Environment analysis for Under Armour

1. ! Page1
An Environmental Analysis for
Under Armour
Jordan Brong
Full Sail University
Project & Portfolio II: Business and Marketing
2/11/19

2. ! Page2
The STEEPLE Analysis (Citations required)
SOCIOLOGICAL: Quality not price. Customers are looking for the quality of the product more so
than the price. They want to know the product they’re buying is top quality and will last them a
long time in order to get their money’s worth. Erik Kobayashi-Solomon says that “a professor at
Rochester University in a paper called Quality Investing. The member asked if we should
be worried that Under Armour's quality ratio had been on a pretty steady decline for
some time. (SeekingAlpha.com, 2017)
TECHNOLOGICAL: Connected fitness. In 2013 Under Armour bought out a app what they
thought was going to be the next big thing. MapMyRun is an app Under Armour invested
in over 100 million dollars in because they saw this as a opportunity to grow their
footwear products. Certain shoes offer the connect-ability feature so athletes can track
their runs and get a more accurate reading on the runs they do and how they can improve.
After Under Armour put its connected fitness platform in place, it began to incorporate
fitness and apparel products into the digital experience. Its new Gemini line of running
shoes and HealthBox fitness system seamlessly connect the physical and digital world.
They automatically track your health and fitness activity as you exercise and sync with
UA’s apps, including MapMyRun and UA Record, so you can leave your phone at home.
(forbes.com, 2017)
ECONOMIC: Shipping Costs. Shipping is a growing problem for online shoppers and the
shipping costs is something that drives away potential customers. If they believe the
shipping costs are too much they forgo the sale and find different products to substitute
they believe is the right price. Under Armour has recently been known to get the
packages to their customers quicker than any other clothing company and that could be a
potential way they can turn this potential sales killer into something that benefits both
the company and the consumer.

3. ! Page3
ECOLOGICAL: Dwayne “The Rock” Johnson is teaming up with training and sportswear
brand Under Armour this Veterans Day on a new collection that highlights and supports
first responders and members of the military. Launched in stores and online this past
weekend, the “11.11.11” Capsule Collection is timed to Veterans Day and the 100th
anniversary of the end of World War I, and will benefit the non-profit relief organization
Team Rubicon, which employs military veterans to help train, prep, and deploy
emergency response teams to areas affected by natural disasters and humanitarian crises.
(variety.com, 2018)
POLITICAL: The Baltimore-based athletic-gear purveyor has generated a slew of headlines
in the past two days, starting with comments made on Tuesday after CEO and founder
Kevin Plank when he expressed enthusiasm for President Donald Trump. In an interview
on CNBC, Plank said “to have such a pro-business president is something that is a real asset
for the country.” (fortune.com, 2017)
LEGAL: Under Armour was among the hardest hit by the bankruptcy and subsequent
liquidation of Sports Authority in 2016 — and now the company and several of its
executives are being sued for allegedly misleading investors about the risk of this
financial blow. They allege that the executives issued “false and misleading
representations about Under Armour’s vitality, continuing growth and revenues” in the
lead-up to and during Sports Authority’s bankruptcy, downplaying its potential impact in
order to artificially inflate the company’s share price. (footwearnews.com, 2018)
ETHICAL: Strip clubs to help land sponsorships. Over the years, executives and employees of the
sports-apparel company, including Chairman and Chief Executive Kevin Plank, went with
athletes or co-workers to strip clubs after some corporate and sporting events, and the company
often paid for the visits of many attendees, people familiar with the matter said.In response to
questions from The Wall Street Journal about the incidents and the company’s culture, Mr. Plank

4. ! Page4
said in a statement: “Our teammates deserve to work in a respectful and empowering
environment. We believe that there is systemic inequality in the global workplace and we will
embrace this moment to accelerate the ongoing meaningful cultural transformation that is
already under way at Under Armour. We can and will do better.” (wsj.com, 2018)

5. ! Page5
The SWOT Analysis
HELPFUL HARMFUL
IN
TE
RN
AL
STRENGTHS
1. American Brand- Under Armour is
known as a American brand due to the fact
that Kevin Plank has chosen to keep the
headquarters in the USA in Baltimore
Maryland.
2. Good reputation- Under Armour is
known for not being a controversial
company. They have not had a big scandal
or campaign that was controversial so in
all they have kept their reputation afloat.
3. Solid athlete sponsorships- Under
Armour doesn’t sponsor a lot of big names
but when they do they usually go for the
biggest name. Tom Brady, Steph Curry,
Dwayne Johnson, and Jordan Speith are
just some of the top tier athletes they
sponsor.
WEAKNESSES
1. Can be pricy- Some of Under Armour
products can be be fairly pricy which will
turn off potential customers.
2. Heavy spending onConnected Fitness-
Under Armour has invested a lot of money
into connected fitness and they believe this
is the next big thing of the future. With
connected fitness there is a bluetooth chip
inside your running shoe so you can track
your walks/runs in real time and get a
more accurate reading than what your
phone or Fitbit can provide. It is a big risk
and we have to wait and see if it works out
for Under Armour.
3. Mainly known for males- Most of the
products Under Armour provide are for
males which causes their sales for women
athletes to go down.

