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Under Armour Analysis

Under Armour Analysis

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  • 1. Under Armour: PEST andIndustry Analysis Brian Teufel MGT 490-004 Assignment #2 Professor McDermott March 17, 2011
  • 2.  Kevin Plank, the CEO of Under Armour developed a blue ocean strategy Created Performance Apparel market – enhances consumers performance while offering greater comfort Total sales over $1.0 billion in 2010 First-mover advantage has allowed UA to gain 70% of the U.S. market and about 15% of the global market Performance Apparel has evolved from niche to mainstream in terms of target market and competition (Nike and Adidas)
  • 3. Key Proof of Dependency Future ChallengesDependenciesInnovation 1/4 of 3,900 employees Ratio likely to decrease as UA in R&D branded stores continue to openU.S. Market 95% of sales come from International market U.S. developmentPerformance 85% of sales come from Product development of non-Apparel PA PA productsInternational Product suppliers mainly Diversify supplier locations asSubcontracting from Asia costs and inflation increase in ChinaRetailers 2 retailers make up Brand development and about 50% of sales franchising  Under Armour owns branded retail stores in 28 U.S. states (30+ stores) and 23 other countries (25+ stores). - First UA branded retail store opened on November 1, 2007.
  • 4. • Opportunities and Threats are ranked in terms of importance separately; top five of each are ranked accordingly. (1 = extremely important, 5 = Not very important.Factor Trend Evaluation; Impact Rank in O=Opportunity (1=Low; terms of T=Threat 5=High) importancePolitical - FDI policies T 2 -Economic - Economic Recovery O 3 - - Increase in cost of raw materials and T 5 1 resources; shipping costs i.e. cotton, all man made fibers, and the big one being OIL/GAS - Growth of performance apparel O 5 1 industry (Domestic and International) - Increase in interest rates T 2 5 - Inflation in China increasing T 3 4 - Chinese labor costs increasing T 3 3Social - Consumers focus on quality, not price O 3 4 - Aging population and increase in O 2 - physically active seniors - Increase in physically active women O 3 - - Consumers becoming more health O 3 - conscious - Obesity rates in U.S. T 3 2 - Sport participation is a key aspect of O 3 5 U.S. culture - Increase in sports participation in O 4 2 emerging marketsTechnological - Increase in e-commerce O 4 3 - Increase in m-commerce O 3 3
  • 5.  FDI Policies - Some foreign countries have policies in place that prohibit 100% ownership of retail stores which poses threat to internationalization Chinese Labor Costs Increasing ◦ Costs of international labor is on the rise. ◦ Hourly compensation costs of manufacturing employees in China from 2002-2008 is shown below. Year National Currency U.S. Dollar Basis Basis (Yuan) (U.S. $) 2002 4.74 .57 2003 5.17 .62 2004 5.50 .66 2005 5.95 .73 2006 6.44 .81 2007 8.06 1.06 2008 9.48 1.36
  • 6. Factor CommentU.S. and International Economic Consumers have more disposableRecovery incomeGrowth of Performance Apparel PA industry is on the rise andindustry shows no signs of slowing downChinese Inflation Chinese inflation is on the rise and expected to continue to riseIncrease in Cost of Raw Cotton, Man-made fibers, are onMaterials/Resources the rise but GAS is the big factor •The growth of the performance apparel industry is the greatest opportunity. •More Consumers = More Revenues
  • 7.  Obesity rates in U.S. show people not physically active Consumers focus on quality more than price Increase in physically active women Increase in health conscious consumers = more exercise/physical activity Sport participation is a key aspect of U.S. culture Aging population and increase in physically active seniors Increase in sports participation in emerging markets
  • 8.  Increase in e-commerce Increase in m-commerce (trend is to always have digital connection)
