Under Armour Case Write Up

Problem Under Armour has become one of the most successful performance app arl grimes in the United States. Despite its recent successes, Under Armour does have a few problems that could adversely affect its future gross sales. One general environment pop is how the current economic situation in the United States will affect Under Armours sales. As consumers change their buying habits it could hurt its sales severely. Two, Under Armour needs to consider how its lack of a diversified supply group impacts its bargaining power. Roughly 75 percent of its fabric is purchased from plainly six distributors.Three, the company should consider diversifying its product line beyond its current sports app arl majority. Under Armour doesnt have as much brand recognition in spring/summer sports such as soccer and basketball. Lastly, Under Armour should be more aggressive in expanding to European and Asian markets. Currently, Under Armour heavily relies on U. S. market and there are tremendous p otential consumer power in Europe and Asia. General Environment summary There are a variety of antithetic external factors that influence the amount of success Under Armour is able to achieve.One of the biggest factors negatively affecting the fuddled is within the economic sector. Consumers are spending less money in the retail market. This decrease in spending is causing a broader economic downturn. As a company who sells its products at premium prices, this downturn threatens to damage the companys sales and decrease profits. There are also several different opportunities offered by the general environment. Under Armour products are useful to athletes. Regardless of the country in which a sport is played, high quality, breathable apparel and durable, innovative equipment are always useful.Because of the cultural transcendence of its products, Under Armour is pursuing international diversification. Their strategy is one of regionalization, allowing top managers within each regi on to run approximately like a subsidiary, reacting to local preferences and competitors. Researchers have found that international diversification can lead to greater operational efficiency, which ultimately leads to higher financial performance. The go toward a more global firm should help the firm to grow, increase profits, and improve brand recognition worldwide. Additional threats and opportunities facing Under Armour are exhibited in Appendix A.