Last Updated 22 Jul 2020

Under Armour SWOT analysis

Category Swot Analysis
Essay type Analysis
Words 496 (1 page)
Under Armour: SWOT analysis

Under Armour’s accomplishment over the last ten years has been nothing but remarkable. However, serious threats to the company growth should be a concern. Under Armour is strongly overlooking the fierce competition in the sports apparel industry that has the potential to seriously hold back the continued success of the company. For instance, the marketing strategy of Under Armour should face severe scrutiny as the company delivers a particularly wide-range of products, still they only focus on their football apparel for male athletes.

Their product offerings target a sizeable market and have the aptitude to appeal to a much greater target market. Under Armour produces products for many sports, everything from hunting to lacrosse, yet these products are generally unheard-of. There is very high possibility that current companies in the sports apparel industry might enter the performance apparel market in the future. Under Armour does not hold process or fabric patents over their products thus this issue presents a threat.

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Furthermore, there is always the potential threat of a newcomer coming out with products comparable to Under Armour at a much lower cost and disrupt the whole market of performance apparel. Nike and Adidas are threats because they possess substantially larger resources at their disposal. In addition, they are not going miss the chance to participate in the performance apparel market. The fact that Under Armour does not hold patent their products makes this threat much higher than the others. Their products can be copied in the future by other companies.

International expansion offers the greatest growth opportunity for Under Armour as it currently receives only around six percent of its profits from markets outside the United States In comparison, Nike accounts fifty-eight percent of its revenues from markets outside North America. The future success of Under Armour hangs on emerging their business outside of United States. However, this can be quite difficult because Europeans are less influenced by Under Armour traditional football and baseball marketing tactics.

International sports such as running, soccer, and basketball are better received. The brand is not very well known for its footwear. While Under Armour has gotten terrific growth in its football and baseball categories throughout the past few years, it will need to focus on basketball, soccer, and running in the future in order to drive its footwear sales. Under Armour sales growth in women’s business has the potential outperform men’s business. The growth in women’s business offers a great opportunity for the company as it usually been more well-liked for its men’s products.

In addition to women’s business, youth business also has remarkable benefit. Building future brand loyalty is absolutely vital in the sport apparel industry because it builds a new generation of consumer for the brand. The company product prices are usually higher than most other companies. This is can turn many cost-conscious consumers away from the brand. There is a way in which the company can tackle this problem. The solution is to design a new product lines for the cost-conscious consumers.

Under Armour SWOT analysis essay

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