Under Armour was created in 1996 by Kevin Plank, who continues to serve as CEO. Under Armour is an American-based firm that manufactures casual and athletic gear and footwear, and accessories.
It operates restaurants throughout Europe, the Middle East, Africa, North America, Asia, and South America.
Under Armour (founded in 1996) is a footwear, sportswear, and casual clothes brand based in Baltimore, Maryland, United States of America. Additionally, they have developed a variety of fitness apps to assist consumers in maintaining a healthy lifestyle.
Under Armour SWOT analysis helps you understand the business position in the market while comparing it with its competitors.
The brand has stayed unmatched in its mission of providing athletes with the highest-quality T-Shirts, lighter, dryer, and more comfortable.
It grew to be a multibillion-dollar brand under the leadership of Kevin Plank, who founded the company and served as CEO until 2020 when he was succeeded by COO Patrik Frisk.
Under Armour recently had to close stores due to the Covid-19 outbreak, which was a huge blow for them, as it was for many other businesses, making it a fascinating case study.
The goods are designed to be weather-resistant. Under Armor is the largest digital fitness and health company globally due to its global reach and evolutionary development.
Under Armour SWOT Analysis
Under Armour SWOT analysis is what you conduct when you’re interested in learning about a company’s position in the market; it’s an excellent technique to examine and comprehend a company’s competition.
If you want to understand SWOT better, consider Uber. You can book transportation from any location to any location at any time. This is unquestionably the company’s strength.
The fact that smartphones are essential in every family-led Uber to use the opportunity of offering an app that could be used easily on any mobile device.
Uber faces a challenge from traditional cab services; however, because many older generations do not use smartphones and are not especially tech-savvy, they prefer to stick with what they are familiar with.
|Company||Under Armour Inc|
|Year founded||September 25, 1996|
|Headquarter||Baltimore, Maryland, United States|
|Market Cap||$11.70 Billion (August 2021)|
|Revenue||$4.23 Billion (2020)|
Uber brings in many young people; however, they will need a long way before cabs are replaced.
A significant problem is the incidence of harassment cases involving many clients globally, which gives them a negative reputation. People are frequently hesitant to order an Uber, fearful of being trapped with the incorrect type of driver.
Strengths Of Under Armour
The most impressive aspect of the brand is its global reach, with important locations in North America, Asia Pacific, EMEA, and Latin America.
The brand has survived and thrived in the face of competition because of its wide distribution methods, portfolio, and outstanding quality clothes.
We have high regard for Under Armour’s consistently unique marketing methods. The brand’s strength lies in its ultra-soft, light, and sweat-resistant T-shirts, ideal for athletes looking to stay fit.
This finally positioned Under Armour as a leader in the sports gear business. With the launch of their fitness apps, the firm can now claim to be the world’s largest fitness company.
1. Brand Portfolio
Under Armour’s vast product selection has aided in the company’s growth. The corporation is not reliant on a single product. Its establishment did not stop at footwear but expanded to include apparel, accessories, and more.
The broad product line virtually eliminates the possibility of failure. Additionally, it ensures a high sales ratio and the company’s continued growth. Clothes accounted for 67% of revenue between 2016 and 2017, while footwear accounted for 21%.
2. Use of Digital Apps
The Under Armour app store includes MapMyFitness, MyFitnessPal (for tracking calories and nutrition), and Endomondo (a health and fitness tracking app). It could diversify its resources, increase its revenue potential, and maintain its industrial revolution potential.
3. Distribution Networks
Investors have been amazed at the rapid growth of Under Armour. It is achievable as a result of the company’s innovative approach to operating across several distribution networks.
Most of its revenue comes from wholesale distribution, while a third is from direct sales to consumers. There are currently licensing agreements in place for the company’s products in several countries. These operational changes have aided in the brand’s global expansion.
4. Brand Reputation
Under Armour was ranked as the world’s fifth most valuable business brand in 2017. The brand recognition of Nike has enabled it to create a reputation for authenticity and reliability. Consequently, investors are no longer worried and are now actively investing in the company.
Weaknesses Of Under Armour
They already had fewer physical locations worldwide than Under Armour competitors like Nike, but this latest pandemic has made it considerably worse.
Sales fell by a stunning 41% following COVID-19, and many financial analysts believe they could fall another 25%.
