Under Armour began offering footwear in 2006, it continues to expand its offerings. In fall of 2010, Under Armour began offering its first line-up of basketball shoes.

SWOT Analysis
Strengths
These are the strengths of Under Armour: .
? The company's presence is felt on the Internet. Its website is www.underarmour.com.
? The company is financially strong. Its third-quarter earnings rose 25 percent on strength in the apparel business.
? It has gigantic distribution chain. Under Armour's global headquarters is located in Baltimore, Maryland. Its European headquarters is located in Amsterdam's Olympic Stadium; additional offices are located in Denver, Hong Kong, Toronto, and Guangzhou.
? Net Revenues Increased 22% to $328.6 Million in 2010.
? It has a physically powerful brand
? Offering wide range of casual apparel and sports wear
? High profit to earnings ratio. Under Armour said its revenue rose to $186.9 million from $127.7 million.
? Positive response from customers. Moreover, Under Armour said inventory more than doubled from the same quarter last year, attributing the build up to "planned investment in core inventory to position itself for anticipated consumer demand."

Weaknesses
These are the weaknesses of Under Armour:
? It is considered as male targeted brand
? Not reducing costs in the same way as their competitors' means Under Armour is outlaying more of their profits. Having higher costs than competitors is a major weakness.
? Not having an effective marketing strategy seriously hampers the success of Under Armour.
? Under Armour's limited product line is a major weakness. Its focus is only on casual apparel and sports wear
? Narrow focus

Opportunities
These are the weaknesses of Under Armour:
? Looking at export opportunities is a way for under Armour to raise profits.
? The changes in the way consumers spend and what they buy provides a big opportunity for under Armour to explore.
? New market opportunities could be a way to push under Armour forward.
? Expanding the product/service lines by ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

View More Free Quizzes
Related BrainMass Solutions

  • Financial Analysis of Under Armour

    Corporate level strategies Under Armour has grown rapidly and as part of corporate strategy the company intends to expand into the global market. For this the company has chosen acquisition strategy and partnership with college or pro teams.

  • Under Armour Cost of Equity- CAPM, DDM, APT

    DDM may be answer for Under Armour at some point in the future, but currently, without knowledge of its longer-term reinvestment strategy, there is no way to estimate when a dividend may be appropriate, much less what the payout ratio might be.

  • Under Armour Ratio Analysis

    It may suggest that Under Armour Inc. is progressively becoming more dependent on debt to grow their business. Quick Ratio Quick ratio is lowest in 2015 when compared with last three years.

  • Time Value of Money

    One should be one that you would pay less for a $2,000 bond than you would from Under Armour, Inc and another one that you would pay more for a $2,000 bond from Under Armour, Inc. Would pay more or less for their bonds.

  • Cost of Equity for Under Armour

    The Cost of Equity for Under Armour Estimate the cost of equity or the rate of return Under Armour shareholders ââ?¬Å"require.ââ?¬Â?

  • Roles and responsibilities, effect of globalization

    Under Armour operates on a pay-per-item / service model. Customers often feel that they pay a higher price for Under Armour because they know they are getting a good product.

  • Research on Diversity intrusion in the Sports Apparel Companies

    The important resource that will be best considered in this argument for Under Armour's need for an office of diversity and Inclusion is mainly Davidson's (1999) work which will help align diversity dimensions to the Under Armours' business goals.

  • Under Armour

    427266 Under Armour Please see the attached document for the question. ***Please See Attached***

  • Calculation of profit at diiferent stages of production

    The hamburger cojuld be made into frozen Salisbury steake patties sold under the Armour label. The only additional cost would be a $200 processing cost for the 500 pounds of hamurger. Frozen Salisbury steaks sell wholesale for $1.70 per pound.

View More Related Solutions