Tag:

Under Armour

Under Armour SWOT
BusinessManagementMarketingSWOT & PESTLE 

SWOT Analysis of Under Armour

by Shamsul

SWOT Analysis of Under Armour

 
In sports apparel, Under Armour is an excellent brand with various offerings. Kevin Plank founded it in 1996. It is an American brand that also offers casual wear and accessories. It has several outlets globally, including the Middle East, Europe, North America, Africa, and Asia. In this post, we will review the SWOT Analysis of Under Armour to benefit ourselves.
 
The current CEO of Under Armour is Patrik Frisk. It is an unbeatable name in sportswear. Their product portfolio is really innovative. They manufacture products according to the weather demand. Currently, they have more than 16400 employees.
 
 
Company Name: Under Armour
 
Founders: Kevin Plank
 
Founded: Sep 25, 1996
 
Headquarters: Baltimore, Maryland, United States
 
Parent Company: 
 
CEO: Patrik Frisk (Jan 2020-)
 
Type: Clothing, Footwear, Accessories, Sports Equipment
 
Sector: Lifestyle and Retail
 
Tagline: I Will… Protect This House
 
Unique Selling Proposition: To bring innovation in its products to make fitness professionals and athletes feel comfortable. 
 
Customers: Sports enthusiasts and athletes
   
 
Target Consumers: Professional sports persons and individuals who prefer comfort and style.
 
Revenue: $5.7 billion  (2021)
 
Net Income: 397 million US dollars (2021)
 
 
 
Strengths of Under Armour:
 
 
Strong Product Portfolio:
 
The strong product portfolio has strengthened the company and its overall standing in the competitive market. They do not rely on a specific product. They are dealing in sports clothes, footwear, every type of gear, and casual wear. Such extensive range makes it a market leader. Nearly every product category of Under Armour is bestselling and helps the company to generate huge revenue every year.
 
 
Supply Chain Network:
 
The company has stunned its competitors and investors with its amazing growth in the previous years. It was only possible because of effective policies and timely decisions. They have a strong distribution network that helps the company earn immense revenue and popularity. They sell its products all over the world through direct channels, online platforms, and licensing. Such a strong factor will also help the company expand its operation in the future.
 
 
Adoption of Latest Technologies:
 
The company has created various useful fitness apps such as Endomondo, MapMyFitness, and MyFitnessPal. They like to adopt the latest technologies which assist them in securing amazing revenue every year. They are trying to create more apps in order to expand their operation.
 
 
Brand Recognition:
 
The company has won many international and local awards. It was the most valuable player in the market, according to Interbrand. These factors have helped the company to increase its brand recognition globally. This thing also erases the doubts from the mind of investors. So, they invest in the brand aggressively.
   
 
 
Strong Ecommerce:
 
According to Under Armour, they are accelerating their sales channels by introducing a new ecommerce site. They have a strong ecommerce presence and customers can buy its products from anywhere without any hassle.
 
 
 
Weaknesses of Under Armour:
 
 
Limited Global Reach:
 
As compared to Nike, Adidas, and other sports brands, the company does not have a strong global presence. It is heavily dependent on the American markets. It is a weakness of the brand and can disrupt its revenue in the future in case of any trouble. They generate most of their revenue from local markets. However, such overdependence on American markets can lead to several uncertainties for the company.
 
 
Risky Investments:
 
In previous years, the company has made several risky and big investments. These were totally unnecessary investments, and the company should think about them. They need to spend money wisely in order to make new acquisitions.
 
  1. Late Adoption of Ecommerce:
 
The company’s adoption of ecommerce has been really slow as compared to competitors. They generate most of their revenue from online channels, so they must enhance ecommerce technology.
 
 
Pitiable Expansion Policies:
 
The company has made various poor expansion decisions that are the biggest weakness of the brand. Certainly, these decisions or policies can make the brand weaker in the competitive market. Finally, they should resolve this issue and hire some experts to make effective expansion strategies.
 
