Question

In Chapter 3,(Crafting & Executing Strategy The Quest for Competitive Advantage, Concepts and Cases, 21^st Edition, Arthur A. Thompson, Jr., Margaret A. Peteraf, John E. Gamble, and A.J. Strickland III, ISBN 978-1-259-73278-2) we discuss two important strategic planning tools: PESTEL analysis and the 5 Forces analysis. We also discuss the facts/implications/imperatives process for identifying strategic action.  Using the Under Armour case, please answer the following questions in your initial post:  

1. List the most relevant facts to consider in future planning for Under Armour. What are the implications of the facts you identify?

2. What imperatives do the implications suggest? And finally, what subsequent strategic actions would you recommend?

Answer 1

Although the company started in a basement, they have overcome many obstacles financially to have a continual growth in sales. The founder has been successful in developing new and innovative gears and apparels to help stay ahead of their competitors. Under Armour finds it extremely important to maintain relationships with their managers and more importantly with professional teams. The company has prided itself on maintaining a competitive advantage by always having top notch products and adopting new strategies and ideas to outcompete the rivals. The company strategy and initiatives clearly seems to be working since Under Armour is able to compete with Nike and Adidas. Under Armour mainly markets to people with active lifestyle, as a result the company made it a priority to be a major player in the life of people who play sports or enjoy being physically active globally. Some competitive advantages enjoyed by Under Armour are the amount of fitness product they offer. Also the ability to recognize the company is simple because their logos are easy to identify. With the strong brand loyalty and the cost advantage that the company has, it is evident that the company will expand in domestic as well as international market. The company needs to expand their target market from national to international and develop clothes for people interested in a more casual look. The company should move from the performance based apparels to a more diverse set of product segment which include athletic and sportswear. The fact that Under Armour narrows its product to athletes makes the company to lose customers to their competitors who sell both athletic and casual wears. Introduction Under Armour is a profitable and ‘well-known company whose strategy and initiative edge has giving it a greater recognition and attention. My analysis starts by looking at a summary of the current situation i.e. the strategic posture and the current financial performances.

recommendations that when properly executed will provide a significant and continued competitive edge to compete in the 21st century. Summary of the Current Situation This section provides a summary of the current situation, current financial performances and posture. It provides a clear inside on Under Armour’s aggressive push that involves many steps to further the company’s accomplishments. Some of which includes promotion and marketing, evolving sales strategy, increase presence in the retail market, networking and referrals, widening its product offering, targeting team managers.

Under Armour main focus is to “make all athletes better through passion, design, and relentless pursuit of innovation”. The goal is to empower athletes everywhere. This approach is very successful in that the company is constantly coming up with new merchandise for consumers so as to outcompete their biggest competitors.

Their main objective is to have “universal guarantee of performance”. Under Armour is determining to dominate the market since every product that they put out must be better than what is currently out in the market. Their main goal is “best in class”, since the company is determined to increase its presence in the retail market.

Growing buyer preference for the apparel that is differentiated from the rest: Furthermore, a decrease in consumer spending as a result of the current weak economy has made consumers to become very critical in making choices. As a result of these, Under Armour has got to continue to provide a superior product so as to convince today’s customers of the value of their brand and the quality of the product they are paying for. Providing consumers with the assurance of a better brand equity needs to be the focus of all marketing communicators. An increase in the unemployment rates that has not only affected the United States, but also the rest of the world and Europe in particular as dramatically decrease the net income of Nike and Adidas thus providing Under Armour a chance to compete on a central stage as it makes more of its revenue in the United States.