Under Armour Case

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Step 6: Strategic Challenges Major problems: 1)Protecting product differentiation Because of the fact that Under Armour does not have a patent on any of the materials used in its products, if they are not careful there know how can be stolen and other companies can implement their own versions of their products. 2)To concentrated on one market (Economic Downfall) The current economy in their major market the United States is on a slippery slope and this is dangerous because 93 percent of their sales is based in the United States with only 7 percent being international sales. Putting all their eggs in one basket could make them to reliant on one market and stuck with no plan b. 3)Major Competitors and upcoming competitors Other companies have the capital power giving them the ability to imitate Under Armour's product versions. Also the athletic apparel industry has small barriers to entry, so at anytime, just like Under Armour, did another company could explode onto the scene. Minor Problems: 1)Male Dominant Focus Under Armour men's apparel made up the “lions” share of sales, representing 68 percent of apparel sales and women sales only accounted for 23 percent. 2) Seasonality “There appears to be a trend that sales are higher in the third and fourth quarters of each year, alligning with the football and basketball seasons.” Step 7: Action Plan for solving Major problems: 1)Protecting product differentiation As the book states, “It needs to be cautious in its licensing agreements so that companies do not steal its know how and introduce their own versions”. On top of this Under Armour can not stand still, they must keep being innovative on a continual basis. Examples are, Creating new specialized products to meet customer needs, upgrading their services, and having excellent total quality management programs, all these things will

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