   
 
 
Opportunities for Under Armour:
 
Increase Products:
 
Under Armour only deals in sports products such as shoes, clothes, and accessories, but they have the potential to introduce more products in eyewear, watches, casual wear, and much more. It is a useful method to attract more customers. It will give Under Armour a competitive advantage over competitors. Moreover, they must introduce modifications in their existing product portfolio in order to retain existing consumers. It is a big opportunity for the brand, and they can earn more revenues.
 
 
Collaboration and Partnership:
 
The company should make useful partnerships and collaborations with other brands. They have collaborated with Macy’s, Kohl, and Dillard’s. These retailers not only sell their products but also promote the brand. They should think about more collaboration in order to expand their growth and reach.
 
 
Focus on Emerging Markets:
 
Under Armour should target emerging markets to sell its products. Countries in the Middle East, Asia, and Africa have so much potential for the brand. Indeed, they can help to increase its profitability and global operation too.
 
 
Introduce More Women’s Apparel:
 
The brand must bring new products in women’s apparel because of the growing demand for women’s products. From casual to undergarments and other categories, they can introduce new products to attract women.
 
 
 
Threats to Under Armour:
 
Political Affiliation:
 
The company was in the headlines due to the association of CEO Kevin Plank with President Donald Trump. For this reason, the company faced a huge backlash from people as well as brand ambassadors. However, such controversies and scandals can hurt the business of Under Armour.
 
 
Stiff Competition:
 
Nike, Adidas, and Reebok are some of Under Armor’s biggest giants and competitors. Indeed, they are continuously disrupting the sales and profits of the company by offering innovative products at attractive prices. They can also disturb the customer base of the company.
   
 
 
Product Capabilities:
 
Many athletes and fitness devotees have criticized the company due to its poor chin straps and athletic cups. Certainly, they caused some serious injuries. However, such news could damage the reputation of the brand.
 
 
Uncertainty in the Market:
 
Recent events such as Covid-19 and the economic recession have gravely affected the brand’s profitability. Its annual sale has dropped and they can face more losses.
 
 
Conclusion:
 
This SWOT analysis of Under Armour shows a bright future for the company. Surely, they have earned immense popularity all over the world through aggressive publicity and media coverage. Moreover, its revenue is booming day by day, which opens the door of expansion. It has a strong presence in the US markets, but they have the potential to target other international markets. However, they just need to cut unnecessary expenses to avoid any risk.
 
 
 
Need Help or Advice in Content Management:
 
Do you want more advice? Do you have good practices to share? Express yourself in the comments.
 
Moreover, if you want any help to write content to drive more traffic and boost conversions, get in touch through Contact our team?
 
Do you want any help writing quality content, driving more traffic to your website, and boosting conversions? You can contact through my Freelancer.com profile. I always prefer to work through Freelancer.com for smooth functioning. Here you pay safely and securely.
 
 
 
Read More:
 
SWOT ANALYSIS OF HONG KONG DISNEYLAND FANTASY
 
SWOT ANALYSIS OF DOLCE & GABBANA 
 
Emirates PESTLE Analysis | Fly Emirates, Fly Better
 
 
 
 
  8 comments 
 
 0 FacebookTwitterPinterestEmail 
 
 
 
 
 
  Under-Armour PESTLE-Analysis  
 
 
BusinessManagementMarketingSWOT & PESTLE 
 
PESTLE Analysis of Under Armour
 
 by Shamsul   
 
 
 
 
 
 
PESTLE Analysis of Under Armour
 
 
Nearly every sports person and fitness enthusiast are familiar with Under Armour. Kevin Plank established it in 1996, headquartered in Baltimore. Under Armour is one of the biggest manufacturers of sports items, including sportswear, footwear, casual wear, and equipment. The company ships its products globally. The company has many offices worldwide, such as in New York City, Amsterdam, London, Paris, Seoul, Toronto, Shanghai, and more. We will know more about it when we will do the PESTLE Analysis of Under Armour.
 
