Under Armour’s Performance<br />• Under Armour’s PA sales and net income have increased every year since 2006.<br />
Under Armour’s Performance<br />• On average, around 80% of Under Armour’s net income comes from PA. <br />
Change in Sales by Product<br />• All $ amounts are in millions<br />• Footwear sales increased every year from 2006-2009 but decreased by 7% in 2010.<br />• PA and accessories sales have increased every year; PA had a huge increase of 24% <br /> from 2009 to 2010.<br />
Change in Distribution of Sales by Region <br />• International sales have increased every year since 2008 but UA is still heavily <br /> reliable on North America for about 90% of their total sales. <br />
Employee Distribution<br /># of Employees, % of Total Employees<br />• Under Armour has a total of 3,900 employees.<br />• Factory House and Specialty Stores employees are increasing rapidly because UA is opening more branded stores.<br />• Almost ¼ of UA’s employees are devoted to research and development.<br />
Generic Strategy<br />Competitive <br />Advantage<br />Low Cost<br />Differentiation<br />Broad<br />Target <br />Competitive <br />Scope<br />Narrow <br />Target<br />• UA is moving from niche to mainstream <br />in an attempt to compete with Nike and <br />Adidas on other product lines (footwear and <br />accessories) other than performance apparel. <br />
Value Chain<br />• UA creates value for the consumers and gains its competitive advantage <br /> against the competition primarily through technology development.<br /> • Innovation is what made UA what it is today, and Innovation is the<br /> key for future success. <br />
Ansoff’s Matrix (cont.)<br />1 = Lowest Level of Effort<br />4 = Highest Level of Effort<br />Market Penetration<br />Product Development<br />Market Development<br />Diversification<br />• UA is focused on all of these strategies but they <br />must prioritize according to what will achieve them <br />the greatest amount of success and what will put them <br />in the best position to grow in the future. <br />
PA sales and overall sales have increased every year since Under Armour has been founded.<br />PA sales account for more than 80% of total sales.<br />International sales account for less than 10% of sales but they have been increasing slightly since 2008.<br />Under Armour is attempting to make a push into international and emerging markets.<br />The two main strengths for Under Armour are its core competence in innovation and its brand equity.<br />UA is moving from niche to mainstream in an attempt to compete with Nike and Adidas on other product lines (footwear and accessories) other than performance apparel. <br />Conclusions<br />
Under Armour’s primary focus should be to increase their U.S. market share in other products such as footwear and accessories while maintaining market leadership in PA.<br />Under Armour should move into international and emerging markets with caution to assure they do not expand too quickly.<br />Under Armour needs to continue to provide value to consumers through innovation and research and development.<br />Under Armour needs to integrate their marketing plan and make sure than all sponsorships and endorsements contribute to the value of the brand.<br />Recommendations<br />
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