Marketing Analysis Of Under Armour (UA) ✓ Solved

Marketing Analysis Of Under Armour (UA)

Plank established Under Armour in 1995 upon noticing that the cotton shirts of his football team at the University of Maryland were always soaked in sweat and noted that there had to be something better for his team (Kraft & Lee, 2009). He thus wanted to create shirts that were always cool even in the hottest of weather conditions. Plank went ahead and designed his prototype for his team, which attracted a lot of attention from other collegiate teams. This prompted the expansion and growth of Under Armour products and resulted in the opening up of its headquarters at Maryland-Baltimore (Kraft & Lee, 2009).

Nonetheless, despite its success, Under Armour continues facing stiff competition from similar sports retail brands. As a relatively new organization, Under Armour faces a high threat, yet it still has the opportunity to incorporate creative and innovative ideas (Kraft & Lee, 2009). The SWOT analysis below chronicles the elements that make Under Armour stand out and strategies that it could incorporate to reinvent its brand and take an even more significant share of the existing market.

SWOT Analysis of Under Armour

Strengths

One of Under Armour’s greatest strengths is the unique and innovative technology behind its products. Under Armour was established on the premise that its t-shirts wick off sweat as opposed to absorbing it, hence keeping the athletes cool even in hot temperatures. In 2013, the company went on and released shirts that tracked an athlete’s heart by installing sensors in the shirts that could register electrical signals from the center (Boone & Kurtz, 2013). Moreover, the company also developed tape-replacing cleats that offered ultimate support to the athletes. Such outstanding inventions present Under Armour a better competitive position against other retail brands.

Under Armour’s brand recognition in the sporting arena is another significant strength. The brand is recognized worldwide in sporting events like football, snowboarding, and baseball. Its company logo is known globally, especially in the last decade (Boone & Kurtz, 2013). The company has invested heavily in marketing for golf, attracting brand equity in the golf arena to the extent that professional golfer Jordan Spieth endorses the organization (Boone & Kurtz, 2013).

Under Armour also takes pride in producing a wide range of products, which reinforces its identity beyond just t-shirts. This diversity showcases the company’s commitment to utility and quality.

Weaknesses

One major weakness is Under Armour’s lack of competitiveness in the shoe industry. Despite releasing models like the Speed-form, they have not significantly impacted the market compared to Nike and Adidas (Wagner, 2013). Furthermore, Under Armour’s product range does not include a widely recognized shoe, which limits its appeal in the footwear segment.

Another critical weakness lies in the technology and materials used to create its products, which are facing diminishing availability due to increasing patent disputes, especially against major competitors such as Nike and Adidas (Wagner, 2013).

Opportunities

Under Armour has significant opportunities in international expansion. For instance, its recent operations in Brazil represent a crucial step towards achieving its international goals (Kerin & Hartley, 2016). Furthermore, expanding its target market to include women’s apparel could lead to enhanced market positioning and profitability (Heitner, 2014).

Threats

Under Armour faces intense competition from established brands like Adidas and Nike, which continuously improve their offerings to maintain their market leadership. Additionally, the emergence of less expensive alternatives may attract consumers looking for budget-friendly options (Heitner, 2014).

Recommendations

To leverage its opportunities and strengths, Under Armour should prioritize investments in research and development, aim for international presence, implement differentiation strategies, and broaden its product range. Focusing on these areas would not only help Under Armour mitigate the threats posed by competitors but also position itself as a leader in the sports apparel market.

Conclusion

In conclusion, while Under Armour has certain inherent strengths, it is necessary to overcome its weaknesses, capitalize on opportunities, and mitigate threats. With a strategic approach, particularly in expanding its international reach and enhancing product innovation, Under Armour stands to gain a significant competitive edge in the dynamic sports apparel landscape.

References

  • Boone, L. E., & Kurtz, D. L. (2013). Contemporary marketing. Cengage Learning.

  • Kerin, R. A., & Hartley, S. W. (2016). Marketing. 13th ed.

  • Kraft, P., & Lee, J. W. (2009). Protecting the house of Under Armour. Sport Marketing Quarterly, 18(2), 112.

  • Heitner, D. (2014). PGA Tour Golfer Jordan Spieth Striking Gold On-And-Off The Course. Forbes.

  • Wagner, K. (2013). Under Armour’s Crew of Star Athletes. CNNMoney.