The founder of Under Armour, Kevin Plank, was a footballer in his university. He faced various issues while playing in the form of sweat. He came up with the idea of sweat-proof sports apparel and launched his own brand. Now, some biggest competitors of the company, such as Nike and Reebok have been using dry-fit technology. We have a clear picture of the brand, so let’s start its PESTLE analysis to understand its political, economic, social, technological, legal, and environmental factors.
 
 
Political Factors:
 
The company is prone to fluctuating exchange and currency rates. As a global brand, these factors affect the brand. The impact of taxation, duties and other related factors are also crucial. Being an international brand, the company must be careful about its political associations. In 2017, the founder made a mistake by calling Donald Trump as an asset to America. Just because of this, the company faced a massive backlash from people. 
 
This statement also hurt the sentiments of many employees. They must understand this thing just to avoid such controversies in the future.
   
 
 Such political affiliations could be fatal for the growth of the company.
 
 
Economic Factors:
 
In the past few years, the company enjoyed the taste of success. It was a market leader in 2015 and 2016. But, the company has been spending millions of dollars on increasing its growth to take the competitive edge. Every brand, including Under Armour, has faced difficulties during Covid-19 in terms of lower sales and closure of stores. They have experienced such a bad time during the pandemic. The main reason for this is because of the lockdown. Sportswear demand was almost zero during the pandemic because of the shutdown of gyms, parks, and grounds. 
 
The company is now adding casual wear to its portfolio to survive in risky situations. According to financial experts, Under Armour will face more losses in the future because of the outbreak of the 4th and 5th waves.
 
   
 
Social Factors:
 
The company has faced huge criticism on various factors such as women’s inequality and sexism. According to sources, they paid huge sums to strip clubs. Such news or scandals could be deadly for the image of the brand. Under Armour should make policies on the basis of demographic trends and the spending power of consumers. The role of culture is huge in this regard. People love those products that they can easily connect with their hearts. So, you can’t neglect the impact of societal norms on the company’s business performance.
 
 
Technological Factors:
 
After seeing the online sales boom, Under Armour should enhance its technological infrastructure. They should invest in this sector if they want to stay ahead of the competition. Moreover, it is one of the most significant sources of generated online revenues. They can introduce more innovative products such as digitally-connected footwear and fitness apps. The growth chances are huge for Under Armour in this segment. These steps will help the company to grow its reach and image in the eyes of global consumers. They can manufacture shoes for different foot types to target more customers.
 
   
 
Legal Factors:
 
The company has got many claims for committing accounting fraud. In 2017, a Wall Street Journal posted an article about fraud against the company. The company posted a false revenue percentage in order to show healthier growth in the market. Such legal issues and controversies are not suitable for the brand. They can spoil the credibility and reputation of the brand. As a result, they can lose their customer base as well as market share. They must carry out all the rules and regulations in order to avoid the risk of any violation.
 
 
Environmental Factors:
 
Under Armour is a very pro-environment Sports Wear brand. The company has been taking proper initiatives to adopt sustainability, reduce carbon emission, etc. They have been working with EDF and SAC to decrease their carbon footprint. They are trying to save the surroundings by taking green initiatives. On the other hand, they are also very concerned about air and water pollution. They believe in ethical practices and these factors are its strength. Due to these initiatives, customers, especially eco-conscious people, love to buy clothes and footwear from Under Armour.
 
 
Conclusion:
 
Under Armour is a big brand in sportswear and fitness equipment. They have a strong presence worldwide, so they can take advantage of this factor. The company should add more products to its portfolio to fulfill every customer’s demand. They should also resolve small problems in order to avoid any disturbance in the business. They just need to make effective policies to grow the brand further.
   
 
 
 
Need Help or Advice in Content Management:
 
 
Do you want any help writing quality content, driving more traffic to your website, and boosting conversions? Get in touch through Contact our team or my Freelancer.com profile. I always prefer to work through Freelancer.com for smooth functioning. Here you pay safely and securely.
 
