Integrated Capston Project

This presentation discusses the issues faced by Under Armour, its competitors, driving forces, SWOT analysis, diversification strategy, marketing approach, and recommended solutions. The presentation also includes a plan for future study and references.

Integrated Capston Project

Introduction
The market is growing day by day;
competition within the market is high in the
current situation as compared to the
previous.
The reason behind this enhancing
competitive environment is innovativeness
for meeting the needs of the people.
Multinational companies are seeking
competent and innovative strategies and
approaches for increasing their demand
and popularity across the world.

Background of the company
Under Armour, Inc is a well known company in
America
Firm was established 22 years ago in 1996 by Kevin
Plank
In 2017, the revenue of the company was US$ 4,977
million with the total assets of US$ 4,006 million.
The tagline of the firm is “I Will” which represents
the origin of the organization
The products of Under Armour such as gear are
designed for keeping the athletes cool, dry and light
during their entire course of game, practice or
workout

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The diversified approach of UA includes the
following
wear HeatGear when it is hot
and ColdGear when it is cold
AllSeasonGear are available for the people
who love to wear footwear in all seasons
The mission: to develop effective and
innovative footwear for all athletes

Competitors
The competitors of UA consists of the
following:
Nike
Adidas
Puma
Reebok

Issues
Limited marketing of the products
No Geographical diversification
Low brand awareness at global level
Major attention to the apparel only which
limited the growth and success

Detailed Analysis
Porter’s Five Force Model
Competition: Intense
Threat of new entry: Moderately High
Threat of substitute items: High
Bargaining Power of buyers: High
Bargaining power of suppliers: moderately
high

Driving Forces
Societal Trends
Changing attitudes and lifestyle of people
Increasing health consciousness
 Increasing participation in sports

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Innovation within the products
Changing technology
Increasing use of lighter footwear
Increasing varieties like garments, fitness
gadgets, different footwear according to sport

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Marketing Innovation
Connection of advertisements to the social
factors
Use of digital marketing
Selection of celebrities for promoting
products
Use of innovative ideas and creative images
and designs for making the advertisements
and marketing eye catching

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Globalization
The market for the sports apparel has
become global, and companies are promoting
their products at the international level
Company is also facing the problem of
expanding its business in the different
regions of the world.
Firms like Nike, Adidas promote their
footwear in such games for grabbing the
attention of the customers

SWOT
Strengths
Innovation: The company is using innovative
technology for gaining competitive advantages
Product Portfolio: the firm is expanding its
product offerings among the additional market
segments.
Weaknesses
 Lack of geographically diversification: The company is
offering its services and products to the limited regions
 Limited Marketing: The Company is conducting limited
promotions of its products as compared to the Nike,
Adidas, Puma and many more.

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Opportunities
 Technology: With the increased use of internet and
mobile applications, the market has become
technologically advanced.
Threats
 High Labor Cost: Raising fees and price can have an
impact on the apparel industry which can affect the
working process of UA
 Low Barrier to entry: The capital investment for
entering into the apparel sector is low which provides
new players with an opportunity to take advantage of
it by coming to the market

Diversification Strategy
Limited corporate diversification strategy
Maximum business activities comes under
the sports performance sector
Major emphasis on the apparel sector
Strategy is completely different from Nike
Nike has different markets in the sports
sector
Niche of Under Armour is small
Company needs to expand its business

Difference between marketing
approach of Nike and UA
Nike represents it as a mighty king whereas
UA acts like an underdog
Nike pays attention to the democratizes
fitness whereas UA focuses on the
professional athletes
Nike helps in proving yourself right, and UA
helps in proving others wrong

Recommended Solutions
Use of digital marketing
Promotion of tagling I will
Working for expanding the business at
international level
Need to expand product line for increasing
profit
Diversification in products will reduce the
risk associated with the limited items
Acquisition or integration for producing raw
materials internally

Marketing efforts of UA
The firm uses the concept of “will” in its
every role.
Women of Will
Rule Yourself
Slay Your Challenge Campaign

Plan for the future study
I would like to do further course in
marketing
The study has increased my
interest towards the marketing
area
I will develop my skills and
knowledge in the field of
marketing for getting job in the
respected area.

Conclusion
With the help of appropriate solutions, the
company will able to resolve its issues
Recently the firm has gained competitive
advantages by using effective digital
marketing strategy and gained 2nd rank in
US

References
Bolos, C., Idemudia, E. C., Mai, P., Rasinghani, M., & Smith, S. (2016).
Conceptual models on the effectiveness of e-marketing strategies in
engaging consumers. Journal of International Technology and
Information Management, 25(4), 3.
Flynn, P. (2015). Nike Marketing Strategy: A Company to Imitate.
Grady, J. (2016). Predicting the Future for Rio 2016: Legal Issues in
Sponsorship, Ambush Marketing, and Social Media. ESLJ, 14, 1.
Tuten, T. L., & Solomon, M. R. (2017). Social media marketing. Sage.
Wear, H., Heere, B., & Clopton, A. (2016). Are they wearing their
pride on their sleeve? Examining the impact of team and university
identification upon brand equity.
Grady, J. (2017). Analyzing Rule 40's Restrictions on Using Athletes in
Olympic Sponsorship at Rio 2016. ESLJ, 15, 1.
Fraga, M. A. (2016). Audience Emotion & Experience as a Source for
the Development of New Marketing Strategies for Concert Dance.