Under Armor Apparel Company
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History, Development and Growth of Under Armor Apparel Company’s
Under Armor, a sport apparel company founded about twenty years ago originally as KP concocted athlete performance gear for comfort and convenience in the course of practice. The company received an establishment in the market share in the United States in 2011, six years after becoming a public company, competing with the leading market players. Kevin Plankin 1996, basing on his experience as a sportsman, came up with tight-fitting, moisture wicking, polyester-blend shirts that are comfortable and cooler in extraneous activities. He stated selling the products individually and made collaborations to promote the products and boost sales. The company product line and sales have since expanded slotting technology advances and designs.
Internal strengths and weaknesses
The company had exceptional growth record since its establishment. Its brand development takes the shortest time that is relatively powerful and incredibly authentic as compared to other brands. Its development of new brands with the integration of technological advancements is the driving force behind its success. The company has the capacity for growth with reasonable cost quality products with continued innovativeness. The company does not produce its own products and does not have safety garments like some of the competitors. Some of its goods are of high cost and much dependent on the North American market. Its consideration on male gears and narrow market focus is also a weakness.
Analysis of the external environment
The external environment is important for the company expansion and competitiveness. With the preference of the company products, the company has a chance to expand its market base and set up own production unit due to the increased demand of sports gear. There are technology advancements and changing customer preference that the company needs to consider.
SWOT analysis of Under Armor
The company boasts of unique technology of making under garments and sport gears that have made its brand recognized fast. Improved community relations and eco-friendly operations coupled with innovative culture upholds client loyalty and earn products endorsement.
Its small area concentration and the small line of garments is a weakness. Stiff rivalry in the sector and lack top distributors and patent to its brands give advantage to competitors. Lack of online presence, higher product price and concentration on male gender are major weaknesses.
Its opportunityis to expand markets and focus globally. Lowering price and adjusting on weaknesses, establishing online presence and finding major distributor is another opportunity. It can establish to produce its own products and have patent to expand benefits.
The threats faced by the company include stiff competition from other established companies as Nike, and the possibility of losing clients to less expensive competitors. Their products can easily get substitutes due to lack of patent hurting its industry and market share.
Corporate-Level Strategy
The mission of the company is always to make athletes better with top differentiated quality products. It has constituted accountability and outsource for products from third parties and distributing them through its retail stores. It has developed collaboration and partnership with teams and people and the commitment to innovation could boost its performance.
Business-level strategy
The company lately strives to counter existence of competitors by expanding its market and ensure the presence of their products in the outlets and stores to increase sales. They employ innovativeness to produce top quality products for the market to differentiate them and remain in the lead in terms of innovation continually to achieve competitive advantage.
Recommendations
Under Armor need to focus on establishing on how to produce its own products or identify a sole producer who appreciates its technologies. A key distributor is essential, as it will ensure the cut in price while at the same time spinning sales. The focus for expanding globally and targeting all gender and continual online presence is also essential in promoting the firm.
Actions for Successful Changes
This is equally the same as the recommendations and can be emulated in this case.
Reference
Thompson, A., Strickland, A., & Gamble, J. (2014). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases (19th ed.). New York, NY: McGraw Hill.