Under Armour Strategic Management

Michael Nadler

GBA 490- 005

Under Armour Written Case

04/05/2016

Table of Contents:

Issues and Recommendations………………………………………………………………………………………….……..1-2

Appendix……………………………………………..…..………………………………………………………………………..…2-23

        External Analysis……………………….………………………………………………………………………………3-16

PESTEL Analysis………………………..…………………………………………………………………………3

                Dominant Economic Characteristics……………………..………………………………..……...….5

                Five Forces Analysis………………………………………………………….…………………………………7

                Drivers of Change in the Industry……………………………………………………………………....8

                Competitor Analysis……………………………………………..…………………………………..………..9

        Internal Analysis…………………………………………………………..………………………………………...17-23

                Current Strategy……………………………………………………………………………………………….17

                VRIN Analysis…………………………………………………………………………………………………...19

                SWOT Analysis………………………………………………………………………………………………….20

                Financial Analysis……………………………………………………………………………………………..22

Issues & Key Recommendation:

Issue #1: Under Armour is in a niche market.

        This issue is referenced in the ‘weaknesses’ section within the SWOT Analysis, which is found on page 12.  Under Armour has strategized themselves in a particularly small market.  This has constrained them from attracting more customers in the apparel and accessories industry.  They are currently restricted to sports apparel and accessories because this is their current business model and strategy.  This is inhibiting Under Armour from having the same size market cap as Nike.  Nike is more than four times larger than Under Armour due to the fact that Under Armour is solely targeting sports apparel and accessories, whereas Nike has expanded product line way beyond sports apparel and accessories.