4 Operations The majority of Under Armors manufacturing is outsourced to Asia

4 operations the majority of under armors

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4. Operations: The majority of Under Armor’s manufacturing is outsourced to Asia and Latin America. There are twenty-two manufacturers in seventeen countries, all evaluated on quality, social compliance and financial strength. There is also a manufacturing facility located in Glen Burnie, Maryland called the Special Make-Up Shop, where products for high-profile customers are manufactured (Wheelen, 2015). 5. Human Resources: Under Armour divided operations in two segments; first the company has a small manufacturing facility in Maryland which is called a “specialty shop” because its purpose is to manufacture products for their elite customers who need quick and personalized service. These customers include high profile athletes, leagues, and teams. The rest of manufacturing for the masses was outsourced to seventeen countries in Asia and Latin America. The company has a team who is in charge of evaluating contractors for “quality, social compliance, and financial strengths prior to certifying them” (Wheelen, 2015). UA has a good relationship with its employees, none of its operations are unionized. As of 2010 reports the company employs close to three thousand employees; half work in “manufacturing, specialty shops, and various company-owned stores,” while the other half work in “distribution facilities and the company’s headquarters” (Wheelen, 2015). V. Analysis of Strategic Factors
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9 A. Situational Analysis (SWOT) 1. Strengths: Under Armour is one of many firms to have products in the sports apparel and shoe industry. The company has proven itself so far as competitive with Nike, Adidas, and Champion. Comparable price points to the products available from these competitive companies give Under Armour the ability to have a larger market share. Under Armour’s edge on the competition is their performance apparel such as ColdGear and HeatGear implemented into men’s and women's products. The performance apparel offered by Under Armour is “a sub-segment of the sports apparel category, and had a 78% market” share (Wheelen, 2015). Another strength of the Under Armour that the market for sports-oriented and active health conscious people is large and growing. A focused CEO and COO ensure that the company stays on track with its mission and tackles competitive giants like Nike (Stock, 2013). Sponsorships is another area of strength for Under Armour. The company has recently had a few huge names sign deals with them to be sponsors. Having these big sponsorships help Under Armour get the attention of sports consumers, they see these stars representing and wearing UA influencing them to want to be just like the stars and also wear UA. ( Wheelen, 2015 ). 2. Weaknesses: Some of the weaknesses of Under Armour include their manufacturing processes and available discounts. Under Armour has essentially “outsourced almost all of its manufacturing to contract manufacturers in Asia and Latin America” (Wheelen, 2015). While product quality is monitored, having outsourced manufacturing could damper the company's brand. The company is “largely dependent on
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