The Report Examines Ua’s Performance in the Sports-Goods Industry and Proposes a Strategic Plan.

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Executive Summary

The report examines UA’s performance in the sports-goods industry and proposes a strategic plan.

Pest, Porter’s five and EFE matrixes are conducted presenting key environmental/industry factors that should be considered.

The CPM matrix revealed the weak global UA’s position, in contrast to its domestic performance.

The IFE matrix showed that despite its good financial results, the company relies heavily on one product category, has low international presence and small global market share, faces supply-chain, distribution, seasonality problems while, the majority of its innovations lack patent protection.

Based on the SWOT matrix, a number of strategic actions were proposed.

Since the industry grows less than 5%, UA was placed on the 3rd quadrant of the Grand Strategy Matrix. The proposed strategies were to commence either related-diversification or cost reductions by focusing on digital sales.

From the available options, two strategies were chosen to conduct the QSPM matrix. The scores were significantly higher for the related-diversification and international expansion rather than for related-diversification and domestic expansion.

Comparing the advantages/disadvantages of the two strategies, the recommended strategy was once again to expand globally undertaking related-diversification.

Finally, the report presents key aspects to consider with respect to R&D/HR/Marketing/etc. Indicative, it should enhance brand awareness and create loyalty though the development of IMC-mix(as Nike), continue sponsorships/endorsements, even consider limited-edition collections. It should not only pursue diversification for products/brands but also for suppliers/manufacturers. Filing for patents is vital, as well to create substitute products. Hiring exceptional managers is correct but it should be accompanied by the creation of an inspiring culture for its people. To follow the proposed measures, UA should leverage its good stock performance and raise funds necessary for the changes.

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Vision«To empower athletes everywhere».

Mission«To make all athletes better through passion, design and the relentless pursuit of innovation».

Objectives

• Reach 4$bn revenues by 2016.
• Ιncrease sales through wholesale-channels and expand international sales outside N.America(double revenue to 12% by 2016).
• Make high-profile recruits to boost brand/endorsements to expand to basketball-stars.
• Women’s sales to be 1$bn by 2016.
• Reach leadership position in every category.
• Footwear to overtake apparel and become the largest product category through new launches/technology.
• More global launches and DTC sales.
• Fitness application users to increase to over 100million.

Strategies

Growth

-UK/Germany/France launched e-commerce sites.

-Expand in China/Southeast Asia through store rollouts in partnership with local partners.

-Launched in several new markets notably Middle East/Philippines/Brazil/Chile.

-Connected fitness purchases reach customers worldwide(Endomondo, MapMyFitness).

Product line

-Expand product mix to include more products for women/youth.