Under Armour Case Study

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- The three main issues that Under Armour needs to address are whether they should continue to outsource their manufacturing, how to expand globally, and how to continue being the innovative leader in the industry.

- I would recommend that Under Armour continue to outsource their manufacturing process in the near future. Going through a process of backward vertical integration at this time would be very costly and something they can not afford right now due to decreasing free cash flow from 2014 to 2015 (2.55% to -8.66%). Also, outsourcing the manufacturing process seems to be the industry trend and seems to work for the firms who use it. However, through R&D, if they could find a cost-efficient way to go through a backward vertical integration process that would lead to lower manufacturing costs, it may be something to consider. As far as global expansion, I recommend that UA continue to go forth with their plan to penetrate the different markets they have in sight. This is perhaps the most important step to competing with Nike and Adidas, as both competitors do well in foreign markets. Lastly, I would recommend that UA continue to push the envelope in being the most innovative sports apparel firm in the market. Continuing to have their R&D department as a major competitive advantage will lead to them gaining more of the market share in not only North America, but globally, as well.

Works Cited

"Nike Inc B." Growth, Profitability, and Financial Ratios for Nike Inc B (NKE) from Morningstar.com. N.p., n.d. Web. 22 Feb. 2017.

"Under Armour, Inc. - Financial History." Under Armour, Inc. - Financial History. N.p., n.d. Web. 22 Feb. 2017.

"Under Armour Inc C." Growth, Profitability, and Financial Ratios for Under Armour Inc C (UA) from Morningstar.com. N.p., n.d. Web. 22 Feb. 2017.

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