Under Armour.Inc Analysis

UNDER ARMOUR.INC ANALYSIS 1
Under Armour.Inc analysis
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UNDER ARMOUR.INC ANALYSIS 2
Part 1
Key decision areas for operational strategy
The company’s operational strategy is hinged to performance and protection. Its priority
is to focus continually on the elevation of the firm’s brand by meeting the expectations of both
the customers and the shareholders. It means an escalated agenda for innovation and driving
more stable connections through reliable strategies. Some of the plans include the creation of
demands, brand experiences, and the utilization of highly optimized chains of supply. (Dommer
2015). It also involves the improvement of service levels to keep up with the constantly evolving
global market. Simultaneously, the company seeks to balance performance and operational and
financial agility across its business portfolio to enhance consistent future growth. The core
elements towards its operational strategy include:
i. Focusing on innovative performance products for athletics.
ii. The shift towards consumer-centeredness via harnessing data analytics and science. It
involves building ties with the most extensive fitness and health communities in the
world connected through digital platforms. The plan is geared towards driving
consideration, preference, and engagement analysis.
iii. Utilization of the long-term opportunities for growth to alleviate investment levels
consistently. It includes footwear, direct-to-consumer, women's, and international
business. (Zhong et.al 2016, pg.572).
iv. Emphasizing retail excellence, customer conversations, and engagement digitally.
v. Brand protection via a premium, optimal, and selective distribution in wholesales.

UNDER ARMOUR.INC ANALYSIS 3
vi. Delivering sustainable and balanced growth earnings via cost efficiencies, expansion of
margins, and embracing initiatives for strategic growth to give continuous returns.
The company meets its objectives of cost, flexibility, dependability, speed, and quality
through various strategies. First, its targeted segments in the market have hugely geared success.
The firm started with compression shirts to the present-day international wear, footwear,
women's sportswear, and weather garments. (Brown 2017, pg.35). The tremendous expansion
over the years facilitates its delivery capabilities, competitiveness, flexibility, and entry to the
market. Currently, the women’s sportswear accounts for up to $1 billion of the company’s
revenue. The value is expected to rise by 50% in the future. On the other hand, the footwear from
the company has added up to competitiveness. Under Armour also employs new expansion plans
and better manufacturing techniques, thus ensuring high quality for its products. (Hofmann and
Belin 2011, pg.644). Lastly, the company has various amenities, including outdoor and indoor
sports facilities and gourmet options, thus dependable.
Part 2
Under Armour strategic position in its supply network
The company relies heavily on manufacturers and suppliers outside the US, especially
Hong Kong and China. Approximately 75% of the fabrics utilized in the company products come
from six suppliers, thus making them total control over the firm's inbound logistics. As such, the
situation alters the pricing strategy employed by the company. (Chernonog and Avinadav 2019,
pg.249). Under Armour processes the flow of products in 24 hours, thus meeting the
expectations of customers. The flow of orders is from the wholesalers to the distributors and
through e-commerce.