  • 9. Opportunity Rank in terms of Comments importance (1; least important, 5; most important)Growth of the performance 1 Protect products andapparel industry (domestic the industryand international)Increase in sports 2 Marketing will be keyparticipation in emergingmarkets (foreign markets)Increase in commerce 3 Take advantage(electronic and mobile)Consumers focus on 4 Innovation andquality more than price DifferentiationSport participation is a key 5 Sport participation willaspect of U.S. culture always be a key aspect of U.S. culture
  • 10. Threat Rank in terms of Comments importance (1; most important, 5; least important)Increase in cost of raw 1 Buy in highermaterials and resources, quantities; volumeshipping costs discountsObesity rates in U.S. 2 Marketing will be keyInternational labor costs 3 Explore new optionsincreasing for productionInflation in China 4 Explore new optionsincreasing for productionIncrease in interest rates 5 Keep debt as low as possible
  • 11.  Under Armour is in the extremely competitive performance apparel industry which is defined as anything that is worn which enhances the performance of the user. Performance apparel global sales = $6.4 billion in 2010 and is expected to grow to $7.6 billion by 2014. ◦ In 4 years, the industry is expected to grow by 15%. Participants in the PA Industry Buyers/Buyer Groups Physically active and want to enhance their performance, especially athletes. Groups include both domestic sports teams, international teams, and retailers Suppliers/Supplier Groups Third Party Suppliers (100+) Competitors Nike, Adidas, Columbia Sportswear Substitutes Conventional apparel or no apparel Potential Entrants Anyone is a possible entrant in this industry because of the high growth rates, especially organizations that produce apparel, sportswear, or equipment.
  • 12. Force High/Moderate/Low Underlying Drivers (Strong or Weak)Threat of New Entrants High WeakThreat of Substitutes - Core Athletes = High Strong - Non-Core Athletes = ModerateBargaining Power of - Athletes and Teams StrongBuyers = High - Non-Core Athletes = ModerateBargaining Power of Moderate WeakSuppliersIntensity of Rivalry High Strong
  • 13.  With the expected growth of the performance apparel industry, there will be new entrants in the industry from all over the world. Most companies who enter the performance apparel industry are unable to compete due to existing brand loyalty and the high barriers to entry. ◦ Examples include New Balance, Velocity, and Sugoi
  • 14. Factor Under ArmourLack of Direct Competition Exceptions include Nike and AdidasPA not essential to participate in UA products enhancesports or physical activity performance and allow comfortPotential Substitute Products LowSwitching Costs Low Substitutes are limited to conventional apparel or no apparel at all. Core athletes have a large number of substitute options to choose from.
  • 15. Buyer/Buyer Group Bargaining Power CommentCore Athletes High Exposure to the public andProfessional Teams builds relationshipsNon-Core Athletes Moderate - Limited competition andNon-Professional substitute productsTeams - UA’s products differentiated from competitionRecreational Buyer - Consumers do not need performance apparel to compete or be physically active The bargaining power of buyers depends on the consumer’s skill level and the level of the team.
  • 16. Factor Under ArmourSwitching Supplier Costs Moderate# of Different Suppliers Very HighProduct Uniqueness ModerateThird Party Suppliers Very High  The use of third party suppliers allows performance apparel companies to chose their suppliers based on highest quality and lowest production cost.  Third party suppliers have high bargaining power by being able to choose the companies that they want to supply for. ◦ The best third party suppliers can select the company or companies that treat them the best and provide the best compensation. ◦ There are thousands of third party suppliers all over the world.
  • 17. Factor PA Industry# of Competitors HighBrand Loyalty HighIndustry Growth Rate Extremely HighQuality differences between competitors Moderate to High Currently, the performance apparel industry is growing rapidly at 15%; this allows rivalry to grow rapidly as well. There is a high # of competitors but UA, Nike, and Adidas make up the majority of the industry due to a quality advantage over other competitors.
