We previously published the unique SWOT review of a global American-inspired brand that is all about fashion exercise, Reebok, next time we’ll take examine the analysis of the SWOT of Under Armour.
Under Armour is the inventor of sportswear and performance costumes designed to keep athletes and players dry, cool and comfortable throughout an exercise, game, or exercise.
Beginning with the creation of a t-shirt with moisture-wicking properties to becoming a global company, Under Armour has its range of sports products that include hats, pants bags, gloves, shoe masks, facemasks and more.
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Before we dive into our SWOT study for Under Armour, here’s a deep review of the company’s history beginning with its founding, products, financials and its competitors.
About Under Armour
Under Armour, Inc. is a US-based sports equipment manufacturer of casual and sportswear and provides a large selection of products.
The company was established on the 25th of September 1996, founded through Kevin Plank. At the time Kevin Plank was 24 years old, he would lead the special football teams at the University of Maryland.
The items are made for weather-related conditions and are designed to be adaptable.
They are available over the world, and the evolution of Under Armor has made it the largest online health and fitness Health Company worldwide.
The brand has beaten many challenges because of its extensive product line and high-quality clothing.
Since the launch of Under Armour fitness apps, the company has grown to become one of the biggest fitness firms and has grown into an industry leader in the field of sports equipment.
An Overview of Under Armour
|Name||Under Armour, Inc.|
|Chief Executive Officer (CEO)||Patrik Frisk|
|Executive Chairman||Kevin Plank|
|Headquarters||Baltimore, Maryland, United States|
|Type of corporation||Public|
|Revenues (2019)||$5.27 billion|
|Key products/ services||Footwear, sportswear, clothing, toiletries|
|Key competitors||Nike, Adidas, Reebok, ASICS, New Balance, PUMA, Vans, Fila, Puma, Skechers|
Under Armour’s Strengths
Strengths are internal factors that give an organization an advantage over competitors. These internal factors could result from the processes the company does well, its history and access to resources that are exclusive and so on. The strengths of Under Armour are listed below.
❤️ Brand Name: During the 20 years that Under Armour has been active in the market, it has earned brand recognition for its brand. The company has sponsored a number of sports teams, events, and leagues. Additionally, it has also been a partner for several famous athletes, like Stephen Curry. Through these sponsorships, Under Armour has developed its brand name and has become an iconic brand throughout the US.
❤️ Portfolio of Products: Under Armour initially offered limited products. But over the last two years, the company has dramatically developed its product line. The variety of items available makes it one of the top alternatives for activewear, sportswear and other clothing products. The products it sells are one of the main reasons behind its supremacy in a variety of markets.
❤️ Expanding Digitally: Under Armour has also focused on the digital market with its policy of expansion into the digital space. The company bought several applications, including MapMyFitness as well as MyFitnessPal. These acquisitions have allowed the company to market its products to internet users. With these acquisition purchases, the company has dramatically grown its revenue and its customer base.
❤️ International Reach: Under Armour has established its presence in several markets across the globe. The company has several offices across North America, Latin America, Asia-Pacific, and Europe. The vast array of chains, distributors and stores has helped with this process. It also sells its merchandise digitally, expanding its reach across the globe.
Under Armour’s Weaknesses
They are in opposition to strengths and can be a result of internal factors that can cause competitive advantage. These weaknesses can affect the growth of a business, its revenues and the number of customers. In addition, there are a variety of negative effects. A few of the weaknesses of Under Armour are as follows.
❤️ Price: Under Armour offers a wide range of premium quality. But, they tend to be on the costly end of the spectrum when it comes to prices. For those who are middle- or lower-class the products of Under Armour aren’t affordable. This is one of the reasons why many customers have left for competitors that offer lower-cost goods.
❤️ Dependent on the US Market: Under Armour has an international presence across different continents. However, the business relies heavily on its US market as a significant part of its business. Under Armour has been successful in leveraging the market and making profits from it. However, this dependence has also hampered its revenue over time.
❤️ High Costs of Investment: Under Armour has been active in the world of investment throughout the decades. The company has made billions of dollars in investments throughout its history. Certain of these investments were effective in boosting the overall operations. But, others have also resulted in losses and proved to be faulty choices. The expense of investment has been among the biggest weaknesses of Under Armour.
Under Armour’s Opportunities
Opportunities are external elements that provide companies with potential for growth. These are the same for any company within an industry or market. For businesses, it is essential to capitalize on these strengths and transform these into advantages. The opportunities offered by Under Armour are as follows.
