Comprehensive Analysis on roadmap of strategic management
1) WHERE ARE WE NOW?
2) WHERE DO WE WANT TO GO?
3) HOW DO WE GET THERE?
4) HOW DO WE ENSURE OUR ARRIVAL?
Reviewing and summarization of university ranking system to.pptx
Strategic Management of Under Armour
1.
2. is an American company
that manufactures
Footwear, Sports and
casual apparel for both
male and female
clientele
INTRODUCTION
3. Founded in 1996 by Kevin Plank,
was called KP Sports. The name
was given when the company
went public on 2005
INTRODUCTION
4. MAIN IDEA BEHIND THE
GARMENTS ARE TO BE ABLE
TO WEAR WHEN IT’S HOT,
HEATGEAR® WHEN IT'S,
COLD, COLDGEAR® AND
ALL-SEASON® FOR ALL
OTHER SEASONS IN
BETWEEN.
INTRODUCTION
5. PRODUCT PORTFOLIO
PRODUCT PORTFOLIO
The company focus on apparels
for both genders of all ages. Main
market segment is Athletes but
there are some clothing options
made for general public as well
They produce many types of
t-shirts, shirts, shorts, sports bra,
jackets, printed Capri, girls Luna
tank pant, printed lagging, long
sleeve etc.
Main products are focused
on basketball players, football players,
boxers etc
At present, they have introduced a
variety of products for the general
public such as slippers, kids shoes etc.
in different types of colors, designs.
Product examples includes Gemini
Running Shoes, twist Running Shoes,
Fortis Running Shoes, Twist Running
Shoes, Zip Boots etc.
6. Focused on fitness accessories
Product examples include
UA iPhone 6 armband and case, Map My
Run Universal sport Armband, etc.
Activity trackers for sportsman mainly
focusing on the basketball players that
is compatible for their device products
like Jawbone, Mistfit Shine activity
tracker etc.
Activity watches such as Garmin
Forerunner.
UA also produces items such as
backpacks, handbag, sack pack
etc. [UA storm Camden
backpack, storm hustle muffle,
and extra sack pack.]
These products are made for
their entire market segment
therefore the fashionability plays
a huge role for them
PRODUCT PORTFOLIO
PRODUCT PORTFOLIO
10. SWOT ANALYSIS
WHERE ARE WE NOW? | SWOT Analysis
High quality of Apparel products
Skilled workforce who are innovative,
diversified and involve higher level of
technology
Endorsements with celebrity athletes
and Team sponsorships
Strong Distribution network with a
large number of outlets.
Limited international presence
Heavily dependent on Performance Apparel - 80%
sales
Low investment on research and development
compared to competitors.
Usage of non patent material
Higher days in inventory compared to competitors
- increased by 11% to $1.3 billion in 2019
Growth international performance
apparel market
Increased interest of women and
children on performance apparel
Growing consumer interest in
ecommerce space
Expansion into footwear market - grew
by 49% from 2016.
Competition within the industry is increasing
from industry giants Nike and Adidas
Diluted brand image due to high variety of
products
Increasing costs in supplier raw materials
Threat of new entrants coming in to market
Change of customer behavior and trends
11. TOWS ANALYSIS
WHERE ARE WE NOW? | TOWS Analysis
Use technology and celebrity base advertising
campaigns to increase global presence
Reach women and children market segments
through celebrity endorsements and
innovative product line up
Expand footwear market through innovation
and quality
Defeat lack of international presence by
expanding in to global markets
Invest more on research and development to
achieve more sales in footwear segment
Invest more on research and development to
increase ecommerce presence
Increasing global presence and more
investments in R&D to better compete with
competitors
Improve focusing on other segments apart from
Performance apparel to cater changing
customer behaviors
Investing in getting patent on UA products to
fight the competitors
Use the distribution network to drive off new
entrants to the market
Use of skilled labour force to come up with
cheaper alternatives to reduce increasing costs
Use technology and innovation to adapt and
respond to customer behavior changes
SO Strategies
WT Strategies
WO Strategies
ST Strategies
12. VRIO ANALYSIS
WHERE ARE WE NOW? | VRIO Analysis
Valuable Rare Inimitable Org. Support Implication
Potential sustainable
unused competitive
advantage
Competitive
disadvantage
Long Term
competitive advantage
Long Term
competitive advantage
13. VALUE CHAIN ANALYSIS
WHERE ARE WE NOW? | Value Chain Analysis
Structured Orgnization
Team Driven Management Model
Limited Capacity
Recruit and training to bring in new perspective an expertise
Constant innovation of technologically advanced products
Technology which controls the temperature of the T Shirt