  • 18. Differentiation InnovationNiche R&D Enhance Performance
  • 19.  The opportunities for the performance apparel industry outweigh the threats. ◦ Labor and gas costs are increasing but opportunities such as the global growth of the PA industry, global increase in sport participation, and increase in both e-commerce and m-commerce outweigh the threats. Rivalry is extremely high in the performance apparel industry. ◦ The competition between Nike, Adidas, and Under Armour is fierce and it continues to heat up. Participants in the performance apparel industry must always be aware of new entrants because the industry is on the rise. ◦ Create high barriers to entry. Blue Ocean Strategy was the basis for Under Armour and it allowed them to achieve success in the PA industry. ◦ Innovation, Differentiation, R&D, Creating Niche of performance apparel that enhances performance while allowing comfort.
  • 20. Under Armour:Competitor andMarket Analysis Brian Teufel MGT 490-004 Assignment #2 Professor McDermott March 17, 2011
  • 21. Company PA Sales Total Sales PA sales as % % of sales (in millions) (in millions) of total sales spent on R&DUnder Armour $853 $1,060 81% 33%Nike $1,300 $19,014 7% 12%Adidas $1,150 $11,990 9% 5%Columbia $400 $1,484 27% 1%SportswearCompanySugoi $34 $85 40% 2%PUMA $425 $2,862 15% 4%Quiksilver $250 $1,834 14% 3%North Face $300 $1,400 21% 3%New Balance Private Private Private Private Company Company Company Company
  • 22. Competitive Advantage Low Cost Differentiation • New Balance • Nike • Columbia Sportswear • Adidas Company • Under Armour • Champion Broad TargetCompetitive Scope • PUMA • The North Face • Quiksilver Narrow Target
  • 23. Price Low High •New Balance Low •Champion •PUMAQuality •Columbia Sportswear •Quiksilver Company •The North Face High •Adidas •Nike •Under Armour
  • 24. 1% 2% Sales4% 9% U.S. Europe 20% Asia/Pacific 64% Rest of North America and South America Africa Australia
  • 25. -UA = 4% -UA =5% -Nike = (-6%) -Nike = 0%-UA = 23.5% -Adidas = 7%-Nike = 8% -Adidas = 2% -Col. Sportswear = 13% -Col. Sportswear = 30%-Adidas = 7% -Quiksilver = (-8%)-Col. Sportswear = 22% -Quiksilver = 4% -PUMA = (-3%) -PUMA = (-2&)-Quiksilver = (-9%)-PUMA = 22% -UA = 0% -Nike = 20% -Adidas = 16% -UA = 0% -Col. Sportswear = 13% -Nike = 20% -Quiksilver = N/A -Adidas = 14% -PUMA = -3% -Col. Sportswear = 10% -Quiksilver = (-9%) -PUMA = 22%
  • 26. Company Core Competence/Competencies Core Competencies - Weak/Moderate/StrongUnder Armour Innovation, Quality, R&D StrongNike Inspiration, Innovation, Strong Brand Image/LoyaltyAdidas Innovation, Technology, Strong SustainabilityColumbia Distribution, Outerwear ModerateSportswearCompanySugoi Quality, Bicycle-wear ModeratePUMA Sustainability, Value, Moderate International FootballQuiksilver Surfwear, Quality ModerateNorth Face Innovation, Outerwear Moderate Environmental AwarenessNew Balance Footwear, Innovation, Customer Weak ServiceChampion Comfort, Quality Weak
  • 27. Company Key Brands Product ScopeUnder Armour Under Armour Apparel, Footwear, AccessoriesNike Nike, Nike Golf, Air Jordan, Apparel, Footwear, Sporting Cole Haan, Hurley, Equipment, Accessories, Caps Converse, Umbro, ect…Adidas Adidas, Reebok, Taylor Apparel, Personal Care, Footwear, Made Golf Sporting Equipment, Accessories, CapsColumbia Columbia Sportswear, Apparel, Footwear, AccessoriesSportswear Mountain Hardware, Sorel,Company Pacific TrailSugoi Subsidiary of Dorel Apparel, Accessories Industries Inc.PUMA Puma, Cobra Golf, Tretorn Apparel, Footwear, Sporting Equipment, AccessoriesQuiksilver Quiksilver, DC, Roxy, Hawk Apparel, Footwear, Accessories, Sporting EquipmentNorth Face Subsidiary of VF Corporation Apparel, Sporting Equipment, Camping Equipment, AccessoriesNew Balance New Balance, Dunham, Apparel, Footwear, Accessories Aravon, Warrior, BrineChampion Subsidiary of Hanes brands Apparel, Footwear, Accessories
