Introduction
Under Armour Inc. is one of the major athletic wear companies in America and its constituent neighbors, dealing in various sports equipment and accessories. Starting in the late 20century, around 1996, the company has metamorphosed to become one of the largest enterprises in the athletic wear industry in America and the globe at large, rivaling big brands such as Nike, Adidas, Umbro, Puma, and Reebok. In the US, Under Armour Inc. has grown to become the third largest company, only trailing Nike Company and Reebok.
The success story of Armour Inc. is attributed to its strategic management, which has seen the company perform well in marketing and product sustainability. In addition, the firm’s products are among the best in the athletic wear industry and are trusted by consumers. Despite the high growth rate, the company contends with strong rivals like Nike and Reebok domestically, as well as Adidas, Puma, and Umbro on the global stage.
Mission
Under Armour Inc.’s mission is to produce quality athletic wear and accessories that satisfy the needs of sports professionals and fans. Under its motto ‘Protect this house,’ the firm is determined to protect consumers’ interests through quality and satisfactory services (Poole, 2022). To achieve its objective, the company has been improving the quality of its products through innovation and creativity. This has led to the development of unique athletic wear, such as the moisture-wicking synthetic fabric T-shirt, which it pioneered in the industry and is commonly associated with its brand.
Corporate Values
Under Armour Inc. has several principles guiding its operation and its employees’ conduct. Values such as product quality, diversity, customer service, accountability, and transparency help the firm achieve its objectives (Chan et al., 2022). The principles are useful in molding the company’s organizational culture and ethics, reminding the workers and the leadership of the company’s mission and vision.
Competitiveness
Under Armor Company ensures that all its operations focus on sustaining its competitiveness in a dynamic environment prone to change. It motivates the employees and leadership to act as leaders in various responsibilities and duties (Poole, 2022). Since it faces stiff competition from global brands such as Nike and Reebok, the company is always motivated to be one step ahead to catch up with its rivals and become a respected brand.
Innovation
Innovation is one of the fundamental components driving the company towards its organizational competency. Since its inception, the firm has been motivated to focus on innovation and creativity in product quality and marketing (Chan et al., 2022). Being a young company amidst intense competition, innovation has been the company’s masterstroke in the market, outwitting its rivals and gaining a competitive advantage over the others.
Profit Maximization
Under Armour Company is a profit-oriented business enterprise motivated to maximize profit. To achieve this, the firm focuses on maximizing sales through price policy and product quality (Poole, 2022). Since its establishment, the firm has employed various strategies, including television commercials, endorsements, sponsorships of TV shows, and club sports sponsorships, which have given it a widespread consumer support both within the local market and across international audiences.
Under Armor as a Brand
The company is determined to achieve a global market following for its product. To attain this, the company concentrates on brand building through various strategies such as commercials, endorsements, sponsorships, and corporate responsibility (Chan et al., 2022). In addition, the company has a popular logo, making it easily identifiable in the market and among consumers. Under Armor is focused on building the brand in the local and international markets.
Customer Focus
The firm appreciates its customers and is always focused on meeting their needs in terms of tastes and preferences. To achieve this, the company always ensures that the products and services meet the consumers’ expectations through quality (Lee, 2022). The firm has been on a constant creativity and innovation course to improve its products and manage the ever-changing dynamic of consumer tastes and preferences.
Organizational Culture
Under Armour Company understands the importance of a strong organizational culture in management and attaining success. As a result, the firm is strict on maintaining organizational values and principles such as diversity, product quality, transparency, customer care, and accountability (Li, 2022). The company trains and instills the principles among its workers, and during recruitment, the firm focuses on candidates with values that resonate with its organizational culture.
Corporate Responsibility
Under Armor, Inc. understands its social responsibility to improve the environment and humanity. The company has been actively taking part in various projects that help to improve humanity and make the world a better place. For instance, the firm was involved in promoting women’s health through fitness and exercise to fight breast cancer (Kittelberger & Allramseder, 2019). In addition, Under Armour is helping veterans with the Wounded Warrior Project, which honors, sensitizes, and assists wounded veterans.
Products
Under Armor Inc., as an athletic wear firm, is focused on producing sportswear and accessories. In its line of operation, the firm deals in various products for players and fans. The products include:
- Athletic shoes.
- T-shirts.
- Jackets and hoodies.
- Pants, leggings, and shorts.
- Athletic bags, gloves, caps, and protective gear.
Under Armor understands the importance of differentiation and diversity. As a result, the firm has developed other products for kids, such as toys for games (Li, 2022). In addition, the company is diversifying its product line to produce TurfGear, AllseasonGear, and StreetGear, which are meant to serve other purposes and consumers.
SWOT Analysis
Strengths
Market Recognition
Under Armor enjoys a positive market following among local and international consumers due to its brand, which has been maintained by effective management practices. The firm’s logo is easily identifiable and resonates well with the customers. For example, the company’s moisturized fabric T-shirts enjoy a large market following, both locally and globally.
In addition, the firm’s UA cap is widely recognized by consumers (Gil, 2017). In addition, the company has brand ambassadors such as the famous basketball player Steve Curry and movie star Dwayne Johnson, who are helping to popularize the firm’s brand. Similarly, Under Armour is the outfitter of the popular XFL football league, enjoying a large following from the sport’s fan base.
Competitiveness
Under Armour is doing well in fostering competitiveness in the global market through product quality. The company has been engaging in effective marketing through commercial advertisements, sponsorships, endorsements, and other strategies, which have helped to build the brand in the market (Kittelberger & Allramseder, 2019). For example, Under Armour Inc. is the official sponsor of the reality TV show The Duck Dynasty, which is one of its successful marketing strategies.
