Swot Analysis Of Under Armour

Company Overview
In 1996, Under Armour,Inc. (UA) was founded by Kevin Plank as a former University of Maryland football player. Kevin Plank started his business with the idea of alteration athlete’s T-shirt. The shirt uses moisture-wicking fabrics to keep athletes cool and dry, and worked in a body to regulate temperature for enhancing athlete performance (Under Aumour, “About Under Armour” n.d.). Under Armour’s mission statement is to make all athletes better through passion, design and the relentless pursuit of innovation (Under Aumour, “Brand Mission”n.d.). Under Armour has developed different product for athletes to use in different seasons for men, women, and youth such as HeatGear that is designed to be worn in high temperatures, ColdGear, which is designed to be wore when the body circulate body heat from hotspot to the normal body temperatures, and AllSeasonGear, which is designed for wearing in changing temperatures (Under Aumour, “About Under Armour” n.d.). Under Armour develops, markets, distributes its apparels, footwear, and accessories for using in the athletics in various continents such as North America, Asia, Europe, the Middle East, and Africa. It is looking for expanding market in the future (Under Aumour, “Shop of Under Armour”n.d.). Under Armour’s headquatered is in Baltimor, MD. Moreover, it also operates in Canada, the United Kingdom, Australia and other 80 countries (Under Aumour, “Find a Retailer”n.d.). It distribute its products through retail stores and online.

SWOT Analysis
Strengths I: Superior Pricing
Under Armor prices maintain higher than its competitors with the majority of products that are able to raise its profits and margins. With the premium price, the company can compete with its comp...

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... its prices (Trefis Team, 2013). Moreover, petroleum price have a significant impact on its gross margin, as petroleum is one of a raw material of apparel product. In the past few years, the company had to face with the high oil price because of global economic that decreased its gross margin (Trefis Team, 2014).
Threat II: Wholesale customers hold leverage
Two large wholesale customers, Dick’s Sporting Goods and The Sports Authority, have an important role in Under Armour’s sale. The company’s revenues came from the two wholesale customers more than 20% (Trefis Team, 2013). The company has not signed long term contracts with the two wholesale customers, so the company will have a chance to gain loss of sale (Trefis Team, 2013). These two wholesale customers hold a power to bargain as they could substitute Under Armour products with other its competitor’s products.