Armour has formed a strong client base of athletes and sport enthusiasts. Fans are loyal and choose the brand over others because they believe in the company mission and the quality of the product. The company has access to many loyal athletes that are used as influential in commercials due to the relationships formed with college and professional athletes. While successful in their performance apparel endeavors, Under Armour has faced a different experience with the original launch of their footwear in 2009, probably because it did not include any of the technology that makes the performance wear so valuable to its fans. With the addition of Under Armour-ESQUE Technology to the shoe designs, this attempt should be a bit more successful, but not everyone is convinced. When evaluating the Q3 2011 financial results, it was realized that many people did not like Under Armour’s footwear strategy and it was predicted that a replica of the 2009 incidence would be experienced.
Table of Contents
1. Background Information
2. Environmental scan
2.1 Internal Environment
3. SWOT Analysis
3.1 Strengths
3.2 Weaknesses
3.3 Opportunities
3.4 Threats
4. The External Environment
5. The Industry
Objectives and Topics
The primary objective of this strategic document is to analyze Under Armour's current market position, evaluate its internal and external business environment, and assess the feasibility of its strategic initiatives, particularly the expansion into the footwear market. The paper explores the company's competitive landscape, historical development, and the challenges associated with growth in a saturated industry.
- Historical evolution and development of Under Armour
- Internal organizational environment and market reach
- Comprehensive SWOT analysis of the brand
- External macro-environmental factors and economic impact
- Industry-specific competitive analysis and branding strategies
Excerpt from the Book
The External Environment
The economy that Under Armour finds itself re-launching the footwear line in is less than ideal. The unemployment rate in the United States is at approximately 9.1%, (Bureau of Labor Statistics, 2011a) and the U.S. Federal Reserve has recently downgraded its projection of the economic outlook. Fed Chairman Ben Bernanke stated that the Economic growth remains exasperatingly slow although it strengthened in the third quarter (Xinhua, 2011). Fed also said that the recent indicators point to continuing weakness is the overall labor market conditions and the unemployment rate, which was elevated (Xinhua, 2011). The overall economy is slightly stronger than it was in 2009, when Under Armour attempted its first footwear launch, but growth remains slow.
Under Armour’s biggest competitor is Nike. When venturing into the footwear market, Under Armour will move into territory where their competitor already has a strong foothold. Nike, on the other hand, moved into the performance apparel. Nike initiated a full out attack on Under Armour's throttlehold in the year 2005. According to the Morningstar Incorporation, a Stock analyst, Brady Lemos, estimated expenditures for the behemoth amounted to $30 million (Bloomberg, 2011a).
Summary of Chapters
Background Information: This chapter details the origins of Under Armour, founded by Kevin Plank in 1996, and tracks its growth into a major performance apparel supplier.
Environmental scan: This section provides an overview of the internal organizational environment, focusing on the company's customer demographics and endorsement strategies.
SWOT Analysis: This chapter evaluates the internal strengths and weaknesses of the brand alongside external opportunities and threats in the current market.
The External Environment: This section examines macro-economic factors, such as unemployment and U.S. economic growth, and their impact on the company's footwear launch.
The Industry: This chapter analyzes the competitive landscape of the athletic footwear market, highlighting the dominance of brands like Nike and Adidas.
Keywords
Under Armour, Performance Apparel, Footwear Market, Nike, SWOT Analysis, Strategic Planning, Market Share, Athlete Endorsements, Economic Environment, Branding, Consumer Loyalty, Competitive Landscape, Product Launch, Athletic Performance, Retail Strategy
Frequently Asked Questions
What is the core focus of this document?
This report focuses on the strategic evaluation of Under Armour, specifically analyzing its business model, market position, and the challenges faced during its expansion into the athletic footwear industry.
What are the primary thematic areas covered?
The paper covers the historical founding of the company, internal environmental factors, comprehensive SWOT analysis, the impact of the broader economic climate, and the dynamics of the competitive athletic footwear industry.
What is the central objective of the study?
The goal is to assess Under Armour’s operational and strategic status, evaluating whether their current marketing and footwear strategies are sustainable amidst strong competition from giants like Nike.
Which methodology is employed in this research?
The paper utilizes a strategic management approach, employing internal and external environmental scanning and a SWOT analysis to evaluate the company's competitive standing.
What is discussed in the main body of the text?
The main body investigates the company's history, its internal customer base and brand value, the SWOT metrics, external economic pressures like unemployment, and the specific competitive rivalry with Nike.
Which keywords best characterize the work?
Key terms include Under Armour, Performance Apparel, SWOT Analysis, Footwear Market, Strategic Planning, Competitive Landscape, and Market Share.
How does Under Armour compare to its main competitor, Nike?
Nike is identified as the dominant market leader, controlling a significant portion of the basketball shoe market and actively challenging Under Armour's hold on the performance apparel sector.
What specific challenge did Under Armour face regarding its 2009 footwear launch?
The initial 2009 launch struggled, likely due to a lack of specialized technology in the footwear, leading to market skepticism regarding their future footwear strategy.
- Citation du texte
- Hillary Mwendwa (Auteur), 2011, Strategic Plan of an Athletic Apparel Label: Under Armour, Munich, GRIN Verlag, https://www.grin.com/document/269358
