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Strategic Analysis of Under Amour

By

ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.



DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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EXECUTIVE SUMMARY

Under Armour Inc. is the leading sports equipment manufacturing firm in the world today. Since its inception, it has enjoyed a formidable position in the sports apparel manufacturing sector. There are various factors that have contributed to Under Armour's unprecedented success, but two major factors stand out i.e. leadership and strategic management of the firm's operations. This paper is based on questions, which are related to strategic management, organisational environment and Under Armour's marketing strategy in the international market. In this paper, Under Armour's manufacturing strategy in and Under Armour's strategic management options. The concept of the strategic capability and its implementation into the process of strategic planning in the businesses like Under Armour is very crucial. The Under Armour managers can not necessarily be in need of the strategic capability because it helps in building the concept of international business which has not been properly explored. Under Armour continues today to sponsor famous athletes, organise your sports activities and to develop revolutionary products for sports. The company believes that if a person has a body, it is in any case, the athlete. And that means its target audience. Under Armour is the leader in the sports retail world for providing the sports retail and customer-to-customer services. The main competitive advantage of Under Armour is their core competencies, and distinctive competencies. There are many reasons that competitors cannot compete Under Armour, main reasons are international dominance, alliances and their recognisable brands.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

EXECUTIVE SUMMARYIV

BUSINESS ANALYSIS OF UNDER ARMOUR1

Introduction of the company1

Mission Statement3

Business Description of Under Amour3

Industry Overview5

STRATEGIC MANAGEMENT IN SPORTS ACCESSORIES COMPANIES6

Networking6

Relationships6

Customers7

Firm Resources and Sustained Competitive Advantage9

Resource Disadvantage10

Stakeholders11

Profitable and Unprofitable Strategies12

Survival Chances13

Organizational Competence13

Knol/edge Resources14

STRATEGIC ELEMENTS EVALUATION15

Challenges15

Advantages15

Weakness16

Opportunities16

Threats17

Market share17

E Commerce18

Advertising and Promotion18

Products19

Price19

Market Research20

Under Amour Securities20

SWOT ANALYSIS OF UNDER ARMOUR22

Strengths22

Weaknesses25

Opportunities26

SWOT ANALYSIS OF NIKE31

Strengths31

Weaknesses31

Opportunities32

Threats32

Competitive Profile Matrix33

External Factor Evaluation Matrix34

Internal Factor Evaluation (IFE) Matrix35

SPACE Matrix36

Internal-External Matrix38

BCG Matrix39

COMPARISON BETWEEN UNDER ARMOUR AND NIKE40

Comparative Strengths40

Market Value40

Diversity at Nike40

Nike Boardroom Diversity41

How Nike Has a Larger Share of Diverse Markets41

Diverse Market Segmentation42

Extent of Diversity at Under Amour43

Diversification in the Developing Countries43

PEST ANALYSIS OF UNDER ARMOUR44

Political Analysis44

Economic Analysis44

Social Analysis44

Technological Analysis45

PORTER FIVE FORCES MODULE ANALYSIS46

Threat of potential entrants46

Threat of substitutes46

Bargaining power of buyers47

Bargaining power of suppliers48

Rivalry among competitors48

COMPANY COMPETITIVE POSITION50

Global Dominance by Costs50

Differentiation51

MC Objectives51

Shrinking Marketing Budget and 2009 Economic Situation52

The Role of IMC at Under Amour52

International Trade53

FINANCIAL ANALYSIS55

CONCLUSOIN58

Recommendation59

REFERENCES61

APPENDIX64

Competitive Profile Matrix64

External Factor Evaluation Matrix65

Internal Factor Evaluation (IFE) Matrix66

SPACE Matrix67

Internal-External Matrix69

BCG Matrix70

BUSINESS ANALYSIS OF UNDER ARMOUR

Introduction of the company

The company's range ...