  • 28. Company Target Market Market Power (Low/Moderate/High)Under Armour Male and female, anyone who wants to High enhance performance and comfortNike Male and female, ages 18-35, physically High active, athletesAdidas Male and female, physically active, Moderate athletesColumbia Male and female, physically active, loves ModerateSportswear outdoor activitiesSugoi Male and Female, physically active, Low loves biking and runningPUMA Male and Female, physically active, Moderate loves soccer (international football)Quiksilver Male and female, young adult (ages 15- Low 35), love warm weather activities (surfing/skating)North Face Male and female, young adult (ages 16- Low 35), love cold weather activityNew Balance Male and female, older adults (ages 35+), Low love walking/runningChampion Male and female, hard working, Low physically active, all ages
  • 29.  Performance Apparel is defined as anything that is worn which enhances the performance of the user. New and existing companies are attempting to break into the PA industry every day due to the rapid growth. The top three companies in the global PA industry include Nike, Adidas, and Under Armour Gross sales come from company owned stores and third party retailers. Sell products of quality which enhance performance while providing comfort to the user.
  • 30. Global Performance Apparel Sales ($ billions)108 7.6 6.46 Global Performance4 3.3 Apparel Sales ($ 2.8 billions)2 18% Inc. 52% Inc. 15% Inc.0 2002 2006 2010 2014 • The Performance Apparel industry has grown rapidly in the past four years and it is expected to continue to grow rapidly the next four years.
  • 31. 15% 9% 22% 2% 4% 7%
  • 32. Trend Opportunity/Threat CommentSales increase (15%+) Opportunity Will continue to growQuality over price Opportunity Consumers want value for their moneyIncrease in technological Opportunity Compression apparel is currentlyinnovation the big thing in PAPeople becoming more Opportunity Market to entire market, notphysically active particular segmentsIncrease in cost of raw Threat Find ways to negate such costsmaterials/resourcesEco-friendly design Opportunity More consumers will buy product and feel they are helping the environmentFashion friendly Opportunity Consumers feel better when wearing something fashionable (esp. women)New competitors entering Threat Create high barriers to entry andmarket superior productMoving towards all ages Opportunity Market to entire market, not(older generation) particular segments
  • 33. Company Corporate Social Mission Marketing Vision/Strategy Responsibility StatementUnder Innovation, Inspiration, Make all athletes -Athlete Be the world’s #1 Reliability, and Integrity better through Endorsements performanceArmour passion, science, -Commercials/ athletic brand and the relentless Slogans (“Click pursuit of clack” and “We innovation must protect this house”) -Event and team sponsorshipsNike Sustainability, Bring inspiration -Brand Image Experience the Innovation, Quality and innovation to -Brand promotion emotions of every athlete in the -Athlete and team winning and world. sponsorships crushing the competition.Adidas Sustainability, Strive to be the -Brand Image Enhance social and Innovation, global leader in the -Focus on env. performance Environmental sporting goods international in the company Awareness industry with sports marketing and the supply brands built on a -Athlete and team chain, thereby passion for sports sponsorships improving the and a sporting lives of the people lifestyle making our