ColdBlack technology , which lower temperature by absorbing UV rays
Depend on third party employees
Rely on 8 major suppliers due to technical advance requirements
Depend on third party
employees
Depend on third party
manufacturers
Competent Distribution
network
Wide network of
licensed partners
Usage of ERP packages
Celebrity endorsements
Team sponsorships
Consecutive growth in
sales
Reputed after
sales service
Higher focus on
customer
satisfaction
Strong
Strong Strong Strong
Moderate
Moderate Moderate
Moderate
Very Strong
14. PEST ANALYSIS
WHERE ARE WE NOW? | PEST Analysis
FDI Policies
(Foreign Direct Investment Policies)
OSHA
(Occupation Safety and
Health Administration)
FTC
(Federal Trade Commission)
USPTO
(United States Patent and
Trademark Office)
EEOC
(Equal Employment
Opportunity Commission)
Political changes under Trump
Administration
Growth of Performance
Apparel industry
U.S. and International
Economic Recovery
Inflation in China increasing
Chinese labor costs increasing
Increase in cost of raw materials and
resources
Consumers focus on quality more
than price
Increase in physically active women
Increase in health conscious
consumers
Sport participation is a
key aspect of U.S. culture
Aging population and increase in
physically active seniors
Obesity rates in U.S. show
people not physically active
Increase in sports participation
in emerging market
Shift in masses towards
healthy lifestyle
Increase in e-Commerce
Increase in m-Commerce
Wearable Tech
3D Printing
15. PEST SUMMARY
Least Most
WHERE ARE WE NOW? | PEST Summary
Growth of the performance apparel industry
(domestic and international)
Increase in sports participation in
emerging market (foreign markets)
Increase in commerce
(electronic and mobile)
Consumer focus on quality
more than price
Sport participation is a
key aspect of U.S. culture
Increase in cost of raw materials and
resources, shipping costs
Obesity rates
in U.S
International labor
costs increasing
Inflation in china
increasing
Increase in
interest rates
16. PORTER’S FIVE FORCES MODEL
WHERE ARE WE NOW? | Porter's Five Forces Model
Threat of new entrants
Bargaining
power of buyers
Threat of substitute
products or services
Bargaining
power of suppliers
Rivalry Among Existing Firms
17. With the expected growth of the
performance apparel industry, there
will be new entrants in the industry
from all over the world.
Most of companies who enter the
performance apparel industry are
unable to compete due to existing
brand loyalty and the high barriers to
entry.
How tackle the
Threats of New Entrants
THREAT OF NEW ENTRANTS
WHERE ARE WE NOW? | Porter's Five Forces Model
18. How tackle the
Threats of Substitutes
THREAT OF SUBSTITUTES
WHERE ARE WE NOW? | Porter's Five Forces Model
PA is not essential to
participate in sports
or physical activity
Potential Substitute
Products
Switching Costs
FACTORS
Enhance performance
and allow comfort
Low
Low
19. How tackle the
Bargaining power of buyers
BARGAINING POWER OF BUYERS
WHERE ARE WE NOW? | Porter's Five Forces Model
Core Athletes
BUYER GROUP
High
Bargaining power
Professional Teams High
Non-core Athletes Low
Non-Professional Teams Low
Recreational Buyers Low
20. How tackle the
Bargaining power of suppliers
BARGAINING POWER OF SUPPLIERS
WHERE ARE WE NOW? | Porter's Five Forces Model
Switching Supplier Costs
FACTORS
Moderate
No.of different Suppliers Very High
Product Uniqueness Moderate
Third Party Suppliers Very High
21. How tackle the
Rivalry Intensity
RIVALRY INTENSITY
WHERE ARE WE NOW? | Porter's Five Forces Model
No.of Competitors
FACTORS
Brand Loyalty
Industry Growth Rate Extremely High
Quality difference
between competitors
Moderate to High
PA Industry
High
High
28. CORPORATE
OBJECTIVES
WHERE DO WE WANT TO GO | Corporate Objectivces
MAKE A
GREAT PRODUCT
TELL A
GREAT STORY
PROVIDE
GREAT SERVICE
BUILD A
GREAT TEAM
ACT LIKE A
GLOBAL CITIZEN
THINK LIKE AN
ENTREPRENEUR
CREATE LIKE AN
INNOVATOR
PERFORM LIKE A
TEAMMATE
32. Lowest Highest Strong Weak
ANSOFF'S MATRIX
HOW DO WE GET THERE? | Ansoff's Matrix
2
MARKET
PENETRATION 3
PRODUCT
DEVELOPMENT
4 1
MARKET
DEVELOPMENT
DIVERSIFICATION
34. HOW DO WE GET THERE? | BCG MATRIX
HIGH MARKET SHARE,
HIGH MARKET GROWTH
GENERATE THE MOST CASH
FOR UNDER ARMOUR
CONTINUOUS INVESTMENT
ON STAR PRODUCTS
STAR
35. HOW DO WE GET THERE? | BCG MATRIX
HIGH MARKET SHARE,
LOW MARKET GROWTH
GENERATE MORE CASH
THAN THEY CONSUME.
CASH COWS
SHINE
TRACKER
36. HOW DO WE GET THERE? | BCG MATRIX
LOW MARKET SHARE,
HIGH MARKET GROWTH
CONSUMING A LOT OF CASH
BUT IS BRINGING LITTLE IN
RETURN.
QUESTION
MARK
BASEBALL CLIP
CLAP SHOE
RUNNING SHOE
37. HOW DO WE GET THERE? | BCG MATRIX
LOW MARKET SHARE,
LOW MARKET GROWTH
FREQUENTLY BREAK EVEN,
NEITHER EARNING NOR
CONSUMING A GREAT DEAL
OF CASH.
