Under Armour Case Analysis
Autor: Mikki • December 13, 2017 • 1,845 Words (8 Pages) • 660 Views
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Under Armour employs many different strategies to achieve all of their goals. Their growth strategy is aimed towards taking market share away from the likes of Nike, Adidas, etc. What they due within their growth strategy is broadening the company’s product offerings to all target customers including men, women and youth. They also even target additional consumer segments. Another thing that they are trying to do is compete with Nike when it comes to footwear. They also try to maximize their reach within retail stores throughout the country when it comes to securing additional distribution. They are even growing internationally by expanding the sale of all of their products in foreign countries. While doing this they are always trying to grow brand awareness and strengthening brand loyalty domestically as well as abroad.
It is because of those aforementioned strategies that I believe Under Armour utilizes a broad differentiation strategy in terms of the strategies we learned about in Chapter 5. Why I believe this is because they are always seeking to differentiate the products that they offer from the competition in ways that do appeal to their consumers. One of the reasons I believe this to be true is due to the fact that they were the first to offer this sort of product and then had 3 lines of performance clothing that were all meant to do different things such as the Heat Gear, the Cold Gear and the All Season Gear. Another reason I believe this to be true is due to the fact that their marketing strategy has been more unique for a longer period of time than their competitors. Moreover, they are outfitting many collegiate teams and are acquiring more, including our Bearcats, to try and compete with Nike and Adidas at that level.
5). What is impressive about Under Armour’s financial performance during the 2006-2011 period (as shown in Exhibit 1)?
Well exhibit 1 shows financial performance from 2008-2012 first and foremost. Secondly it is truly promising that Under Armour is continually growing in all areas of their business. Also the earnings per share have gone up consistently since 2008, meaning that the investors are happy.
Another thing that is impressive is that you can always expect high revenues for UA in the 3rd quarter of each year. I would assume that this is due to the fact that they are well known for their cold gear and this is when people tend to stock up on those types of clothing.
6). How does Under Armour’s competitive strength compare with that of Nike and The adidas Group? Perform a weighted competitive strength assessment using the methodology presented in Table 4.3 in Chapter 4 to support your answer. Based on your assessment and calculations, does Under Armour have a net competitive advantage or disadvantage in competing against Nike and The adidas Group?
Under Armour
Nike
Adidas
Importance
Strength Rating
Score
Strength Rating
Score
Strength Rating
Score
KSF/Strength Measure
0
0
0
Quality/Product Performance
0.15
8
1.2
7.5
1.125
5
0.75
Reputation/Image
0.1
7
0.7
8
0.8
7
0.7
Technological Skills
0.15
7.5
1.125
7.5
1.125
6.5
0.975
New Product Innovation
0.15
8
1.2
7
1.05
5
0.75
Financial Resources
0.15
8
1.2
9
1.35
8.5
1.275
Customer Service
0.1
6
0.6
7
0.7
5
0.5
Distribution
0.1
4
0.4
5
0.5
6
0.6
Relative Cost Position
0.1
5
0.5
4
0.4
8
0.8
0
0
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