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swot analysis of under armour case study

swot analysis of under armour case study

Under Armour SWOT and PESTLE Analysis

Company profile - under armour, business sector : sports goods, operating geography : usa, north america, about under armour :, under armour revenue :, ownership / major shareholders :, competitive analysis of under armour.

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swot analysis of under armour case study

Detailed SWOT Analysis of Under Armour

1. Broad product portfolio across apparel and sportswear: Initially, Under Armour offered a variety of products in clothing product line, but currently they offer a wide range of products across apparel, footwear, accessories, etc. In 2019, sales of apparel, footwear and accessories represented 66%, 21% and 8% of net revenues, respectively. Licensing arrangements and revenue from our Connected Fitness business represented the remaining 5% of net revenues. The broad spectrum of products minimizes the risks of being dependent on a particular product category. Third-party companies in collaboration with product development teams produce these products. This methodology helps them to direct their efforts towards product development, fit, climate and end use.

2. Multiple distribution networks: Under Armour sells its product through various distribution networks. The company primarily uses wholesale channels like national and regional sporting goods chains, independent and specialty retailers, department store chains, institutional athletic departments, leagues and teams to generate sales. Apart from this, the company sells its products directly to customers through its brand and factory house outlets and also via its e-commerce websites. In FY2019, revenue from wholesale, direct to consumer, licensing and Connected Fitness channels represented 60%, 34%, 3% and 3% of net revenues, respectively. In countries where Under Armour does not have operations, they sell their products via licensing. The multiple distribution networks help the company to expand its market presence.

3. Strong revenue growth over the years: Under Armour has reported strong growth and impressive investor returns over the past few years. Its revenues have increased more than twice from $2.3 billion to $5.3 billion in just a span of 6 years. To continue the growth, Under Armour is planning to restructure the company around category management to streamline the operations. This integrated global model will lead to shared accountability between categories, regions and functions. Revenue for FY2020 is going to be impacted by the Covid-19 pandemic impact and Under Armour is assessing a potential 2020 restructuring initiative to rebalance its cost base to further improve profitability.

4. Marketing and promotion strategy allowing exposure to consumers: Under Armour mainly promotes and markets its products by making them accessible to high-performing athletes and teams at the professional level as well as at the high school and collegiate level. the company initiates outfitting agreements, professional, club, and collegiate sponsorship, individual athlete and influencer agreements which enables the company to sell directly to team equipment managers and individual athletes. Under Armour products are thus seen directly being used high-performing athletes on the fields by other consumers through medium like the internet, television, magazines and live at sporting events. This lends Under Armour products an on-field authenticity unachievable through any advertising campaign. The company is also the official supplier of footwear and gloves to the NFL. A partnership with NBA further ensures that the company is able to use NBA athletes in game uniforms while promoting products, including basketball footwear.

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Opportunity

Detailed pestle analysis of under armour, technological.

1. Tax laws in the countries of operation: Every company must abide by the laws of the country in which they operate otherwise they may face legal prosecutions or penalties. Under Armour has never faced any legal prosecutions over the years. Most of the operations of Under Armour have been in North America. As the company plans to expand its operations in other countries, they need to prepare themselves to address potential legal problems. These legal issues may be related to anti-trust law, discrimination law, consumer protection and e-commerce law, intellectual property laws, employment laws, etc.

2. Federal investigation regarding accounting practices: Public companies are bound by certain laws with regard to publication of revenues, including recognizing them at the proper time. Under Armour had come under the scanner of a federal investigation in 2019 due to some of its accounting practices. The company was investigated under the charges of suspected manipulation of sales numbers to make them look stronger by the U.S. Securities and Exchange Commission and the Justice Department.

Environmental

Major competitors :.

  • Outdoor Voices
  • Lulemon Athletica
  • New Balance
  • Adidas Group

Major Brands :

  • Under Armour
  • Speedform shoe
  • ColdGear Infrared
  • Under Armour Scent Control

Key Business Segments / Diversification :

Recent acquisition / mergers / alliance / joint ventures / divestitures :, why buy this report, table of contents, delivery and format, why choose us.

swot analysis of under armour case study

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References used in under armour swot & pestle analysis report.

1. Under Armour Annual Report 2018 - https://about.underarmour.com/sites/default/files/2019-03/Under%20Armour%202018%20Annual%20Report.pdf

2. How Rising Labor Costs in China Could Change Everything - https://www.thestreet.com/story/13571654/1/how-rising-labor-costs-in-china-could-change-everything.html

3. Under Armour Wants to Have It Both Ways - https://fortune.com/2017/02/09/under-armour-trump-kevin-plank/

4. Under Armour CEO adds his name to those leaving Trump's manufacturing council - https://www.cnbc.com/2017/08/14/under-armour-ceo-kevin-plank-says-he-is-leaving-trumps-manufacturing-council.html

5. Closing The Loop On Sustainable Fashion - https://www.forbes.com/sites/ashoka/2017/05/08/closing-the-loop-on-sustainable-fashion/#56e0a5192f3fl

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Under Armour SWOT and PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2024). Under Armour SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/under-armour/ [Accessed 23 Nov, 2024].

In-text: (SWOT & PESTLE.com, 2024)

Copyrights and Disclaimer

Under Armour SWOT and PESTLE analysis has been conducted by Siddhesh Suhas Salkar and reviewed by senior analysts from Barakaat Consulting - an Ezzi IT and Business Consulting venture.

Copyright of Under Armour SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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