The First Strategic Issue That Ua Has Not Having Sufficient International Appearance On Overseas Markets

The First Strategic Issue That Ua Has Not Having Sufficient International Appearance On Overseas Markets

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Diagnosis
The first strategic issue that UA has is that they do not having sufficient international appearance on overseas markets other than Canada and some European countries. By way of example, according to their CEO Kevin A. Plank’s own words, UA have not sold a single t-shirt in China in 2010 (Subramanian and Gopalakrishna). That is to say, UA has not expanded into Chinese market which is considered be one of the markets with the most sales potential overseas. This is problematic because only focus on relatively narrow areas limits the ability for UA to explore potential opportunities for sales growth. In addition, this position makes UA to be even less competitive compare to their major competitors such as Nike and Adidas which generated most of their profits from international markets.
Analysis
To further analyze this problem, we compared some statistics of UA’s international sales with one of their major competitor, Nike. In 2013, Nike generated approximately $27,000 million revenue in total, and more than 50% of that revenues were earned from their international market (“Nike 's revenue worldwide”). In comparison, UA generated approximately $2,200 million revenue in 2014, and only near 6.5% of their revenue came from international market (“Net sales of Under Armour worldwide”). The pattern was generally the same in 2014, where Nike had over a half of their revenue generated from international markets and UA, with a slightly increase, had around 9.6% came from their overseas markets. From those statistics, we can conclude that, in terms of sales, UA is not in a competitive position compared to Nike either domestically or internationally. The fact is even though domestic market is difficult for UA to compete with, internati...


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... working with two biggest Chinese social media and sponsoring Chinese dramas, UA’s brand name will become more well-known in China, and Chinese consumers will become more aware of the presence of UA. This will allow UA to grab more market share and generate even more profits from China, and potentially have an opportunity to compete with one of their biggest competitor, Nike, which achieved 23% growth in China in the first quarter of 2016 (Symington). In terms of other foreign markets, by sponsoring sports that are popular in each country, UA will be able to increase its international presence and create positive brand image, which ultimately will allow UA to earn more profits and further improve their international expansion. Even though the marketing expenses definitely will increase, the benefits associated with those actions will be much profound and significant.

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