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Under Armour Company’s Management Strategy

Under Armour became one of the most promising prospects when it came to the production of sporting goods. The company sees itself as a rival for such companies as Nike and Adidas. The strategy of Under Armour can be described as flexible and well-adjusted to the real-life market, but it has several critical weaknesses that seriously impact the company’s brand image and reputation. If we are talking about the strengths of Under Armour, the first thing that comes to mind is the unconditional growth of the company and its profits. During a time interval of fewer than ten years, Under Armour was able to conquer the market and get in line with such brands as Adidas and Nike (Hitt 101). The company expects to find its niche in the market and does everything to succeed. One of the strong sides of their strategy is their collaboration with famous athletes and their participation in Under Armour’s marketing campaigns. Another asset that adds to the strengths of the company is its rich and stylish advertising. The influence of famous athletes is enormous and Under Armour strives to make the most out of it. The company believes that its future is bright as their incomes increase annually. One of the reasons for the increased output is the global nature of the brand.

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The key weakness of the company relates to its uncontrolled expenditures. The investments of Under Armour cause a number of critical issues for the company. The problem is that the company has to spend a lot of money not only on marketing but also on various innovations (in both IT and manufacturing). These innovations include the improvements applied to the company’s supply chain and expansion planning. Under Armour’s unrestrained outlays are expected to predict the future of the company (Porter and Norton 56). On the other hand, the company’s attempts to win over social media did not end up successfully. Under Armour’s online presence is a serious topic of discussion that should be carefully approached by the executives. The third company’s weakness can be characterized as an inability to win over the athletic customers who are looking for the best brand that offers sporting goods. This customer segment is rather large and Under Armour will have to find a way to obtain the data concerning the needs and requirements of these customers so as to polish up its marketing strategy and win big.

The first strategic suggestion for the company is to invest in footwear production. In terms of footwear, Under Armour has the chance to compete with its rivals. The thing is, the company will have to explore the markets that are not very popular on the international scale (including golf and tennis). The company’s opportunities look promising, and its decision to improve its footwear product mix will be profitable (Hitt 112). The second strategic suggestion is to distribute the goods directly to the company’s customers. In perspective, this will help Under Armour to reach the suburban and rural markets (in the US only) that are untouched at the moment. The third opportunity is the expansion of the brand that will lead to its worldwide recognizance. This will majorly affect the incomes of the company and help the administration to minimize their expenditures. The process of expansion will assist the company in adjusting their product mix to the specific needs of its customers all over the world and building a positive brand image for Under Armour.

Works Cited

Hitt, Michael. Strategic Management Cases: Competitiveness and Globalization. Thomson, 2012.

Porter, Gary, and Curtis Norton. Financial Accounting: The Impact on Decision Makers. Delmar Learning, 2014.

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