• Author / Uploaded
• Nazibul Islam

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SWOT Analysis The SWOT analysis provides a clear summary of the strength, weaknesses, threats, and opportunities facing Under Armour. This analysis provides an in-depth combination of the internal and external environment surrounding Under Armour on a company level, and the entire industry. (see Appendix 5 for SWOT Analysis Chart). 1

Strengths: Under Armour is the leader in providing high tech undergarments for athletes competing in diverse climates using innovative technology, high quality of their apparel, their brand loyalty, in producing a moisture-wicking fabric geared to high demand of a narrow target market. Their ability in dealing with the pressure of changing industry conditions by creating opportunities using technology and honing in on product differentiation keeps them from losing market share to substitute products. As a result, Under Armour is gaining market shares at a higher rate than their competitors. They have one of a kind product that allows them to stay competitive in their industry. A big factor for their brand is that it is recognizable to consumers. It is simple in design, which allows consumers to easily identify the products. Under Armour inherits selling power through buyer’s loyalty to the brand. Under Armour’s customers are high end professional athletes paying for quick production of customized products based on Under Armour’s image and brand recognition.

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Weakness: Under Armour suffers from a variety of weaknesses which includes their lack of patent, international market, female market segment, product line in comparison to their competitors, limited number

of distributors, and the lack of individual customizations. Their lack of patent on popular cooling shirts provides Nike and Adidas a chance to make their own product with the same benefit. This is significant because they could lose their customers, and their competitors could come up with better products. Under Armour’s lack of international market presence provide its competitors an edge in the industry. 3

Threats: In an industry where competition is high, there are also significant threats such as, the need for product differentiation within the industry, high risk of substitute products, and high raw material expenses. Under Armour’s lack of patent poses a high risk since all of their products are at a high risk of substitution. Due to the degree of competition in the industry, a substitute product could drastically hurt their company and its market share. Also the price of Under Armour raw material is high since the company uses petroleum to produce most of their products.

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Opportunities: Irrespective of the many weaknesses faced by Under Armour, there are also many opportunities for growth in the industry. These opportunities include Under Armour’s customization and growing number of customers, innovation, growing population, and the expansion into international market. There is a growing population of staying in shape and going to the gym, which would bring Under Armour a lot of new costumers. Also the need for innovation within the industry provides Under Armour with more opportunities to outcompete its competitors.