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Hailing from Baltimore, USA, Under Armour (started in 1996) is a company which manufactures footwear, sportswear as well as casual apparel. They also have created various fitness apps to help people stay healthy.
It became a multibillion-dollar brand under the leadership of Kevin Plank, who is the founder and was the CEO from its inception till 2020, when the COO Patrik Frisk replaced him. Recently, Under Armour has had to shut down stores because of the Covid-19 pandemic, which has been a massive blow for them as it has been for many businesses, making the Under Armour case study very interesting.
We’ll work out an Under Armour SWOT analysis to see where it is standing in 2020 but first, let’s understand what a SWOT analysis actually is.
SWOT Analysis of Under Armour
Lookout; the FBI is after you! Just kidding, no need to get your knickers in a twist; you’re safe. You see, SWOT essentially stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is what you conduct when you’re interested in learning about the standing a particular company has in the marketplace; it is a great way to assess and understand the competition a company has.
Let’s take the example of Uber to understand SWOT a bit more closely. You can book a ride from anywhere to anywhere anytime. This is definitely the strength of the company.
Since smartphones have become a staple product in every household, Uber took the opportunity to introduce an app that can easily be accessed and used by any smartphone out there.
However, cabs are still a worthy threat for Uber because many people belonging to the older generations, albeit use smartphones, are not very tech-savvy, and many of them prefer the traditional cab services because of the familiarity. So Uber might be a dominant player in the market for young people, but they still have a way to go to replace cabs completely.
A considerable weakness they have is the occurrence of harassment cases faced by many customers worldwide, which puts a bad rep on them. People are often skeptical about booking an Uber in fear of getting stuck with the wrong kind of driver.
Let’s take a look at a SWOT Analysis template to get a better hang of what we’re working with here:
|Favourable||Strengths · Uber is very convenient because of its availability and ease.||Opportunities · Uber has an app compatible with every smartphone making it a staple in every phone.|
|Unfavourable||Weaknesses · Frequent harassment cases at the hands of the company employees.||Threats · Not the number one choice for people who aren’t tech savvy.|
This is a very basic SWOT analysis of Uber aimed at making clear how to actually do one. Here’s a more in-depth analysis of Uber.
Let’s now see where Under Armour falls based on this analysis.
What are Under Armour’s Major Strengths?
The coolest thing about the brand is that it has managed to have a global presence with its key locations in North America, Asia Pacific, EMEA, and Latin America. The Under Armour business model has managed to survive and prosper amongst competition because of the brand’s diverse distribution channels, portfolio, and exceptional quality clothing.
We have a strong appreciation for Under Armour marketing strategies, always apart from the clutter. The core strength of this brand is the revolutionary T-shirts they manufacture, which are comfortable, light, and very resistant to sweat, perfect for athletic people who like to stay fit.
This has eventually paved the way for Under Armour to be a step ahead of the competition in the sports apparel industry. Now that the company has gone digital by creating their fitness apps, they can claim to be the biggest fitness company globally.
What are Under Armour’s Major Weaknesses?
They already had fewer physical stores worldwide, to begin with, compared to the Under Armour competitors such as Nike, but this recent pandemic has made things much worse for the company.
Sales declined a whopping 41% post-COVID-19, and many financial experts presume they might sink an additional 25%.
Whereas the Under Armour target market consists of both men and women, they don’t seem to be the number one choice for women athletes. They also sell their stuff at hefty rates, which put off many potential buyers. There aren’t many options to customize Under Armour apparel and accessories, either.
What are some opportunities for Under Armour?
The “fit” lifestyle is becoming more and more popular with each day, so it is an industry full of potential for Under Armour. With fitness enthusiasts and influencers increasing daily all over social media, the fitness world continues to grow without any plans of stopping.
The Under Armour target market can easily be expanded to include a kid’s range too. They also can diversify their product line and venture out into different types of sports to grow even further.
They can also work on marketing strategies to attract female consumers to whom they cater to but somehow don’t appeal to, not as much as they could at least.
What are Under Armour’s Major Threats?
Their core competency of sweat-proof T-shirts is no longer specific only to this brand; the competition has caught up, and this type of design in apparel is available in other brands, often at better prices too.
If the brand doesn’t think of a way to rise above the competition, they could be in serious trouble. Moreover, the biggest threat they face, like any other business, is Covid-19, which has severely affected their work.
Under Armour SWOT Analysis: Conclusion
Under Armour has been a player in the sports industry for decades now, and they have seen a very long period of constant highs.
Despite the potential threats faced by them, especially in light of the pandemic, we believe Under Armour still has the potential of becoming a key competitor for other similar brands, provided they play on their strengths and divulge into the opportunities effectively.