  • 34. Company Corporate Mission Marketing Vision/Strategy Social Statement ResponsibilityColumbia Responsible Provide consumers -Increase on-line Continue to business practices the greatest marketing internationalizeSportswear balancing quality outdoor -Stick to what we and provide high economic goals gear while keeping know and show quality products to with social and them safe consumers outdoor environmental advantage of enthusiasts considerations productsSugoi Innovation, Make excellent _Increase global Every garment that Excellence, Value performance awareness of carries the Sugoi athletic wear for brand name is still bikers and various _Prove quality designed, other activities and uniqueness developed, and to consumers made in Vancouver, CanadaPUMA Sustainability, Stay true to our -Sponsor PUMAvision- create work towards a values; inspire the international a safer, more more eco-friendly passion and talent football and peaceful, and more world, global of our people cricket players creative world than peace, Quality working in and teams we know today sustainable, -Increase
  • 35. Company Corporate Social Mission Statement Marketing Vision/ Responsibility StrategyQuiksilver Touch people Become the leading Focus is social Maintain our core focus worldwide and global youth apparel media and roots while bringing improve quality of company our lifestyle message of life, quality board riding, independence, creativity and innovation to this global communityNorth Send famous athletes Never stop exploring -Goal is to Our passion is beyond overseas and give increase brand setting records andFace back as much as they awareness achieving fame, its all can; innovation; -Social about changing our lives consumer-focused marketing and those people who inspire us to aim for extraordinary dreamsNew New Balance Demonstrating -Word of Continue to give back to Foundation; Make responsible leadership, mouth all communities andBalance consumers value we build global brands -Athlete provide excellent worth their money that athletes are proud sponsorships products to excellent to wear, associates are consumers proud to create and communities are proud to hostChampion Ethical business Anticipate what -Social media world-class consumer practices, protect consumers want and -Athlete goods company with a environment, quality innovate to meet those endorsements distinctive competence needs in comfort, fit, in operating a low-cost and value global supply chain
  • 36.  Social media has impacted the PA industry positively, increase in sales due to easier communication between consumers. Consumers can give feedback (+ and -) in a relaxed environment. Consumers can also socialize with other consumers to discuss PA products. Marketing has been most effected by social media with sites such as Facebook, Twitter, Foursquare, and LinkedIn. ◦ PA companies can market to larger groups of consumers at a much cheaper cost.
  • 37.  Nike and Adidas are Under Armour’s primary competition in the performance apparel industry. Nike and Adidas have jumped UA in total PA sales even though PA accounts for only 7% of Nike’s and 9% of Adidas’s total turnover. Under Armour would be the global leader in performance apparel sales if they were as successful internationally as they currently are in the U.S. Asia and North America are fueling growth in the performance apparel industry with Europe also growing. The performance apparel market is growing at a rate of higher than 15% and it is expected to continue to increase for the for seeable future.
  • 38. Under Armour: Internal Analysis, SWOT Analysis, Competitive Position, andConclusions/Recommendations Brian Teufel MGT 490-004 Assignment #3 Professor McDermott March 17, 2011
  • 39. Year PA Sales Total Net Total Net % of Net (in Sales (in Income Income Income millions) millions) from PA (in from PA (in millions) millions) 2006 $373 $431 $32.4 $39 83% 2007 $513 $607 $40.5 $52.6 77% 2008 $579 $725 $31.5 $38.2 82% 2009 $652 $856 $38.2 $46.8 82% 2010 $853 $1,064 $55.1 $68.5 80%• Under Armour’s PA sales and net income have increased every year since 2006.
  • 40. $1,200.00$1,000.00 $800.00 Licensed Revenue $600.00 Accessories Footwear $400.00 Performance Apparel $200.00 $0.00 2006 2007 2008 2009 2010• On average, around 80% of Under Armour’s net income comes from PA.
  • 41. • All $ amounts are in millionsYear PA % inc. Foot % inc. Access- % inc. Licensed % inc. Total % inc. % dec. wear % dec. ories % dec. Revenue % dec. Sales % dec.2006 $373.2 - $26.9 - $14.9 - $16 - $430.7 -2007 $513.6 27% $40.9 34% $29.1 49% $24 33% $606.6 29%2008 $578.9 11% $84.8 52% $31.5 8% $30 20% $725.2 16%2009 $651.8 11% $136.2 38% $35.1 10% $33.3 10% $856.4 15%2010 $853.5 24% $127.2 (7%) $43.9 20% $39.4 15% $1,063 19%• Footwear sales increased every year from 2006-2009 but decreased by 7% in 2010.• PA and accessories sales have increased every year; PA had a huge increase of 24% from 2009 to 2010.
  • 42. Year N.A. Sales % inc. % of Total Foreign % inc. % of Total (in millions) % dec. Sales Sales % dec. Sales2006 $415 - 100% $0 - 0%2007 $582.5 29% 100% $0 N/A 0%2008 $692.4 16% 95% $32.9 100% 5%2009 $808 14% 93% $48.4 32% 7%2010 $997.8 19% 91% $66.1 27% 9%• International sales have increased every year since 2008 but UA is still heavily reliable on North America for about 90% of their total sales.
  • 43. Asset Distribution Cash and Cash Equivalents Accounts Receivable 12% 30%11% Inventories 15% Property and Equipment 32% Other Asset $ in Millions Cash and Cash Equivalent $203.870 A/R $102.034 Inventories $215.355 Property and Equipment $76.127 Other $77.992 Total Assets $675.378
  • 44. 200, 5% Factory House and Specialty Stores 900, 23% Distribution Facilities 2200, 57% 600, 15% Research and Development Other # of Employees, % of Total Employees• Under Armour has a total of 3,900 employees.• Factory House and Specialty Stores employees are increasing rapidly becauseUA is opening more branded stores.• Almost ¼ of UA’s employees are devoted to research and development.
  • 45. Strength Impact (1=Low; 5=High)Brand Loyalty 4Brand Equity 5Core competence in Innovation 5High Quality Apparel 4Increase in Sales Every Year 3Wide Range of Apparel 3Athlete and Team Sponsorships and Endorsements 3Very Intelligent and Efficient R&D Team 4Weakness ImpactSmall Total Sales and Net Income compared to Nike and Adidas 4Heavily Dependent on Domestic Market; Small International Presence 5High Prices 3Not a Synergistic Marketing Campaign 3Heavily Dependent on PA for Sales (80%+) 4Target Male Market more than Female Market 227% of Sales come from 2 Distributors; Dick’s and The Sporting Authority 4
  • 46. Opportunity Impact (1=Low; 5=High)Economic Recovery 3Growth of PA Industry (Domestic and International) 5Consumers focus on Quality, not Price 3Aging population and increase in physically active seniors 2Increase in physically active women 3Consumers becoming more health conscious 3Sport participation is a key aspect of U.S. culture 3Increase in sports participation in emerging markets 4Increase in e-commerce and m-commerce 4Threat ImpactFDI Policies 2Increase in cost of raw materials and resources; shipping costs 5i.e. cotton, all man made fibers, and the big one being OIL/GASInflation in China Increasing 3Chinese Labor Costs Increasing 3Obesity Rates in U.S. 3
  • 47. Rank in respect to entire Factor S/W/O/TSWOT Analysis 1 Core Competence in Innovation S 2 Increase in cost of Raw Materials, Resources, T and Shipping Costs . . . OIL/GAS!!!! 3 Brand Equity S 4 Heavily Dependent on U.S. Market; Small W International Presence 5 Growth of PA Industry O 6 27% of Sales come from 2 Distributors W 7 Heavily Dependent on U.S. Market for PA Sales W 8 High Quality Products S 9 Increase in Sports Participation in Emerging O Markets
  • 48. Competitive Advantage Low Cost Differentiation Broad Target Moving HereCompetitive Scope Narrow Target Started Here • 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.
