3. Analyse the current corporate – and business-level strategy of Under Armour:
Any company strategyis the action plan for outperforming its competitiors and achieving superior profitability through actions to gain sales and market share via more performance features, better quality and wider product selection. The goal is to achieve the competitive advantage of outcompeting rivals on the basis of differentiation features such as higher quality, added performance, more attractive styling and technological superiority. The Under Armour brand is advertised as higher quality and can enjoy the advantage of higher price points. Their new running shoe line will be marketed to adhere to the Under Armour brand position of quality and innovation. This is the foundation for the marketing plan for the shoe line.
For more than two decades Under Armour, brand portfolio gives lucidity, vitality, differentiation from the competitors in the highly complicated focused market. Under Armour has marked their product line strategy into diverse product line, for example, Infrared, Cold back and Mag Zip and has dealt efficiently with each of those brands. They have likewise given cognizance umbrella brands, for instance, UA Heat Gear, UA Cold rigging, and UA Glow Collection. This strategy differentiated the branch of business level strategy. Recently Under armors shifted their strategy mostly focused on Vip athletes. This concentration technique of Under Armor has effectively extended their business. Under-Armor is additionally endeavoring to extend by offering more items to ladies. Under Armour's new line up for women apparel concentrated mostly on ladies clothing offering more products to women. There have been different new ads including ladies with the trademark, "Regardless, sweat each day." this campaign promoted newly launched Ladies tennis shoe division.
Under Armour has developed itself into a desireable band among athletes. They have properly leveraged its resources, capabilities and core competencies while taking cautiously taking advantage of its external environment. With its first more advantage, it has captured a respectful portion of the performance apparel market. However, as the company grows and rivals catch up in this market, Under Armour need to use its powerful leadership to build a more potent business and corporate level strategy if it wishes to contend with the like of Nike, Reebok or Adidas. Under Armours CEO Kevin Plank believes that financial performance, resources strengths are the most important factors need to emphasize to grow company even further. In global markets new online deals and stores are expected to boost the sales. Under Armor will likewise participate with some accomplice organizations. For instance, so as to grow EMEA's market Under Armor pitches their items to the neighborhood merchants and participates with the outsider coordinations with third party logistics.
In terms of a corporate –level strategy, Under Armour is still young and small so it practices a low level of diversification. In U.S. itself more than majority share of sales comes from apparel products. Unlike their competitor nike they don't have distinct, separate business units based on sport. While the company's still in its infancy stage, it should eventually adopt a related constrained diversification strategy in which sports is its own unit, but it shares the resources of the entire company. Moreover, it needs to continue its recruitment of experienced international business managers to oversee and lead these divisions.
For International expansion plan Under Armour planning to introduce their product globally through brand –building strategy which was successful in North America. As part of short term strategy selling products directly to the teams and individual athletes will help to increase their market share. In long term Under Amour's vision is to grow business by expanding wholesale distribution and direct to consumer sales channel in international market through increasing sales of apparel, footwear and accessories.
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