Under Armour's SWOT Analysis. Free Essay Example

Published: 2023-11-15
Under Armour's SWOT Analysis. Free Essay Example
Essay type:  Quantitative research papers
Categories:  Leadership analysis Company United States SWOT analysis
Pages: 4
Wordcount: 1069 words
9 min read

SWOT Analysis


The greatest strength of UA is its growth rate during the past decade. In 2007, the company had a revenue of 606 million dollars and could not compete against major brands like Nike. However, the organization has grown rapidly within the previous years, and currently, UA has revenue of five billion dollars. The company has also adopted the strategy of using athletes to endorse their brands; Stephen Curry is the face of UA, which is a vital aspect of the company’s creditability. In addition, the organization is using the highest-paid actor in Hollywood Dwayne Johnson for marketing campaigns and other developments such as Rock I sneakers. In recent years, UA has invested nearly 700 million dollars in acquiring connected fitness firms such as Endomondo and MapMyFitness. The current CEO, Kevin Plan, takes Connected Fitness very seriously; he claims it will essentially affect global well-being. The CEO has stated that the company will produce nearly 50 billion retail products that are integrated with a linked chip by the end of the year 2020 as part of the project.

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The first major weakness of Under Armour is the recent implementation of a plan costing nearly 220 million dollars. The plan is meant for the restructuring of the company in an attempt to improve its business operations and organizational performance. Another flaw is that the organization is working to lay off three percent of its employees and reduce the cash-related cost of 70 million dollars for all workers. The significant cost reduction will affect the company’s ability to reach capital outlays. In the North America region, UA’s revenue was down five percent despite the company’s general revenue rising by three percent in the year 2017. UA tends to lack an effective marketing plan, hence limiting its chances of reaching full potential as an apparel brand. The company lacks online representation, which affects its popularity among the youth.


In 2006-2007, the company began its footwear section that was a big success and generated maximum profit. However, UA has to utilize the opportunity since it has a market share of below three percent in the footwear industry. Another opportunity for the UA brand is to maximize its international growth. The company became public while generating just two percent of the revenue outside North America. The revenue has increased to 21.7 percent over the years; thus, a majority of investors should expand and grow its international market share. Most sports apparel companies tend to concentrate on men consumers. UA has few male athlete endorsements, which gives it an opportunity to expand their demographics and include women and children. Finally, online trading is expected to dominate the United States, with revenues expected to reach 736 billion dollars by 2023. Therefore, UA, having invested in numerous E-commerce websites, can use the chance to obtain user data that can be used to develop an effective strategic plan.


There are a majority of threats that can be observed when scanning the environment surrounding UA. First is the tough competition experienced by established brands such as Nike and Adidas. The product value is also vulnerable to lower-cost substitutes provided in the market by other producers. The company’s credibility is affected by its dominant male focus, whereas it is viewed as a public trade company. The company sales have been limited by the Corona Virus pandemic, which has slowed down all business operations around the globe.

Marketing Objectives

After analyzing the revenue of company sales, 80.2 percent of the total sales come from apparel, whereas only 12 percent is from footwear. The first marketing objective is ensuring the footwear products can compete in the market against Nike and Adidas.

UA distributes most of its products through wholesale in North America; the aspect makes it hard for the majority of consumers to access its products. Thus, it would be vital that the company develops retail supply shops across the region to enhance distribution.

Only a quarter of the company’s income comes from sports goods stores and the sports authority. The company could develop a strategy to market its sports apparel and enhance its sales in that sector. This could work by launching brand campaigns using popular athletes in the National Basketball Association, such as Kevin Durant.

The UA brand could also use women and children in their endorsement deals to attract more customers from the neglected population. Women tend to support brands that empower that advocate for gender equality. Children will also favor brands that are endorsed by young role models such as Jaren Jackson Jr.

Marketing Objectives

The UA brands target the general population of individuals involved in various sporting activities. The products are created for people of varying age groups, gender, and social classes. The young population consumes around 10 percent of the company’s products. However, the largest consumer group of UA products is the youth aged 18-30; the age group tends to incorporate energetic individuals who participate in sports activities of different kinds. Individuals above 30 years also consume around 20 percent of the total goods produced.

Another consumer group targeted by the marketing strategists is the women and children involved in various sports. The growth of women sports has been rapid in the recent past with major brands developing women leagues and tournaments. The UA Company will target to fill the gap created in that particular field. The situation is similar in children, as many people are getting to accept various sports activities as career choices. The market for sports attire is predicted to increase rapidly, especially after the Corona pandemic.

Other targeted users are the sportspersons around North America, where the brand has lost popularity in recent years. The marketing team will work to close the gap between Nike and Adidas across the region.

Unique Selling Proposition

The sales and marketing teams will devise major brand campaigns across North America. The tactic is to use premium prices for high-quality products for consumers. With the existing economic gap due to the global pandemic, consumers are likely to consider more financially friendly brands that are produced with quality designs.

The strategy also involves using inclusive takeaways as a part of major brands. The aspect is to attract consumers that are indecisive of preferable brands. Combined with unique branding, the company will attract a large number of consumers by using such an approach. For instance, they can offer a cap for every set of shoes.

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