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  • Essay / Swot Analysis of Under Armor - 1196

    Company OverviewIn 1996, Under Armour, Inc. (UA) was founded by Kevin Plank as a former University of Maryland football player. Kevin Plank started his business with the idea of ​​altering an athlete's T-shirt. The jersey uses moisture-wicking fabrics to keep athletes cool and dry, and works on the body to regulate temperature to improve athlete performance (Under Aumour, “About Under Armour” nd) . Under Armour's mission is to make all athletes better through passion, design and the relentless pursuit of innovation (Under Aumour, “Brand Mission” nd). Under Armor has developed different products that athletes can use in different seasons for men, women and youth, such as HeatGear, designed to be worn in high temperatures, ColdGear, designed to be worn when the body circulates body heat from one hot spot to another. normal body temperatures, and AllSeasonGear, which is designed to be worn in changing temperatures (Under Aumour, “About Under Armour” nd). Under Armor develops, markets and distributes its athletic apparel, footwear and accessories across continents such as North America, Asia, Europe, the Middle East and Africa. It is looking for an expanding market in the future (Under Aumour, “Shop of Under Armour” nd). Under Armor is headquartered in Baltimore, Maryland. Additionally, it also operates in Canada, the United Kingdom, Australia and 80 other countries (Under Aumour, “Find a Retailer” nd). It distributes its products through retail stores and online.SWOTA AnalysisAll I: Superior PricingUnder Armour's prices remain higher than its competitors with the majority of products capable of increasing its profits and margins. With the premium price, the company can compete with its comp...... middle of paper ...... its prices (Trefis Team, 2013). Additionally, the price of oil has a significant impact on its gross margin because oil is one of the raw materials for clothing products. In recent years, the company has faced high oil prices due to the global economic situation which has reduced its gross margin (Trefis Team, 2014). Threat II: Wholesale customers hold leverage. Two large wholesale clients, Dick's Sporting Goods and The Sports Authority. , have an important role in the sale of Under Armour. More than 20% of the company's revenue came from the two wholesale customers (Trefis Team, 2013). The company has not signed long-term contracts with the two wholesale customers, so it will have a chance of losing sales (Trefis Team, 2013). These two wholesale customers hold negotiating power because they could replace Under Armor products with other products from its competitors...