A weakness that Under Armour faces is that Under Armour takes risks with high

A weakness that under armour faces is that under

This preview shows page 8 - 10 out of 14 pages.

A weakness that Under Armour faces is that Under Armour takes risks with high investment expenditures. Looking at the money that Under Armour has spent, it looks like the company is spending more money on investments and this can be a positive thing if the investments create revenue, but the down side is that it limits acquisitions and there is no guarantee that the investments will create revenue. This would be a minor weakness and would be rated at five percent. A weakness that is not often thought of is rapid growth. Even though this can be perceived as a strength, growing too fast can actually hurt a business. If the company is growing at a pace and the company can’t keep up then what is the point of expanding. Under Armour is definitely moving fast so the company needs to find a way to make sure that they can continue growing but with success. This would be a minor weakness and rated at five percent. External Analysis: The other part of the analysis focuses on external factors that may affect the company. These external factors are made up of opportunities and threats. One opportunity that Under Armour has is to become an international powerhouse. One of the strategies that Under Armour has is international expansion into China, Europe, and South America. With the expansion into these three territories, Under Armour should expect a total of about ten percent in its sales. (Sternthal and Malaviya, 2018) Under Armour should also explore the idea of expanding in other parts of the world especially those that Nike and Adidas don’t already occupy. This would be a major opportunity because growth of the business can lead to new doors opening and more revenue and profit coming in. This would be weighted at 20 percent because this is a huge opportunity that Under Armour can run with.
Image of page 8
SWOT ANALYSIS 9 Growth in the footwear industry can be an opportunity, but it would be a minor opportunity. The footwear industry is already controlled by Nike so trying to gain footing in that industry may be hard but doable. With partnerships from Stephen Curry and other NBA and professional sports player, Under Armour could potential gain ground on Nike. Also gaining ground on the international level could help boost brand awareness, which would then consequently bring consumers to buy Under Armour’s footwear products. This is a minor opportunity and would be weighted at ten percent because it is hard to get and stay in this industry. Another opportunity is thriving and taking over the women’s market. This is also a strategy that Under Armour has, and it is a very good strategy. A lot of the clothes and shoes that are found in stores are catered to the needs of men and what they want. Once in a while you will see options for women, but these options are small and not as well rounded. When you walk into a store the men’s side of the store is always bigger and has more options, unless the store is catered towards women. Having an athletic company cater towards the wants and needs of women will help boost their sales. Since 2010, Under Armour has started a campaign that is
Image of page 9
Image of page 10

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture