Market Analysis of Footwear Industry: Under Armour Case Study

Strategic Management

STRATEGIC MANAGEMENT 1
Contents
Introduction...........................................................................................................................................2
About the company................................................................................................................................2
Current Trends.......................................................................................................................................3
Gap in demand and sale.........................................................................................................................4
Consumer Preferences...........................................................................................................................5
Market Analysis....................................................................................................................................6
PESTLE Analysis:.............................................................................................................................6
Porter’s Five Forces Framework........................................................................................................9
Conclusion...........................................................................................................................................11
References...........................................................................................................................................13

STRATEGIC MANAGEMENT 2
Introduction
Strategic Management is a process of controlling, analysis and monitoring the environment of
the company. The company can develop the strategy in order to achieve the objective of the
company. It is necessary for the company to analyse the market before developing the
strategies for the good results (Doz, 2017). There are many tools which are used by the
companies to analyse the market. PESTLE Analysis, SWOT Analysis and Porters five forces
are the tools which are used by the company in order to analyse the market. These tools help
the company to identify the factors which affect the company. These tools also help to
analyse the opportunity for the company in which it can grow and grab the high market share
in the market. The report is based on the market analysis of the environment of the company.
Under Armour has been taken into consideration in order to analyse the external environment
of the market.
The main aim of this report is to identify the external and internal environment of the
company. In the starting section of the company, current trends and taste will be analysed of
the footwear industry. Later on the discussion is made on the preferences of the consumer and
in the last section; the analysis will be done on the footwear industry.
About the company
Under Armour is a manufacturing company of America which operates in the different
sectors such as sports equipment’s, footwear and the casual apparel. The main headquarters
of the company is established in Maryland, Baltimore and the other offices are located in
Austin, Amsterdam, Honkong, Guangzhpu, and many others. It was established in the year
1996 by Kevin Plan. The company starts its business by selling the products in the market by
using the car. The company is growing continuously in the market with the passage of time.

STRATEGIC MANAGEMENT 3
The company use the effective strategy to supply the large amount of products in the market.
The company expand its business in the different sectors but now it wants to grab the high
market share of Footwear industry at the international level. The company analyse the market
in order to develop the effective strategy so that the company can attain the high market share
(Reuters, 2018).
Current Trends
Global Footwear market is growing continuously with the passage of time. It is expected that
the industry will grow with the good amount such as $184.6 billion by 2020. The main
purpose of this industry is to offer the comfort to the consumers during the period of walk.
The global footwear market is growing due to increasing the health conscious consumers. It
is observed that the health conscious consumers are the main consumers of the company
which increase the demand of the company. The activities such as running, yoga, aerobics
and many others attract the consumers to stay fit for long time. It is a beneficial factor for the
industry to sell the products to that consumer who performs these activities. North America is
the largest country in generating the revenue in the market of sports and apparel. There are
any companies who have high goodwill such as Nike, Adidas and many others. The
companies expand the business at the international level in order to provide the services to
the consumer. United States is also has the largest footwear market in the terms of high
revenue like 79.86 billion in US dollars in the years of 2017. The footwear industry is
growing with the demand of consumer because nowadays people spent more money on their
dress up and looks (Cho, et al., 2017). The industry manufacture the different style of
footwear’s as per the demand of the consumers. The industry uses the leather, textile,
synthetic material and the other materials to manufacture the product. There are many
industries where the footwear are one of the main goods such as film industry as well as the