Under Armour: Working to Stay on Top of Its Game Lulu M. Mero Webster University Abstract This paper explores the case study found in the Strategic Management: Competitiveness & Globalization (10th ed) under the authors of the book, Michael A. Hitt, R. Duane Ireland, and Robert E. Hoskisson. The title of the case is “Under Armour: Working to stay on Top of Its Game” which analyzes fully the portfolio of the company. Under Armour is an apparel firm that faces some competition and it constantly has to revise its business strategy to stay on top of the market. This case study discloses the company’s history, growth, product and sales profile, major competitors, management, marketing, business strategy, and strategic challenges. …show more content…
The technique used by the company, moisture-wicking fabrics is designed to accommodate different climates. After beginning to use high innovative textile for the sports apparel, the company observed an increase in sells which made it well known to sell globally from the North American market. Presently, Under Armour targets a wide range of customers with a business strategy to take over the sportswear apparel market. The distribution channel of Under Armour products is via wholesales and retails. Despite the fact that Under Armour is quite a small firm in relation to its major competitors, Nike, Adidas, Columbia Sportswear, and SportHill; the company has the aura of products being loved by athletes at all sporting levels. The main reason for this preference from various customers is because the style and designs are very technological, modern and active. Therefore, the main argument of this case is to analyze how the company’s business strategy can help to maintain the competitive grounds with other high end sporting …show more content…
Value Chain Analysis is crucial tool, because it can be applied to all primary and support activities. In primary activities the key for the company is to allocate funds accordingly to the inbound logistic which works in implementing total quality management, to operations with activities such as automation for fast production of athlete apparels, to outbound logistics by having reliable distributor network, to marketing and sales through developing promotion budget, developing sales budget, sales forecasting, and price positioning. In the support activities, I would recommend the company to invest more in Technology Development, and Human Resource Management. Under Armour could increase its innovative drive by creating new products in order to stay on top of the game. The company could also invest on human resource by recruiting high caliber workers, training, and have attractive compensating employees to lower turnover and talents, which could be taken by its
It shows that management is willing to invest in its employees as well as invest in the
The sporting goods industry has a long history from the mid- 1800s until the early 1980s. Since then public ownership led to the expansion of footwear and apparel products in an exploding marketplace. This allowed the top 20 firms to have sales of at least $1 billion. (Lipsey, 2006) After 1980s, sports equipment manufacturing is estimated above a $70 billion industry and is continuously growing worldwide (statista.com, 2014). The production of sports equipment is one of the biggest and most profitable industries nowadays and it gathers all the attention of big brands with powerful marketing techniques which compete in global scale.
Under Armour is known as an advanced sportswear and casual apparel company and the original innovator of performance apparel. They are mainly focused in a market directed towards the general athletic community or individuals with a more active lifestyle. Under Armour is different from other competitors because they offer a more flamboyant approach to supplying athletic apparel. They are unique from their top competitors because they have a high performance line of athletic clothing that absorbs moisture from the away from the athlete 's body to enhance their performance in hot or cold conditions. Under Armour has numerous strengths that are assisting them in the rise to the top.
Nike succeeded in driving teenagers who are into sports to go to Gear up e-commerce hub at Nike.com. In this analysis; there were many things that I learned while completing it. Commercial is like a mountain we only see the small tip above the ground. It always has a deeper root. While struggling in my analysis journey, I also learned to use all my tools to descript the codes and interpreter the hidden meaning of the creator work.
Over the past 47 years, Prince Sports have validated themselves in this competitive niche market through effective innovation and design. From brands such as Prince (tennis,squash and badminton) to Ektelon (racquetball) and Viking (platform/paddle tennis), Prince Sports have had a tremendous impact on the game of tennis and have introduced a new face, craftsmanship, and design to tennis. Even with copious competitive advantages, they continue to hit obstacles which calls into the question:how can Prince Sports continue to have a competitive edge and hold a large market share? In this short paper, I will discuss what strategies have been implemented over the past few decades that have allowed themselves to be one of the leading industries.
Highly qualified employees + + + + Sustainable competitive
The growth of the omnichannel shopping experience will subtract the overall impact the foot traffic in JCPenney’s bricks-and-mortar stores has on performance. Omnichannel customer shops 2.5 times more frequently over the course of a year than a traditional customer does. JCPenney will roll out several initiatives to capture that greater spending. They found out that a buy-online/ship to store customer would purchase additional merchandise 20% of the time when visiting the store. The retailer view the omnichannel market as an $800 million sales growth opportunity through 2017.
This means from 2016 to 2017, there was a decrease in profit. This is common in companies in their mature stage, which Johnson & Johnson is. Value Chain Value chain analysis is a tool used for the examination of the strategically relevant activities of a business in order to understand the behavior of costs and the potential sources of differentiation. Johnson & Johnson takes every opportunity to maximize the positive impacts and minimize the risks along its value chain.
Introduction and Company Background The report is about the strategic appraisal of Louis Vuitton which is mainly a French based fashion house and founded by Louis Vuitton in 1854. The report will incorporate a brief background of the company as to its core business emulated by the industry it operates in. The background will further proceed with its geographical markets, the products and services being offered, their makret segments, their imperative stakeholders and what generic strategy is being followed by them.
China has experienced rapid economic growth and become one of the biggest Big Emerging Markets (BEMs) as of 2013.(Garten J 1997) Since the 2008 Beijing Olympic Games, sport has become a part of lifestyle and fashion attitudes in China, which is making a booming market for sportswear as well as clothing and footwear for outdoor activities (ITC 2012). This research project would mainly benefit Arsenal Football club but it could also help competitors and other companies aiming to enter or grow in the Chinese sports merchandise
2.0 Competitor Analysis The industry that Under Armour is involved with is extremely competitive, with competing against big names such as Nike or Adidas. Although it’s hard at the beginning, but customers want to have the highest quality apparel therefore they turn to Under Armour. Under Armour stays in the competition by having high quality products, and also by signing endorsements deals with major athletes (Owusu, 2017). By having major athletes represent Under Armour, means the company will be bringing in "big money" because they will bring up the brand’s popularity. The major competitors in this industry are of course inclusive of big names such as Adidas, Nike, Dick’s Sporting Goods and Puma.
This would attract a pool of workers of the highest caliber, thus leading to more value induced into the company. # Successful communication of perceived strengths of the product: Integrated marketing strategy- This has
The value chain analysis indicates the firms that strive to create superior products or services through focused differentiation strategy. To ensure the activities are tailor to the strategy Value Chain is used. How each activity generates value and linked to the strategy in UFS? Table 4: Value Chain Analysis Primary Activities
A value chain is a tool for recognizing the business activities that adds value and competitive advantage to an organization [8][21]. When a company wants to develop its competitiveness and attain its goals, it must first carry out a series of test in turning value to finished goods, afterwards transform its finished goods to the final product [1][26]. This series of steps is known as value chain [26]. The value chain is an essential tool for strategic management; it allows a firm to position a product or service in the market [1]. In general value chain targets three objectives [1] • Value creation • Cost decrease • Improving the customer service
Resource based view is the tool that is used in order to evaluate the resources that are important for the organisation to make their performance effective. It is regarded as a significant approach that is used by the organisation towards attainment of competitive advantage. The aim of this paper is to evaluate the resource based view literature and then applying the knowledge on the evaluation of a case study organisation. The selected organisation is Zara Fast Fashion, which is analysed with the help of use of RBV towards achievement of sustainable competitive advantage. The theoretical concepts of the resource-based view is analysed and applied on Zara as a real world example.