Under armour Strategy Report

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Under Armour: Market Share Analysis and Strategic Challenges in North America

Industry Context

Under armour is a sports apparel company that specializes in performance-based athletic wer, footwear, and accessories. The main target audience for Under Armour are athletes and fitness enthusiasts. The company focuses on innovation especially when it comes to compression technologies and this is what has contributed to Under Armours strong presence.

61% of Under Armour's revenue has been generated from North America (statista). This means that the North American market has been the prime revenue driver for Under Armour. In recent years the company has continued to struggle and sustain consistent growth, this led to the stagnation in recent years to Under Armour's market share. Sports apparel is a highly competitive market and has been historically dominated by Nike and Adidas. In recent years we have seen many brands specialize in one sector to tackle new trends in sports apparel and take a large market share and overshadow the other competitors. Increased competition from industry leaders like Nike and Adidas, coupled with shifting consumer preferences and the growing popularity of direct-to-consumer brands, has posed significant challenges. COVID-19 had negative impacts to all operations in the sports apparel industry, it hindered all of under armour's expansion efforts. Since then, Under Armour has not been able to regain momentum and get back on track

Market Share Trends (Before and After COVID-19)

To understand Under Armour’s market position, we compare three time periods:

1. 2015 (Pre COVID-19)

2. 2019 (During COVID-19)

3. 2023 (Post-COVID-19)

Key Competitors

Under Armour competes with global sportswear brands, including:

● Nike – Market leader with unparalleled brand recognition and high consumer loyalty (Statista).

● Adidas – Strong revenue growth and investment in sustainability (Statista). ● Puma – Balances performance and lifestyle-oriented products (Statista). ● New Balance – Niche market presence with a focus on quality footwear. ● Reebok – Targets the fitness and casual lifestyle segments.

Strategic Challenges

Under Armour’s decline is due to several factors:

1. Brand Positioning Issues - Efforts to shift toward a premium brand image alienated price-sensitive

consumers (WSJ). - Lacks a strong brand narrative compared to Nike’s performance focus and

Adidas’ lifestyle appeal. 2. Limited Product Innovation

- Lack of trend-driven product launches compared to Nike and Adidas. - Footwear sales remain weak, failing to compete with Nike, Adidas, and New

Balance in both performance and lifestyle categories. 3. Ineffective Marketing

- Campaigns have not resonated with target demographics. - Heavy reliance on wholesale partners like Dick’s Sporting Goods, leading to

inventory challenges. 4. Supply Chain Disruptions

- COVID-19 impacted inventory and production. - Heavy reliance on wholesale partners like Dick’s Sporting Goods, leading to

inventory challenges. - Competitors have better direct-to-consumer (DTC) strategies.

Research Plan

To address these challenges, the following methodologies will be used:

● SWOT Analysis – Evaluates strengths, weaknesses, opportunities, and threats. ● PESTEL Analysis – Assesses external market conditions. ● Porter’s Five Forces – Measures industry competitiveness. ● Financial Ratio Analysis – Analyzes revenue trends and profitability (Statista).

Data Sources

● Market Research Reports: Statista, Mintel, ORBIS. ● Financial Reports: Under Armour’s SEC filings. ● News Articles: WSJ, Business Insider, Reuters. ● Academic Papers: Research on brand positioning.

Time Plan (Gantt Chart Summary)

Task 16 Feb 17 Feb 19 Feb 20 Feb

Wait for feedba ck TBD TBD TBD TBD TBD

Understand Under armour

research under armour

research competitors

take notes and highlight key information

Necessary Research

Find appropriate websites for data

Use wbesites to gather data

Filter information and highlight key points

Plan report 1

create pie charts

Write the report

Finishing touches part 1

Add citations

Proof read report and fix mistakes

Submit report

Plan report 2

Gather more data

Analyze data using Swot, PESTLE etc.

Plan and structure the essay using bullet points

Turn bullet points into paragraphs

Add final touches and submit the essay

References

● Statista. (2023). Global net sales of Under Armour by region. Retrieved from https://www.statista.com/statistics/518422/global-net-sales-of-under-armour-by-region/

● Statista. (2023). Nike's US sales by product category since 2007. Retrieved from https://www.statista.com/statistics/241706/nikes-us-sales-by-product-category-since-200 7/

● Statista. (2023). Net sales of Adidas and Puma worldwide. Retrieved from https://www.statista.com/statistics/269599/net-sales-of-adidas-and-puma-worldwide/

● Statista. (2023). Revenue of Nike, Adidas, Puma, and Under Armour footwear segment. Retrieved from https://www.statista.com/statistics/1242355/revenue-nike-adidas-puma-under-armour-foo twear-segment/

● Statista. (2023). Adidas company insights. Retrieved from https://www.statista.com/topics/1257/adidas/

● Statista. (2023). Net profit of Nike since 2005. Retrieved from https://www.statista.com/statistics/241685/net-profit-of-nike-since-2005/

● Statista. (2023). The Adidas Group's footwear production worldwide. Retrieved from https://www.statista.com/statistics/227015/the-adidas-groups-footwear-production-world wide/

● Statista. (2023). Revenue comparison of Adidas, Nike, and Puma. Retrieved from https://es.statista.com/estadisticas/541990/facturacion-de-adidas-nike-y-puma-en-compa racion/

● Statista. (2023). Under Armour company insights. Retrieved from https://www.statista.com/topics/2470/under-armour/

● Statista. (2023). Global net sales share of Under Armour by region. Retrieved from https://www.statista.com/statistics/518584/global-net-sales-share-under-armour-by-regio n/

● Statista. (2023). Revenue of Nike, Adidas, and Puma footwear segment. Retrieved from https://www.statista.com/statistics/278834/revenue-nike-adidas-puma-footwear-segment/

● WSJ. (2023). Kevin Plank and Under Armour's market strategy. Retrieved from https://www.wsj.com/business/kevin-plank-broke-under-armour-can-he-fix-it-8520cf38