Swot and Value Chain Analysis of Under Armour

Topics: Marketing, Brand, Manufacturing Pages: 6 (1844 words) Published: July 10, 2013
Case Study: UNDER ARMOUR
SWOT Analysis
S – Strength
Under Armour can became the first in US is because they have great product. Under Armour has a significant impact, so an analyst should put more weight into it. This statement will has a short-term positive impact on this entity, which add to its value. This statement will lead to an increase profits for this entity.

Loyalty
Under Armour have their own market, they will not loss the any customer from this market, and this type benefit also became their strength, can let the Under Armour became the first sport equipment in US.

Innovative culture
A company with an innovative culture continuously produces new and inventive products. An innovative culture can boost a company’s brand value, because consumers associate the company with the latest products. Besides the brand boost, new products can help a company stay competitive in a tough market. If a company has the best product in a segment, they are likely to gain market share in that segment. Innovative culture has a significant impact, so an analyst should put more weight into it. Innovative Culture will have a long-term positive impact on the entity, which adds to its value. This qualitative factor will lead to a decrease in costs.

Free Endorsements
Free endorsements have a significant impact, so an analyst should put more weight into it. Free Endorsements will have a long-term positive impact on the entity, which adds to its value. These statements will have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for this entity. Free Endorsements is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.

W – Weaknesses
Geographic Distribution
Limited of sales outside of the North American market were primarily the result of an emerging international penetration plan that received new emphasis in 2006 with the opening of a European headquarters. In order to increase the graphic diversity of sales, some of the headquarters in Hong Kong, China, Canada, and Netherlands were opened to manage sales and distribution channels, and additional experienced industry talent was brought on board in 2007. Besides that, under Exhibit 6 diagram, we can see that most of the sales that come from Under Armour are from men’s apparel. This look like the company major target customer more is on men.

Major Competition
Under Armour have competitor such as Nike, Adidas, Columbia Sportwear, SportHill etc. The company let low barrier to entry that many competitor easier entry into the market. Under Armour has let Nike become the industry leader that is continually striving to stay ahead of the competition. They become known as high quality, innovative product that consumer and athletes to wear and were willing to pay a premium price to own. Adidas is the second largest athletes apparel manufacturer in the world. Adidas product line includes shoes and athletic apparel.

Business Strategies
Under Armour facing a degree of economic risk associated with the premium pricing and Under Armour is feeling the effects of the current declining retail consumer market that is affecting the broader economy. Additionally, Under Armour is exposed to a degree of risk by offering closely related, nonessential products that are, to a degree, subject to the fashion whims of its customers.

O – Opportunities
Diversified
Since the Under Armour Brand was perceived as a male-targeted product, Under Armour now had a great opportunity to expand its product lines into various segments. For example, Under Armour introduced a loose-fit clothing line and added women’s clothing to its product. Furthermore, Under Armour accessories category is developed. The primary accessories products are performance gloves for football, baseball, running, and golf aligned...
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