Under Armour Essay

1103 Words Apr 16th, 2013 5 Pages
IBM 4711 International Strategic Management

Under Armour: Working to Stay on Top of Its Game

Perform a STEEP analysis to understand the general environment facing Under Armour. How will the firm be affected by external factors?

Ans. Each factor under STEEP analysis giving Under Armour more information about how company should adapt itself, in order to be survived in the market. Let’s see the effects of these external factors to the company’s strategies each by each.

Social factor
Demographics

Gender : affects the designs for both male and female customers (e.g. apparel for women)

Age Structure : affects design, sizes, and features for different age distribution(e.g. youth)
Lifestyles

Types of sports : affects
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While Core competencies are considered to be their “Product innovation and differentiation”.

Create a SWOT analysis to understand Under Armour’s strengths and weaknesses. Does Under Armour have a sustainable competitive advantage? Is so, what is the source? What about Under Armour’s evolution and current business strategy may pose problems going forward?

Ans. For SWOT analysis,

Strengths
- Efficient operation & distribution network

- Net revenue increase continuously year by year

- Unique features and product innovation

- Effective marketing communication

- Strong term management (long relationship)

- Rapid respond customers’ needs

“Of course we make that!”

- Good management of unique team driven style

- Strong and Outstanding in apparel product than

competitors

- Be able to expand business by using licensing

(because no need to waste the recourses to

operate Miscellaneous product by itself)

- Good experience CEO for international

division

- Take lesser time to make loyal customer
Weaknesses
Heavy reliance on suppliers and manufacturers

Weak financial support
No intellectual property right in technology,

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