Under Armour Economic Analysis Essay
Table Of Contents
1. Executive Summary 3 2. Company History and Analysis 3 a. Strengths 4 b. Weaknesses 4 c. Opportunities 5 d. Threats 5 3. Microeconomic Analysis 5 4. Macroeconomic Analysis 7 5. Market Structure- Monopolistic Competition 8 e. Consumer Demand 9 6. Market Competition 9 7. Managerial Recommendations 11 8. Conclusion 13 9. Works Cited 14
Under Armour is in the Textile- Apparel Clothing industry, in the consumer goods sector. The market has been driven by economic recovery, new product offerings and a …show more content…
Under Armour has a range of opportunities that include expanding its footware line, marketing to women and children, open more UA stores (versus selling in sporting goods stores), room for global expansion, and establishing partnerships with its manufacturers to place patents on the customer’s products to protect its brand image.
Like any company, Under Armour faces several threats in the highly competitive sporting goods industry. Some of these include increased financial burdens, substitute products becoming available, major industry competition, and lack of protection of intellectual property.
Microeconomic Analysis of Company Under Armour (UA) falls within this sports apparel industry as a market leader alongside companies like Nike, Adidas, or Reebok. Due to stiff competition to firms like these, UA must tackle high product costs. While many countries opt for low cost products, UA’s tack is to ensure high quality with the old motto, “you get what you pay for”. Thus, the product line offered by the company can be