Assignment%20#3 under armour internal and swot analysis

Assignment%20#3 under armour internal and swot analysis

• 1.
  Under Armour:Internal Analysis,SWOT Analysis, Competitive Position, and Conclusions/RecommendationsBrian TeufelMGT 490-004Assignment #3Professor McDermottMarch 17, 2011
• 2.
  Under Armour’s Performance•Under Armour’s PA sales and net income have increased every year since 2006.
• 3.
  Under Armour’s Performance•On average, around 80% of Under Armour’s net income comes from PA.
• 4.
  Change in Salesby Product• All $ amounts are in millions• Footwear sales increased every year from 2006-2009 but decreased by 7% in 2010.• PA and accessories sales have increased every year; PA had a huge increase of 24% from 2009 to 2010.
• 5.
  Change in Distributionof Sales by Region • International sales have increased every year since 2008 but UA is still heavily reliable on North America for about 90% of their total sales.
• 6.
  Under Armour’s Assets
• 7.
  Employee Distribution# ofEmployees, % of Total Employees• Under Armour has a total of 3,900 employees.• Factory House and Specialty Stores employees are increasing rapidly because UA is opening more branded stores.• Almost ¼ of UA’s employees are devoted to research and development.
• 8.
  SWOT Analysis –Strengths and Weaknesses
• 9.
  SWOT Analysis –Opportunities and Threats
• 10.
  SWOT Analysis -Summary
• 11.
  Generic StrategyCompetitive AdvantageLowCostDifferentiationBroadTarget Competitive ScopeNarrow Target• UA is moving from niche to mainstream in an attempt to compete with Nike and Adidas on other product lines (footwear and accessories) other than performance apparel.
• 12.
  Product BCG MatrixMarketShareHighLow•Performance Apparel•FootwearHigh•AccessoriesMarket GrowthLow
• 13.
  Value Chain• UAcreates value for the consumers and gains its competitive advantage against the competition primarily through technology development. • Innovation is what made UA what it is today, and Innovation is the key for future success.
• 14.
  Value Chain Analysis
• 15.
  Grand Strategy
• 16.
  Ansoff’s Matrix
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  Ansoff’s Matrix (cont.)1= Lowest Level of Effort4 = Highest Level of EffortMarket PenetrationProduct DevelopmentMarket DevelopmentDiversification• UA is focused on all of these strategies but they must prioritize according to what will achieve them the greatest amount of success and what will put them in the best position to grow in the future.
• 18.
  Sponsorships/EndorsementsDomestic Sponsorships/EndorsementsInternational Sponsorships/Endorsements
• 19.
  PA sales andoverall sales have increased every year since Under Armour has been founded.PA sales account for more than 80% of total sales.International sales account for less than 10% of sales but they have been increasing slightly since 2008.Under Armour is attempting to make a push into international and emerging markets.The two main strengths for Under Armour are its core competence in innovation and its brand equity.UA is moving from niche to mainstream in an attempt to compete with Nike and Adidas on other product lines (footwear and accessories) other than performance apparel. Conclusions
• 20.
  Under Armour’s primaryfocus should be to increase their U.S. market share in other products such as footwear and accessories while maintaining market leadership in PA.Under Armour should move into international and emerging markets with caution to assure they do not expand too quickly.Under Armour needs to continue to provide value to consumers through innovation and research and development.Under Armour needs to integrate their marketing plan and make sure than all sponsorships and endorsements contribute to the value of the brand.Recommendations