PRODUCT WAS FOR
BASKETBALL ATHLETES AND
IT WAS COMPARED WITH
WORLD WAR II.
DOG
BRAND OF
BALLERS T SHIRT
38. PRODUCT LIFE CYCLE
HOW DO WE GET THERE? | Product Life Cycle
PERFORMANCE
APPAREL
SPORTSWEAR
39. GE MCKINSEY MATRIX
HOW DO WE GET THERE?| GE Mckinsey Matrix
Strong Medium Low
High
Medium
Low
41. HOW DO WE GET THERE? | Key Performance Indicators
KEY PERFORMANCE INDICATORS
42. BLUE OCEAN STRATEGY
HOW DO WE GET THERE? | Blue Ocean Strategy
Create and capture
new demand
Uncharted Territory
Makes competition
irrelevant
43. 1996 1999 2015
1997 2013 2016
VALUE INNOVATION
HOW DO WE GET THERE? | Value Innovation
2006 2011
2002 2009
Stretchy, Skin tight,
Dry off sweat faster
Fabrics that keep
you warm in cold
conditions
Contract with movie
to supply UA prodcuts
for the actors
First line of
performance
underwear
First line of
football
cleats
Launch of its
performance
footwear line
A fabric that dries
faster
A thermo-conductive
lining retain body
heat
World's largest digital
fitness and wellness
community
Sensor built in footwear
to run without devices
45. STRATEGIC PARTNERS
HOW DO WE GET THERE? | Strategic Partners
JORDAN SPIETH
2nd youngest to win the
Mater Source -Golf
GISELE BÜNDCHEN
Fashion model from Brazil
Wife of Tom Brady
STEPHEN CURRY
NBA Most Valuable
Player in 2015
DWAYNE JOHNSON
Actor and former
professional wrestler
48. VIRGIN GALACTIC AND UNDER ARMOUR ANNOUNCED A
PARTNERSHIP TO CREATE A NEW GENERATION OF SPACE
APPAREL AND FOOTWEAR, AS WELL AS AN ASTRONAUT
PERFORMANCE TRAINING PROGRAM.
STRATEGIC PARTNERS
HOW DO WE GET THERE? | Strategic Partners
52. ORGANIZATION STRUCTURE
HOW DO WE ENSURE OUR ARRIVAL? | Organization Structure
High specialization
Rigid departmentalization
Narrow spans of control
High formalization
Limited information network
Low decision participation
Flexible rules for research
department
53. CORPORATE GOVERNANCE
HOW DO WE ENSURE OUR ARRIVAL? | Corporate Governance
Size and Composition
Offices of Chairman of the Board and Chief Executive Officer
Access to Management, Management Information and Counsel
Compensation of the Board of Directors
Committees of the Board
Lead Director
Board Meetings
54. The program must primarily promote or benefit society at large or
disenfranchised groups.
The program implemented should either benefit Under Armour in some way,
or not place an undue burden on Under Armour’s global operations, or put
their long-term survival at risk, as this would be an injustice to shareholders.
CORPORATE SOCIAL RESPONSIBILITY
HOW DO WE ENSURE OUR ARRIVAL? | Corporate Social Responsibility
55. HOW DO WE ENSURE OUR ARRIVAL? | Corporate Social Responsibility
“Power in Pink,” is a product line of activewear for men and
women featuring pink materials and embellishments,
designed to raise awareness about breast health.
The program has resulted in Under Armour being able to
provide a USD 10 million endowment towards the creation of
the “Under Armour Breast Health Innovation Center” at John
Hopkins hospital.
The program has also created social benefits such as
improved awareness of breast health.
At the same time company could gain business benefits
through connecting Under Armour’s ‘power in pink’ brand
with the powerful and recognizable public figures such as
athletes who are involved to support breast cancer awareness.
56. HOW DO WE ENSURE OUR ARRIVAL? | Corporate Social Responsibility
“UA Win,” seeks to “empower the athletes
of the NEXT generation by providing kids
in underserved communities access to
sport.
Under Armour accomplishes this by
promoting coaches to solve challenges,
working with communities to enhance
sporting locations for kids, investing in
activities that use sports to teach kids
lifeskills, and providing sports products to
children those who are not economically
capable enough.
57. UA freedom is a brand initiative developed to honor and
support US Military and public safety officials.It offers
continuous monetary, product and volunteer support to
military troops, police officers, firefighters and paramedics at
home and abroad.
Also offers those veterans and first responders discounts on all
Under Armour products, and partners with the Wounded
Warrior Project. They provide specially designed Wounded
Warrior Project apparel and fitness facilities to purchase.
A portion of these proceeds will be donated to the Wounded
Warrior Project and aid in their mission of honoring and
empowering wounded warriors. Consumers will also have the
opportunity to purchase an Under Armour Wounded Warrior
Project Backpack that will be presented directly to an injured
service member recovering in an overseas military hospital.
HOW DO WE ENSURE OUR ARRIVAL? | Corporate Social Responsibility