BUS assignment

IFE Matrix

Total= 2.18

Marketing Strategies (4P’s)

External Assessment

Key Industry

Under Armour is known for their breathable technology in their products to wick away the moisture, keeping athletes, cool, dry, and light. The downside to this trend is that this type of technology does not have a patent, so any company can copy this very same technology, and for cheaper.

EFE MATRIX

Total= 1.68

EFE Matrix

By increasing the female market in Under Armour it opens the door to so many more opportunities. Women want to feel good about them selves while they are working out and look good while doing it. It may not be just about the technology in their shirts, but it’s about style. But most of your customers do shop for quality and not the price, because they want a product to hold up to their lifestyles as they push the limits they want something that’s going to uphold with them.

When more people start to become more health conscious and start watching what they eat and going to the gym, they want to better them selves. When they do this they begin to look at other athletes that they may have idolized their life or even a good friend. And if that athlete or good friend is wearing an Under Armour product, they want to as well. But a downfall is that more than two-thirds (68.8%) of adults in the United States are obese. That’s a lot of people! By having that large number, these people are more than likely not wearing the product or unable to.

SO Strategies

By having athlete endorsements they can use that to take advantage to expand markets toward feminine population/women’s campaigns.

WO Strategies

By having the opportunity to expand on the athletic footwear it will help with the weakness of having a small line.

ST Strategies

By having a unique technology in their products they can use that as a leverage to compete with the bigger competition.

WT Strategies

By developing a product that could standout from all others and the competitions products, Under Armour could rise above them.

Strategic Options

Recommendations

My recommendation includes increasing research and development, expanding their products into international markets, get patents on their products, focus on differentiation strategy, developing new product line to appeal to more consumers, shifting their strategy from a focused niche to more of a brad segment, and diversifying their product to cater for none athletes. Mindful of the degree of competition that exists in the industry, Under Armour as a matter of urgency needs to focus on expanding Under Armour’s presence in the International Market and increase research and development in order to compete in the long run with its competitors.

UPDATE

“The Company had previously anticipated 2015 net revenues of approximately $3.84 billion, representing growth of 25% over 2014, and 2015 operating income in the range of $405 million to $408 million, representing growth of 14% to 15% over 2014. Based on current visibility, the Company expects 2015 net revenues of approximately $3.91 billion, representing growth of 27% over 2014 and 2015 operating income of approximately $408 million, representing growth of 15% over 2014. The 2015 guidance continues to reflect the net dilutive impact from the Connected Fitness acquisitions, as well as the impact of the strong dollar negatively affecting our operating margin within our international businesses.”

1