Case Study- Under Armour

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Case Study 1: Under Armour- Challenging Nike in Sports Apparel Under Armour (NYSE:UA), a developer and distributor of athletic apparel, footwear and accessories, is an organization, which continually watches its stock rise-typically upwards of 15% per quarter. The organization has shown phenomenal performance over the past few years with the incorporation of new top line products growing by more than 20% over the last 12 quarters (Lewis). The organization is continually growing and this growth is fueled by its opportunity for expansion in footwear, women’s, international and direct-to-consumer business. While the organization’s growth story remains intact, this paper will look at how Under Armour stacks up along Porter’s Five Forces to understand and provide an analysis of where it can gain or lose going forward along with an analysis of its problem identification. Key Issues A SWOT analysis reveals many key areas in which Under Armour has determined a competitive advantage in strengths and opportunities, suggesting its innovation and expansion efforts into the Canadian marketplace will drive its revenue and profits margins even higher for the coming year(s). However, in viewing the weaknesses and threats-the heart of this analysis emerges as this area identifies key issues or concerns revolving around the organization. One major key issue is the fact that Under Armour does not have its own specific retail location, rather it has muscled with large companies such as Dicks Sporting Goods and Sports Authority to manage its branding and product lines-while this is a wonderful opportunity it also can be a huge risk for an organization not to hold its own position in the marketplace when it comes to distributing its goods and services. A major threat to Under Armour would be the highly saturated marketplace, with competitors like Adidas and Nike
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