The Under Armour target market consists of men and women, but they don’t seem like the most obvious choice for female athletes. The prices of their products are also prohibitively high, scaring away many people from buying them. Under Armour clothing and accessories can also be customized only to a limited degree.
The company is very new, with limited locations and a limited presence in markets. The Consumer Product Safety Commission of the United States of America has voluntarily recalled Under Armour brand athletic cups because they may break when struck, resulting in serious injury.
1. High Investment Costs
Under Armour has taken a risk by increasing its investment spending significantly over the last three years. It spent approximately $847 477,000 and $153 312,000 over the last two years. Its restructuring plan for 2017 increased costs, and additional expenses are expected.
This investment is beneficial if it results in increased revenue. It does, however, limit its ability to make fresh purchases, and its ability to generate further revenue remains in doubt.
2. Limited Geographic Presence
The company is still in its infancy, having only a modest presence in international markets. The North American subsidiaries generate 83 percent of their revenue, completely dependent on the American market.
The company has not been able to expand internationally and generate comparable revenues. This is vital to ensure the company’s growth is sustained.
Opportunities For Under Armour
Under Armour has a huge opportunity here as the “fit” lifestyle grows in popularity every day. Social media has become an increasingly crucial aspect of the fitness world as fitness enthusiasts and influencers grow continuously every day.
The target market for Under Armour is easily expandable to include a children’s line. The company can also diversify its product line and take on new sports forms to expand further.
They can also employ marketing methods to attract female consumers who cater to but do not appeal to as much.
1. Launch new products
Under Armour takes pride in its inventive spirit. Since its inception, the products it has created have been technologically advanced. This provides it with the power necessary to continue offering improved products with necessary revisions. Extending its product selection will attract more consumers and will ultimately benefit the company.
2. Global Market
Under Armour has a lot of opportunities to grow its sales and acquire new clients in international regions. The company’s sales increased by 57% in the second quarter of 2017. Prospects look bright based on this figure.
3. Collaborative efforts
Kohl’s began carrying Under Armour products in 2017, and the two companies have collaborated ever since. According to Kevin Marshall, CEO of Kohl’s, the collaboration was a success.
Several well-known department stores sell Under Armour products, though others do not, such as JC Penney. Under Armour should pursue additional collaborations and partnerships to expand its market presence and revenue in the future.
Threats For Under Armour
Its core competency of sweat-proof T-shirts is no longer exclusive to this brand; other companies were able to catch up, and this type of gear has become widely available at lower prices.
If the brand does not find a means to differentiate itself from the competitors, they risk major difficulty.
Additionally, as with any other firm, the primary challenge they face is Covid-19, which has detrimental effects on their operations.
On the other hand, Adidas and Nike have strong brand recognition and recall and a large client base globally, posing a significant challenge to Under Armour.
Certain goods, such as chin straps or athletic cups, are extremely sensitive and tarnish the brand name. Brand recognition is low in comparison to major clothes and footwear brands.
1. High Competition
Nike and Adidas’ two major competitors are better known in foreign markets and have more operational experience.
Under Armour has benefited from this by building a stronger consumer base, but it could jeopardize its survival.
2. Polarization of political views
The corporation was recently embroiled in a controversy over the Trump administration.
It has become more difficult for the corporation to operate due to the political division and has jeopardized its ability to operate.
3. Features and benefits of the product
Experts have questioned Under Armour’s chin straps and sports cups for posing a risk of sporting injury. Any sort of injury caused by these products has the potential to tarnish the brand’s reputation and drive away endorsements.
Final Words on Under Armour SWOT Analysis
Under Armour has been a fixture in the sports market for decades, experiencing an extended period of consistent growth.
Under Armour’s SWOT analysis indicates that the brand has a bright future ahead of it. The corporation has made sufficient investments as a result of media attention and publicity. All that is required is some necessary reorganization through expenditure reductions.
Its already burgeoning revenue and expansive growth make it an outstanding investment candidate. Additionally, the brand is already well-known on a global scale. Under Armour already has a strong foothold in the domestic market; it needs to expand internationally.
Despite the possible dangers they face, particularly in light of the pandemic, we believe Under Armour still can become a significant rival for other similar brands if they capitalize on their strengths and properly market their prospects.