❤️ The product diversification process: Under Armour has a variety of products that are for its customers. It claims to be innovating in its business practices and has demonstrated that from the beginning. It has the potential to diversify its product line to be able to compete in new markets. In this way, the business will be able to attract more customers without changing its business model drastically.
❤️ The Fitness Market: is Under Armour’s principal product line is geared toward consumers who wish to stay healthy. But, the company shares its earnings with its competitors including Nike, Puma, Adidas and others. Under Armour has the opportunity to capitalize on this market as more and more people are embracing an active lifestyle. With a focus on the fitness-focused customer group, Under Armour can increase its profits.
❤️ Collaborations: Under Armour has been successful in collaborations with other businesses in the past, for instance, Kohls. Collaborations are a great chance that allows Under Armour to increase its business. It is also able to create networks to expand its reach to new markets and new customers to sell its goods. Additionally, it provides benefits to the other party which creates a win-win for everyone.
Under Armour’s Threats
External factors could create problems in the near future. They are not opportunities and are present for every company within an industry. Companies need to recognize these risks to make sure they don’t fall, victim. The threats from Under Armour are listed below.
❤️ Competitiveness: Under Armour operates in an environment of competition. It is currently facing opposition from a number of prominent brands like Nike, Puma, Adidas and many more. Additionally, they also face threats from any new competitors who enter the market. Despite its long-standing business model, Under Armour can face issues with the rising competition.
❤️ Controversies: Under Armour has faced numerous controversies over time. These issues have damaged the brand’s image and turned customers away from the brand. In addition, the company is facing the risk that new controversy could occur, which could damage its image in the marketplace. Under Armour can lose more customers, which would reduce its revenue.
❤️ Brand loyalty: Despite Under Armour’s efforts to improve its customer service, many customers remain committed to the brands they use. It is in danger that its customers will turn loyal to its rivals. Recently it was reported that more teenagers favoured Vans’ products than Under Armour. If the majority of customers remain at those two companies, the future profits of Under Armour may be affected.
Limitations of SWOT Analysis for Under Armour
While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely as a tool for strategic planning However, the analysis has its fair share of drawbacks.
- Certain characteristics or aspects that an organization has can be both strengths and weak points at the same. This is among the main limitations that SWOT analysis has. Changes in environmental regulations can be an issue for the business, but as well as an opportunity in the sense that it can allow companies to be on the same level or even gain an advantage over competitors when they can create products more quickly than competitors.
- SWOT doesn’t provide a way to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be a complete solution.
- The matrix is merely an initial point of reference for discussions on how the suggested strategies might be implemented. It also provided an evaluation window, but it did not provide any implementation plan that is based on the Strategic Competitiveness Under Armour
- It is a static analysis and analysis of the existing conditions and hardly any prospective modifications. As the environment, circumstances threats, strategies, and circumstances alter, the dynamic of the competitive landscape cannot be analyzed in one matrix.
- SWOT analysis could cause a company to focus too much on the importance of a single external or internal element in formulating strategies. There are interrelations among the most important external and internal aspects that SWOT doesn’t reveal, which can be vital in formulating strategies.
Weighted SWOT Analysis of Under Armour
Given the previously stated shortcomings of the SWOT analysis/ matrix, the corporate management determined to give an appropriate amount of weightage to each of the strengths and weaknesses of the business.
Companies also evaluate the probability of events that will occur in the near future and the impact they can be on the performance of the company.
This is referred to as weighted SWOT analysis. It’s better than basic SWOT analysis as With weighted SWOT Analysis under Armour managers can concentrate on the most crucial elements and ignore the less crucial ones.
It also eliminates the problem of the long list, which causes organizations to make a lengthy list but not addressing any of the elements are considered to be crucial.
Final Words on Under Armour SWOT Analysis
Under Armour has been a staple in the sports market for many years, and has enjoyed extended periods of steady expansion.
The SWOT analysis of Under Armour indicates it has an exciting future ahead of it. The company has made enough investments due to publicity and media attention. All that is needed is a necessary restructuring by cutting costs.
The company’s growing revenue and rapid expansion make it a great investment option. Furthermore, the brand is recognized on a global scale.
Under Armour already has a significant presence in the American market. It is now required for expansion internationally.
Despite the potential dangers they may face, especially due to an epidemic, we think Under Armour still can become an important competitor to other brands similar to it when they take advantage of their strengths and advertise their future prospects.