SWOT ANALYSIS OF UNDER ARMOUR[/b]
Under Armour is an company based in the United States, best known for its introduction of form-fitting, moisture-wicking clothing designed to be worn under sportswear.
Founder Kevin Plank was a football player with the University of Maryland who got tired of having to change out of the sweat-soaked T-shirts he wore under his jersey, but noticed that his compression shorts stayed dry. This was the inspiration to make a T-shirt using moisture-wicking fabric for athletic performance and Plank founded the company on January 29, 1996.
The company is a supplier of a much wider range of sportswear and casual apparel. Under Armour began offering footwear in 2006, and continues to expand its offerings.
In late 2007, Under Armour opened its first retail location, at the Westfield Annapolis mall in Annapolis, Maryland. In May 2008, Under Armour also opened a larger 6,000-square-foot (560 m2) store at Westfield Fox Valley in Aurora, Illinois. Under Armour has opened several other stores in 2008.
Under Armour recently opened their first store outside of North America. This is located in Edinburgh, Scotland, and is run and owned by First XV, the rugby store situated next door.
SWOT ANALYSIS OF UNDER ARMOUR[/b]
Strengths [/b]
- Brand equity
- Innovation
- Professional & college athletes sponsorship
- Attractive Logo
- Many loyal Consumers
- Being financially strong helps under armour deal with any problems, ride any dip in profits and out perform their rivals.
- A strong brand is an essential strength of under armour as it is recognized and respected.
- Under armour’s distribution chain can be listed as one of their strengths and links to success.
- High net income in year 2009
- Offering wide range of casual apparel and sports wear
- High profit to earnings ratio
- Positive response from customers
- Official outfitter of schools and universities teams
Weaknesses [/b]
- Pricing
- Narrow focus
- Advertising
- United States Marine Crops banned them for not being fire retardant - lost large part of military market.
- Very expensive
- Not reducing costs in the same way as their competitors’ means under armour is outlaying more of their profits. Having higher costs than competitors is a major weakness.
- Not having an effective marketing strategy seriously hampers the success of under armour.
- Online presence is vital for success these days, and lack of one is a limitation for under armour.
- Under armour’s limited product line is a major weakness.
- Narrow focus
- It is considered as male targeted brand
Opportunities [/b]
- [/b]Emphasize Variety of sports
- Lowered Prices
- Branch out outside of sports
- Pricing tiers
- Focus on consumer lifestyle improvements
- Include designs in the fabric to attract new customers
- Create alliance with fabric manufacturer and patent product then license product to
- Other companies
- Looking at export opportunities is a way for under armour to raise profits.
- The changes in the way consumers spend and what they buy provides a big opportunity for under armour to explore.
- New market opportunities could be a way to push under armour forward.
- Expanding the product/service lines by under armour could help them raise sales and increase their product portfolio.
- Expanding into other markets could be a possibility for under armour.
- Forming strategic alliances and joint ventures is an opportunity for under armour to maximize profit and gain new business.
- Reduce prices of the products
- Increase number of retail outlets
Threats [/b]
- Economic Recession
- Other companies in same space (Nike, Adidas, etc)
- Male dominant focus
- Recently has become a Publicly traded company
- Fairly new company (can they keep creating new ideas)
- Negative Impact on the "Green" Market
- Tax increases placing additional financial burdens on under armour could be a threat.
- The financial burden of increasing interest rates could be a threat to under armour.
- Changes in the way consumers shop and spend and other changing consumer patterns could be a threat to under armour’s performance.
- The actions of a competitor could be a major threat against under armour, for instance, if they bring in new technology or increase their workforce to meet demand.
- Substitute products available on he market present a major threat to under armour.
- Hard competition from companies such as Nike and adidas.
- Recession may impact the sale of company
- Low price importers can fetch market share
- Male dominated focus