  • 49. Market Share High Low •Performance Apparel High •Footwear Star Question Mark •AccessoriesMarketGrowth Low Cash Cow Dog
  • 50. • UA creates value for the consumers and gains its competitive advantage against the competition primarily through technology development. • Innovation is what made UA what it is today, and Innovation is the key for future success.
  • 51. Primary Activities Weak/Moderate/Strong Under ArmourInbound Logistics Moderate Third PartyOperations/Manufacturing Moderate Third PartyOutbound Logistics Moderate Third PartyMarketing and Sales Moderate Currently, UA has many sponsorships and endorsements but no synergy in marketing planAfter-Sale Service Strong UA has great reputation for customer service and after-sale serviceSupport Activities Weak/Moderate/Strong Under ArmourFirm Infrastructure Strong UA is structured very well and has great company cultureHuman Resources Moderate UA is limited by only havingManagement 3,900 employees but they hire and train very wellTechnology Development, Very Strong Innovating and producingEngineering technologically advanced products is what UA doesProcurement Moderate Third Party
  • 52. Component CommentInnovation UA is extremely reliant on producing innovative products that will continue to impress their consumers and hold on to high brand equity and brand loyaltyMarket Development UA is really focused on selling their products to emerging markets; 90%+ of UA’s products are sold in the U.S.Market Penetration UA would love to improve their market share in the U.S. for PA and improve their footwear and accessories sales as wellProduct Development UA is devoted to continue to introduce new products to the U.S. and also other emerging markets around the worldResearch and Development UA plans on continuing to produce new and technologically advanced products which are superior to the competition
  • 53. Strategy Products, Market Under ArmourMarket Penetration Existing Products, Very Strong Existing products Existing Market are high quality and UA holds majority of existing market (U.S.) - Continue increasing U.S. market shareMarket Development Existing Products, Strong Existing products are New Market high quality but UA needs to increase market share in international and emerging marketsProduct Development New Products, Very Strong All new products Existing Market are technologically advanced from previous products -U.S. market receives new products extremely well (Loves Innovation)Diversification New Products, Weak Very difficult to New Market introduce new products into new markets without having a decent market share of existing products
  • 54. 1 = Lowest Level of Effort4 = Highest Level of Effort Existing Products New Products 2 3Existing Market Market Penetration Product Development 4 1New Market Market Development Diversification • UA is focused on all of these strategies but they must prioritize according to what will achieve them the greatest amount of success and what will put them in the best position to grow in the future.
  • 55.  Domestic Sponsorships/EndorsementsAthlete/Team Association/Sport Type of DealAll Teams NFL Official supplier of FootwearAuburn, Boston College, NCAA Official OutfitterMarylandBrandon Jennings NBA EndorsementLindsey Vonn Skiing EndorsementTom Brady NFL EndorsementMichael Phelps Swimming EndorsementHunter Mahan PGA EndorsementCam Newton NCAA/NFL Endorsement  International Sponsorships/EndorsementsAthlete/Team Association/Sport Type of DealTottenham Champions League PA and Accessories ProviderHockey Canada National Team Official OutfitterHanover 96 Bundesliga PA and Accessories ProviderAll Teams Welsh Rugby Union PA and Accessories Provider
  • 56.  PA sales and overall sales have increased every year since Under Armour has been founded. PA sales account for more than 80% of total sales. International sales account for less than 10% of sales but they have been increasing slightly since 2008. Under Armour is attempting to make a push into international and emerging markets. The two main strengths for Under Armour are its core competence in innovation and its brand equity. 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.
  • 57.  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. Under Armour should move into international and emerging markets with caution to assure they do not expand too quickly. Under Armour needs to continue to provide value to consumers through innovation and research and development. Under Armour needs to integrate their marketing plan and make sure than all sponsorships and endorsements contribute to the value of the brand.