Under Armour strategic report Essay

9943 Words Mar 28th, 2014 40 Pages
Under Armour- Executive Analysis.
Tom Rhoads
BUS 450 Strategic Management
Douglas Helmer
Warner Pacific College
August 5, 2012

The following analysis consists of forward –looking statements concerning: 1)Economic conditions 2)Cultural, Social Demographic Issues 3) Political and Legal issues 4)Geographical and Environmental issues, all which include implications for strategy development for Under Armour. These statements relate to expectations, beliefs, anticipated events and future trends, and are not necessarily based on historical facts, but are conditions and issues
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345) All of these factors have a major impact on global business, therefore it is essential that UA understands this foreign exchange risk. The majority of economic theories of exchange rate movements for any country, point to three factors: 1) price inflation 2) local interest rates, and 3) market psychology. “The law of one price states that in competitive markets free of transportation costs and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency.” (Hill, 2007, p. 345)
Cultural and Social Issues
The UA target market up to this point has been the male sports “identity” population between the ages of 15-31, mostly consisting of the Gen Y demographic segment. Because the Gen Y segment is the second largest segment next to the boomers (85 million strong), future growth looks optimistic, particularly because UA is also doing well with the Gen Z group, who will be even more likely to carry brand loyalty into their 20’s and beyond. UA has recently been active in reaching out to women and girl athletes in the same demographic age sets. Even though the Gen Y spending only makes up 4% of a typical household spending, this buying group tends to be more tech savvy, and tend to spend on highly “image” related products. (Athletes buy athletic gear and clothing, etc) Currently UA has a positive image here in the U.S., due to a strong brand identification of

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