Under Armour Case Study For Strategic Management

Under Armour Case Study

Companies nowadays may find it difficult to design and sustain a strategy that would assure long-term success in the global marketplace. Under Armour is no exception; they want to compete with industry behemoths Nike and Adidas for market share in the competitive sports apparel sector. Under Armour's strategy is examined in-depth, including the company's history, mission, influences, and capabilities, as well as recommendations based on a cast study by Arthur A. Thompson for achieving its long-term goals. Kevin Plank, a former football player at the University of Maryland, founded Under Armour in 1996. Kevin Plank recognized that today's athletes wanted performance wear that went beyond the standard cotton T-shirt, a shirt that kept them cool, dry, and light during extended workouts and games.

Kevin's goal was to create a T-shirt that had a tight, comfortable fit and swiftly transported perspiration and moisture away from the athlete's body, allowing the wearer's body temperature to be regulated. Mr. Plank founded an S corporation in Maryland called KP Sports after developing a prototype T-shirt with the newly available polyester-blend, moisture-wicking fabric. Under Armour is a sports performance gear company that is attempting to differentiate itself from the competition by expanding into other areas of the sporting goods business as discussed in this case study writing. Kevin Plank's difficulty is that his company's footwear sales account for only approximately 15% of total revenue, and international sales account for only around 6% of total revenue.

Under Armour must find a strategy to increase revenue on its footwear and reach the worldwide market in order to compete with the industry's top brands. Under Armour does not face a significant risk in these sales. It is possible for them to make changes when needed because of their strong brand recognition and loyal customer base Wholesalers are the second group of buyers. A wholesaler like Dick's Sporting Goods buys from Under Armour. As a result, the wholesaler has some negotiating power with Under Armour in this particular situation. About 68 per cent of the company's total revenue came from wholesale sales. 10% of that number came from Dick's Sporting Goods.

Under Armour SWOT Analysis

As a result, these wholesalers may decide to stop carrying Under Armour and instead stock products from competitors that they feel are more valuable. Suppliers' negotiating power Twenty-seven different manufacturers in 14 different countries produce Under Armour's products. South/Central America and the Middle East make up the next 20 per cent of manufacturing, respectively. Suppliers have little bargaining power because Under Armour has such a large manufacturing group. As a result, Under Armour should continue to generate revenue from its current manufacturers in the near future. Kevin Plank, a former collegiate football player at the University of Maryland, founded Armor in 1996. He despised the cotton t-shirts that the players wore under their jerseys when playing football. They were drenched in sweat and quite uncomfortable during practice.

Moisture Nicking fabric, on the other hand, was a brand-new technology made of synthetic polyester fibres with a water-resistant coating. It was created to wick moisture away from the body and accelerate the evaporation process. When the body temperature rises, this helps to control the temperature and keeps the shirt dry and lighter than conventional cotton shirts. Plank decided to leverage this technology to design tighter-fitting shirts that would keep athletes cooler and dryer. Under Armour's competitive edge stems from its technological and innovative capabilities. They are considered pioneers in the field of performance wear and have developed a strong brand in a short period of time. During a game, practise, or workout, their clothing is meant to keep athletes cool, dry, and light. Despite the fact that many ajar sportswear firms, including Nikkei, have replicated this technology, Under Armor maintains a competitive advantage due to their constantly developing product ranges. They also make shorts, underwear, outerwear, and gloves in addition to shirts. They now have Heat Gear for hot weather, Coolidge for cold weather, and All-Season Gear for weather that isn't too hot or cold. Because its brand is known for its vast product assortment, high quality, attractive styling, and cutting-edge innovation, Under Armor has a competitive advantage.

Under Armour Pestle Analysis

They have the advantage of being successful with higher suggested retail prices than their competitors because they are known for the quality of their gigs. They must stay the course in order to maintain their competitive advantage by constantly innovating and increasing their product line. Although Under Armor has had a lot of success in its early years, the company is facing a couple of major issues in the near future. They have a well-thought-out strategy to broaden their merchandise offers to encompass a number of sports. This method is perfect because it will allow them to reach a much larger audience. The difficulty will be to break into new markets for sports such as golf, baseball, basketball, and others where they haven't before competed. When they first appeared on the scene, football was their primary target market. Because football is mostly played by young males, this is a very specialised market.

Moving to provide possibilities for a variety of other sports, on the other hand, will allow them to secure their business. This Nil will face competition from Nikkei, their major competitor. Nikkei has already built a massive brand that is perhaps one of the most well-known in the athletic goods business. Another issue will be how to market to their new audience in a market that is already saturated. With competitors like Rebook, Aids, and New Balance making noise, Nikkei has a stranglehold on the footwear sector. However, marketing to professional athletes and developing a superior brand will be their key to overcoming this saturated market. It will be much easier to gain a larger following by presenting a higher-quality brand and making professional athletes their target market. Athletes usually wear whichever brand they want.

Kevin Plank, a former University of Maryland football player, introduced Under Armour (UA) to the globe in 1996. Plank was dissatisfied because he couldn't locate appropriate gear for athletes that would prevent sweat from becoming a problem. He relied on the advice of athletes who could demonstrate the quality of their gear during practice. His work yielded incredible results. The University of Alabama's current headquarters is in Baltimore, Maryland. UA is well-known, and its founder owns 25% of the company's stock, which has a market capitalization of about $3 billion.