Under Armour Economic Analysis Essay

3590 Words Aug 16th, 2015 15 Pages
UNDER ARMOUR
Ecomonic Analysis
Wisniewski, Angela

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

Executive Summary

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
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When Under Armour first began selling products, they only sold to men and primarily for football. The company has since grown its product line, but still has a long way to go to gain female and children’s sales of their products versus men’s. Additionally, Under Armour’s main market lies in North America where their main competitors are globally recognized.

Opportunities
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.

Threats
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

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