Under Armour Case Analysis Essay

6092 Words Jun 17th, 2014 25 Pages
Table of Contents
Executive summary
1. Introduction ………………………………………………………………………………………3
2. Summary of the Current Situation………………………………………………….……4
2.1 Current financial Performance………………………………………………………….…5
3. External Analysis……………..…………………………………………………………………..7
3.1 Driving Force for Change……………….……………………………………………………7
3.2 Porters Five Forces Model……………………………………………………………………8
3.3 Key Success Factors………………………………………………………………………….11
3.4 Summary of External Analysis…………………………….…………………………………13
4. Internal Analysis………………………...…………………...……………………………...……13
4.1 Resources and Competences………………………………………….………………………14
4.2 Value Chain Analysis……………………….………………………………………………15
4.3 Comparison of Strength to Rivals…………………………………………..……………….16
4.4
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These strategies have giving Under Armour a sustainable competitive advantage over it competitors. Thus giving the company a priority to expand into international markets.
Current Financial Performance

Under Armour has proven itself as one of the powerhouse in the sport apparel industry in North America. The overall performance of the company in recent year shows a net revenue increase of 24.6% from 2011- 2012 giving it a dollars increase of $362.2 million. It’s net income increase of $32.1 million dollars. Analysis on its financial statement (see Appendix Table 1 and Appendix 2 below) shows that the company has an average growth rate of more than 25 percent in the last 10 years. A significant increase in growth of revenue over the past years hit its maximum at 38.4%. This was from 2010 to 2011 with a dollar amount increase of 65m as a result of introducing new products such as hats and bags that decreased license revenues on the one hand and increased accessories revenues on the other hand in 2011. In this same year the net sales increased by 411.5M or 40.2% from the previous year due partially to a 62.2% increase in direct consumer sales. At the same time, there was a significant decreased in License revenues by 7.1% or 2.8M. With the current strategy at hand, Under Armour was able to beat the other competitors in terms of its financial performance.
Although the company was able to

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