| Name | Under Armour Inc. |
| Industry | Manufactures sports apparel |
| Founded | 1996 |
| Headquarters | Baltimore, Maryland, United States |
| CEO | Patrik Frisk |
| Revenue | $4.474 billion |
| Profit (Loss) | $ (549.17) million |
| Competitors | Reebok, ASICS, New Balance, PUMA, Adidas and Nike |
Founded in 1996, Under Armour Inc. is a company that trades in the manufacturing, marketing, and retailing of sports apparel, accessories, and footwear. The segments that allow the company to operate are; North America, Asia-Pacific, EMEA, Connected Fitness and Latin America. Connected Fitness is the segment that gives the customers of Under Armour to sign up digitally for fitness-related subscriptions and advertises the products of Under Armour through applications such as Endomondo, MapMyFitness and MyFitnessPal. The company’s headquarters are located in Baltimore, Maryland, United States, and the company’s current CEO is Patrik Frisk (Reuters, 2021).
Under Armour Strengths 2021:
- Distribution Networks.
The company has not restricted itself to physical, brick and mortar stores but has included multiple retailing channels and distributing the products. Under Armour functions through multiple distribution networks that are both direct and indirect, helping the company make its products accessible to customers through different channels. These include advertising and retailing products through E-commerce websites, retail stores, and a retailing mobile phone application. With the help of these channels, the company has experienced a high number of revenues in the current year (Jones, 2021). Such operational modifications have helped the brand grow globally and achieve more customers. - Digital Apps.
Under Armour has tried its level best to stay up with e-commerce and advance digital trends of the industry, which adds to the company’s strength.The company has adapted its young workforce and operations to work on fitness-related applications such as Endomondo, MapMyFitness and MyFitnessPal (nutritional app) to sell and advertise products. This has enabled the company to target more customers through cost-efficient methods and maintain product offerings accessible to a large market.This is quite a strategic step carried out by the brand as times are evolving and people are getting dependent on digital applications, which helps the brand attract more customers.
- CSR Activities.
The brand has engaged in multiple CSR related activities since its beginning. The most popular one was the Under Armour’s Power in Pink campaign, which aimed to educate women about the importance of exercise in fighting against breast cancer and encourage them to carry out a balanced lifestyle. This campaign also showcased survivors and also joined hands with non-profit organizations (News Room, 2011). Another campaign that gained high popularity was the Under Armour freedom campaign, which was designed to show the company’s support to the military and the public safety officials. This campaign was also aimed to provide paramedics, firefighters, military officials, police officers, etc., with monetary donations and products and volunteers (PRweb, 2010). Campaigns like these make a mark for a long time and help strengthen brand image in the minds of consumers. - Using Famous Athletes as Marketing Strategies.
Under Armour has recently initiated a global ad campaign that tells famous athletes’ inspirational stories. The athletes featuring in this ad campaign include Michael Phelps, Steph Curry, Kelley O’ Hara and Tom Brady (Christie & Howland, 2020). This is quite a clever marketing tactic used by the brand as it will bring a lot of attention to the company. Further, it increases the potential customers for Under Armour as the people who support these athletes will also want to purchase from the brand.
Under Armour Weaknesses 2021:
- Limited International Market Presence.
One of the weaknesses of Under Armour is its limited presence in international markets. The company’s revenue is mostly generated by the North American segment, making it more dependent on this market (Forbes, 2017). This puts the company at a step back as its competitors, such as Nike and Reebok, expand worldwide. - Selling MyFitnessPal.
Under Armour has made the deal of selling MyFitnessPal, one of its profitable revenue streams, to Francisco Partners, an investment firm. The deal was made for $345 million, which is actually a massive loss for Under Armour as it bought MyFitnessPal for $475 million. Under Armour has also said that it will be selling Endomondo in the future as well (Etherington, 2020). This is quite an ill-advised step carried out by the company as it might reduce profits and reflect that the company is going through a vulnerable phase.
Under Armour Opportunities 2021:
- Expanding to China and Asian markets.
As recognized by Under Armour, China is a region that shows potential for the brand to grow. Expanding to China and the Asian markets could help the brand earn billions of dollars and mark its presence worldwide. By 2025 the Chinese market estimates about 5 trillion Yuan to this Industry (Forbes, 2017).
- Collaboration.
Under Armour has already had a successful collaboration with Kohls. Under Armour should consider more collaborations with retailers like J.C Penny, Macy’s and Dillard’s as this will help it enter more markets and generate more revenue. - Olympics and Paralympics.
Sporting events like Olympics and Paralympics, which have recently gained popularity, can also be an opportunity for Under Armour to collaborate. This can be done by supplying sporting accessories and apparel to the participants or sporting footwear to different championship events.
Under Armour Threats 2021:
- Competitors.
There is intense competition in this industry. For instance, Nike and Reebok have the most competition to Under Armour as they receive greater recognition in the international market and have similar products at lower prices. This is an evident threat to Under Armour as it puts the brand at the risk of becoming invisible in this market. - Digital Innovation.
Even though the company is engaged in e-commerce activities and has a number of applications under its name, the rapid increase of advanced technologies such as Augmented Reality and Virtual Reality can make the company operations obsolete. These digital technologies have been used by Nike and Adidas (Gartenberg, 2019), proving to be a severe threat to the revenues of Under Armour.
Under Armour SWOT Analysis Conclusion:
Drawing on the SWOT Analysis above, it can be concluded that Under Armour is a valuable sports apparel brand. The company has taken great marketing opportunities such as organizing multiple campaigns, tapping into the stories of athletes for brand growth and even adapting to fitness applications. These add to the brand’s strengths as they have helped Under Armour grow at a large scale and have proven to be extremely successful. However, the company faces a lack of market presence, limiting the brand to grow worldwide into growing markets that could bring loads of revenue. The company could expand to China and other Asian economies to gain more profits. This will strengthen the image of Under Armour and make it a more prominent brand globally whilst minimizing the risks from its threats.
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References:
- Christie, D., & Howland, D. (2020). Under Amour taps celebrity athletes for global ad campaign. Marketing Dive.
- Etherington, D. (2020). Under Amour to sell MyFitnessPal for $345 million, after acquiring it in 2015 for $475 million. Tech Crunch.
- Forbes. (2017). A Look at Under Amour’s International Presence. Forbes.
- Gartenberg, C. (2019). Nike’s New App Uses AR to Measure Your Feet to Sell You Sneakers That Fit. The Verge.
- Jones, R. (2021). Under Armour’s Q2 Revenue Increases 91% to US$1.4 billion. Sports Media.
- News Room. (2011). Under Armour’s 2011 “Power in Pink” She’s A Fighter® Campaign Celebrates Women’s Courageous Fight Against Breast Cancer. News Room.
- PRweb. (2010). Under Amour Launches UA Freedom Initiative in Celebration of Independence Day. PR Web.
- Reuters. (2021). About Under Amour Inc. Reuters.