Corporate Social Responsibility
Under Armour is one of the firms that boasts of positive contributions to community service through its activities. The company is participating in the fight against breast cancer by promoting physical fitness and healthy exercise among women. In addition, the firm assists war veterans through the Warrior Wounded Project, which honors, sensitizes, and assists injured former and active military officers (Gil, 2017). Active engagement in corporate social responsibility helps the business gain a competitive advantage over others.
Weakness
Political Controversies
Under Armour has been involved in some controversies that have threatened its brand and market influence. First, the engagement of the firm in politics by endorsing and showing support to President Donald Trump through its CEO, Kevin Plank, triggered a public uproar, and boycotts almost sank the company (Gil, 2017). The decision caused the firm’s reliable ambassadors, such as Steven Curry, to dump the brand.
Fireproofing and Flammability
Under Armour Inc. has been under criticism for its products, which are alleged to cause harm. For instance, in 2018, Armour clothing was accused of being flammable and causing severe burn injuries to a child following a popular Facebook post (Lee, 2022). After an investigation by the United States Forest Service, the material used by Under Armour is likely to cause burn injury, a claim that affects the consumers’ trust and confidence in the company’s product and brand at large.
Opportunities
International Market
Under Armour should consider exploring the international market, which remains unpenetrated. Even though the firm has established branches in Canada and China, there are still opportunities in the European and African markets (Li, 2022). The company should consider extending its branches in other regions to expand its market and compete with other rivals such as Nike, Reebok, and Adidas, among others, which are enjoying success in foreign markets.
Technology
With emerging technologies, the company should take advantage of the development to enhance its competitiveness. Technological concepts can help improve product quality through differentiation and other innovative measures (Lee, 2022). In addition, Under Armour Inc. can take advantage of digital technology for strategic marketing through online media platforms such as Facebook, Twitter, TikTok, and Instagram, among others, especially in this era of digital civilization.
Threats
Competition
Despite the strategies to foster competitiveness, the company is facing stiff competition from established brands such as Nike and Reebok in the local market and Adidas, Puma, and Umbro in the international market. The stiff competition is blocking the attempts by the company to gain a market following, considering the brand loyalty they enjoy (Direction, 2022). For instance, Adidas, one of the rival firms, enjoys an immense brand loyalty among American and global consumers.
Business Objectives
Under Armour Inc. is focused on maximizing its wealth and sales. To achieve this objective, the firm is determined to attain market growth by increasing sales and influence. Under Armour has tried to implement this by expanding operations through subsidiary stores, which are spread across 39 states in America (Fenwick et al., 2022). In addition, the firm has penetrated the foreign market by establishing branches in Canada and China. Despite the efforts, much still needs to be done.
- Geographical Market Expansion. Under Armour should consider expanding operations in foreign markets, especially in Africa and Europe, where it has yet to penetrate.
- Technology. The emerging technologies are offering the best opportunities for Under Armour to achieve its objectives by maximizing sales. For instance, digital technology is providing opportunities for online marketing and brand promotion.
- Product Quality. Most consumers consider quality when selecting a product. With numerous substitutes in the market created by stiff competition, customers will always prioritize high-quality products. Brands enjoying customer loyalty and a wide market following have invested in the quality of their products and services (Lee, 2022). Under Armour should emulate this to improve product quality.
Strategy Implementation and Recommendation
Market Expansion
To achieve the market sales objective, the company must expand its market base by investing in effective marketing strategies to popularize the brand. Under Armour should penetrate foreign markets such as Africa, Europe, South America, and unexplored parts of Asia and North America, which have great potential. Sports are popular in many countries across the world, with great fan bases and participants. For instance, football is a very popular sport in Europe, with many clubs and fans participating (Li, 2022). The company should, therefore, take advantage of this popularity to penetrate the market with football wear such as boots, jerseys, and balls for both professional players and fans.
The firm can consider sponsoring some football teams in the region to increase sales through jersey purchases. Similarly, countries such as India and Pakistan, which are highly popular in cricket, offer market opportunities for selling cricket equipment and jerseys. Under Armour should move quickly to capitalize on this opportunity and invest in increasing market sales.
Product Differentiation
Product differentiation is key to gaining a competitive advantage in the athletic industry with stiff competition. The company should consider embracing differentiation practices in its products to attract various types of consumers and increase sales. While it deals in athletic wear, there are numerous opportunities to explore and invest in to reach different groups (Fenwick et al., 2022). For instance, the firm should consider developing kids’ toys and accessories, such as skate boots, for children and individuals who love skating. That will help expand the market base and thus increase sales.
E-Commerce
The world has been embracing digital technology in recent times. As a result, digital media is offering opportunities for marketing and brand popularization. Online platforms with large followings, such as Facebook, Twitter, Instagram, and TikTok, provide the best platform to expand the market base (Direction, 2022). Under Armour should thus take advantage of e-commerce to expand its market and sales.
Conclusion
Under Armour Inc. is an American-based company that deals with athletic wear and sports products. The firm was started in 1996 but has become one of the largest companies in the athletic wear industry, rivaling brands such as Nike and Reebok. The company’s success story is attributed to its strategic management, characterized by innovation, competitiveness, customer experience, and corporate social responsibility.
Under Armour boasts of market recognition, competitiveness, and corporate responsibility as its strengths while suffering political controversy and product controversy as weaknesses. The company enjoys international markets and technology as opportunities while facing stiff competition. Its main objective is to maximize wealth and sales, and it depends on product quality, market expansion, and technology to achieve that. However, the company must employ e-commerce and product differentiation and penetrate foreign markets to attain that.
References
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