6. ! Page6
EX
TE
RN
AL
OPPORTUNITIES
1. Jersey sponsorship deal with NHL- Nike
has become the Jersey sponsor for the
MLB,NBA, and NFL and extending a
sponsorship deal with the NHL could
really build brand reputation with this
deal.
2. Expand footwear products- Under
Armour is still fairly new to the shoe
market but all of their shoes are geared
mainly for running. If they expand into
lifestyle shoes they could gain a whole new
market. Maybe partner with another
brand or athlete and work together on a
new line.
3. More commercials- Nike and Adidas are
known for some hard hitting
rememberable commercials which help
their brand recognition and Under
Armour could really benefit from that and
capitalize on all the new products they are
trying to showcase.
THREATS
1. Competitors- Being in the sport clothing
industry you have lots of competitors and
you don’t know what they’re going to do or
what they’re going to unveil next.
2. Social Media- Social Media has taken
over this technology driven world today
and is a main focus of companies today.
Making one bad move on a social media
platform can ruin the reputation Under
Armour has worked hard on building up.
3. Lack in global sales- Under Armour is a
American country with a American
following. This causes them to lack the
global sales they need in order to compete
in this tough market. Growing their brand
in other countries will help them grow.

7. ! Page7
Conclusions: (Include Citations)
Under Armour is a company who had a run of success but has recently taken a turn for the worse.
They were known for their high quality products that were comfortable and fashionable. They
have been trying to expand their company and consumers have not adapted to the recent changes.
Under Armour has a good reputation it just hasn’t succeeded in the new products their trying to
unveil. Going back to what originally made them successful might be the key for them moving
forward.
I think they have a great opportunity to strike right now and take back some of the market share
for sport clothing they have lost over the last couple years with the recent controversy that Nike
has had with the Collin Kaepernick issues. What Under Armour is great at is really connecting
with their home country people. The Freedom collection means a lot to a lot of people and having
that connection increases their loyalty to the company. They can improve by focusing more on
their woman products and getting a more “global” market. They don’t have a global presence and
establishing one could be very beneficial to them. The current economic state of Under Armour
has a great impact on what they can do to improve their profits. They need to capitalize on the
MapMyRun investment they made and then focus on how they can improve their global presence.
References:
In APA format, list each reference you used (at least five). Each reference in this section should
have a corresponding “short form” citation in the STEEPLE section or the Conclusions section.
Trites, D. (2017, March 15). Under Armour Transforms into World's Largest Digital Fitness
Brand. Retrieved from https://www.forbes.com/sites/sap/2017/03/15/under-armour-
transforms-into-worlds-largest-digital-fitness-brand/#6b15f495331e
Kobayashi-Solomon, E. (2017). Armour and Company https://seekingalpha.com/article/
4042765-armour-still-quality-company

8. ! Page8
Safdar, K. (2018, November 05). Under Armour's #MeToo Moment: No More Strip Clubs on
Company Dime. Retrieved from https://www.wsj.com/articles/under-armours-metoo-
moment-no-more-strip-clubs-on-company-dime-1541450209
Kell, J. (2017, February 9). Under Armour Wants to Have It Both Ways. Retrieved February
17, 2019, from http://fortune.com/2017/02/09/under-armour-trump-kevin-plank/
George-Parkin, H. (2018, July 25). Under Armour Investors Sue Execs Over Misleading
Statements. Retrieved from https://footwearnews.com/2018/business/news/under-
armour-lawsuit-investors-sports-authority-1202636249/
Chan, T., & Chan, T. (2018, November 12). On Veterans Day, the Rock Teams Up With
Under Armour to Give Back. Retrieved from https://variety.com/2018/biz/news/the-
rock-under-armour-collection-1203026218/
Schultz, E., Pasquarelli., A., Schultz, E., Schultz, E., & Pasquarelli, A. (2018, September 04).
Assessing the fallout -- good and bad -- from Nike's Kaepernick ad. Retrieved from https://
adage.com/article/cmo-strategy/assessing-fallout-good-bad-nike-s-kaepernick-ad/314809/