 
Read More:
 
LOOK INTO THE PESTLE ANALYSIS OF VISA CARDS
 
PESTLE ANALYSIS OF LAYS IMPORTANCE IN STRATEGIC PLANNING
 
PESTLE ANALYSIS OF DOLCE AND GABBANA (D&G)
 
 
 
 
  0 comment 
 
 0 FacebookTwitterPinterestEmail 
 
 
 
 
 
  Under Armour Marketing Strategy  
 
 
BusinessManagementMarketing
 
Marketing Strategy and Marketing Mix (4Ps) of Under Armour
 
 by Shamsul   
 
 
 
 
 
 
 
Marketing Strategy and Marketing Mix (4Ps) of Under Armour
 
 
To study Under Armour marketing strategy and marketing mix, you need to find out its product, price, place, and promotional strategy, also referred to as 4Ps. These are the core strategies that decide a company’s future, like Under Armour. They can also position themselves in the competitive environment using these four factors. Keep scrolling to read.
 
 
Product Strategy of Under Armour:
 
One of the leading sports apparel brands with fantastic brand awareness and reach, Under Armour is the most prominent name. They manufacture high-quality sports apparel along with fitness equipment. If you are a fitness or sports aficionado, then you must know this brand. It specializes in various categories of men, women, and kids. They have every type of fabric gear, such as cold gear, heat gear, and all seasons gear. From sports to sleepwear, basketball, running, golf, hiking, or name a few, they made every type of clothes for everyone. They use high-quality fabric and materials to make products. They have a wide variety of accessories, shoes, backpacks, and equipment. The outbreak of Covid-19 has affected the brand in various ways, such as profits, sales, and business performance.
   
 
 
Price Strategy of Under Armour:
 
The company utilizes a value-based pricing strategy. Their pricing strategy is very effective and they have been attracting millions of customers every year. As compared to competitors, the company charges some extra money for its products, and it is because of its high-quality products and materials. They introduce innovative designs every year, that’s why they charge some money in this regard. Its main customers are athletes and fitness professionals. They focus on functionality as well as fashion. But, it is far better than many other brands regarding designs and quality. It has been known as the market leader for many years. They used dry-fit technology in most of their products like Reebok and Nike.
 
 
Place Strategy of Under Armour:
 
The company has an impressive global presence with an incredible brand image. Under Armour follows two distribution channels to supply its products: the hybrid and direct channels. They have various company-owned stores across the globe. They also deliver products to more than 190 countries through multiple channels. 
   
 
Under Armour have a wide range of products in every segment. In the form of retail stores, the company is also working efficiently in the UK, Canada, China, Mexico, etc. On the other hand, the company is trying to grow its reach by targeting emerging economies. They have more than 15000 employees globally to help its consumers.
 
 
Promotion Strategy of Under Armour:
 
Like other brands, the company doesn’t utilize outside agencies for marketing. They have an in-house marketing agency that controls everything. They utilized everything to promote their products, from gigantic billboards to magazines, media campaigns, TV ads, and partnerships. Many celebrities and sports professionals endorse its products. They have launched various successful campaigns that help to generate most of their revenues. They also offer amazing discounts and offers to users to boost sales.
   
 
 
About Under Armour:
 
In sports apparel, Under Armour is one of the biggest brands in the world. They manufacture clothes, shoes, accessories, and sports equipment. Kevin Plank started this brand in 1996. 
 
It is a leading name in moisture-absorbing clothes and shoes. The main competitors of Under Armour are Reebok, Nike, Puma, and Adidas. They have been expanding their product portfolio by introducing casual apparel.
 
 
 
Need Help or Advice in Content Management:
 
   
 
Do you want any help writing quality content, driving more traffic to your website, and boosting conversions? Get in touch through Contact our team or my Freelancer.com profile. I always prefer to work through Freelancer.com for smooth functioning. Here you pay safely and securely.
 
 
Read More:
 
 
PESTLE ANALYSIS OF PRADA TO IDENTIFY ITS BUSINESS TACTICS
 
GROWTH AND IBM MARKETING STRATEGY | MARKETING MIX (4PS) OF IBM
 
WHY TEAMWORK MATTERS IN THE WORKSPACE AND FOR BUSINESS SUCCESS?
 
 
 
 
  6 comments 
 
 0 FacebookTwitterPinterestEmail