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Running head: UNDER ARMOR SWOT ANALYSIS

Under Armor SWOT Analysis

Name

Institution Affiliations
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UNDER ARMOR SWOT ANALYSIS
The Under Armor Company (UA) is a large-scale manufacturer of superior T-shirts that

enhance skin protection by compressing and controlling skin perspiration effectively. The

organization commenced its operation since 1996 under the control of Kevin Plank, who is a

retired soccer participant for the University of Maryland. The builder of this superior wearing

aims to ensure athletes maintain a calm atmosphere while staying dry and light through their

performance in gaming, practicing, regular warm-ups, (Caroline, et al. 2014). The knowledge

integrated to attain success through the entire market is quite complex but advantageous to

enhance benefits, it includes developing appropriate gears such as heat-gear, cold-gear, and all-

weather gear to cover the hot, cold and all weather seasons respectively. Currently, the company

is striving to ensure a powerful growth in its core areas such as global wholesaling and the

improvement of a consumer-oriented approach to the sports market. The company assumes the

success of this approaches by securing opportunities and optimizing its capabilities by

encroaching new areas including developing footwear and connected fitness of the gears,

(Caroline, et al. 2014).

A SWOT assessment of the UA Company is essential to determine the benefits enjoyed,

and obscurities averted to sustain its growth. Firstly, it is through strength that the company has

attained an effective runaway growth strategy, with trendy integrated advertising, and a bright

outlook. The company’s finances are quite stable, and this provides an ample chance to facilitate

grand advertising to cover a wide market, (Jurevicius, 2016). An instance of pompous

advertising includes that of Stephen Curry playing for the Golden State Warrior team. It is

through this advertising forum that the company has enhanced an impressive image, which is

attracting a lot of young consumers across the globe.

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UNDER ARMOR SWOT ANALYSIS
In its weakness, the company is tactically spending highly on investments although this

concept is contempt of modern concerns. The company has to ensure vast investment on

expenditures to enhance product development and actualization of endorsements. An occurrence

of cash outlay such as this subtracts on the anticipated dividends that may discourage investors

from utilizing the UA resources. The UA can avert this weakness by managing viable data on

consumer habits and finesse its advertising tactics to wrest a significant increase in market share.

Despite the weaknesses, the UA Company has managed to seize a significant amount of

opportunities. Footwear project is one the creativities the company is looking forward to

exploiting effectively. The company is estimating a possible sales growth of about 30 percent

annually upon gaining ground in unpenetrated sports realms such as golf and tennis among

others, (Jurevicius, 2016). Additionally, the company enjoys direct distribution to customers

enabling it to expand its retail presence to a wide scope. It mostly involves launching of factory

outlets in untapped rural and suburban regions of the U.S. consumer market allowing smooth

flow of inventory through a large geographical network, (Jurevicius, 2016).

The UA Company is also vulnerable to threats from established competitors and also due

to poor selection of alternatives. NIKE has been an entrenched industry leader for a long time

and expresses potential risk against competition from the UA firm. NIKE threatens competition

by outbidding other firms in manipulative endorsement deals, which in turn enables it to secure

cheap sourcing firms from emerging markets, (Hellman, 2015). Under armor has broadened its

ambitions and mission to cope with the contemporary competition. Engrained in a sound

reputation, the UA has managed to obtain a priority choice in the market as compared to its

competitors such as NIKE. Reports indicate that the company can yield approximately 10%

sales revenue from international sales, this is an indication of potential growth, (Hellman, 2015).
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UNDER ARMOR SWOT ANALYSIS
It has integrated its products to fit the modest fitness craze as the electronic technology is

increasing its related features, and they range from heart rate monitors to social interaction

abilities. Additionally, the company has experienced a burst in its endorsement decisions majorly

losing bets with Mr. Curry. The solution to this catastrophe requires a reimbursement that the

UA Company hesitates to comply.

Under Armor determines its market segment based on age, gender, and climate. In the

age segment, customers demand different gears based on their age. For this reason, even though

the consumer group of age 0-10 is low, the company manufactures attractive gears at a lower

price designed to fit beginners and enhance the utility of the items. In considering gender, the

company develops colorful and trendy gears for females while male gears are tear resistant and

durable with an appealing masculine vibe, (Caroline, et al. 2014). Further, the climate outlook

indicates that the company has manufactured “HeatGear”, made of special fabric adaptive to

humidity changes to control body temperature in aggressive adrenaline exercises. An

advancement of the “HeatGear” model plays a similar function although in a cold atmospheric

environment.

Under Armor considers the vulnerability of the European market as a chance to growth

across the Atlantic market. The firm recognizes that a large population of the Europeans engages

in football action, there is a need to consider the age, gender, and climate factors to facilitate

better alternatives, (Caroline, et al. 2014). The firm has dedicated its investments in market

research to enhance viable information for developing a practical marketing plan.

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UNDER ARMOR SWOT ANALYSIS

Strengths Weaknesses
-competitive pricing -low shoe sales
-industry pioneer -high investment on advertisement for men
-duopoly with Nike

Opportunities
-high chances for international growth
-improving footwear sales
-more females joining the football fun
(Caroline, et al. 2014).
Threats
-Prevalence by Nike and Adidas.
-Competitors are gaining power on the industry
with cheap substitutes.

Foot wear relative to competition

High function High price
-Adidas -nike
-columbia
-reebock
Low function Low price
-none -under armor
-puma
(Caroline, et al. 2014).
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UNDER ARMOR SWOT ANALYSIS

References
Caroline Quamme, N. M. (2014). Marketing Case Analysis: Under Armour. Changing
Consumer Culture First Year Seminar . 16.
justine hellman. (2015). Under Armor: A Short SWOT Analysis. Valueline publishers. New York
Jurevicius, O. (2016). Apple SWOT analysis 2016 | Strategic Management Insight.
Strategicmanagementinsight. Apple.inc. 203.