Essay Example on Under Armours Turnaround Strategy

Can't deal with your essay? Need a quick, creative
solution? Never too late to get it done by pro essay writer.

Calculate Price
Approx. price
free samples
happy students

Sample Details:

Pages: 12

Words: 2618

Date Added: October 14, 2022

General Introduction

In 2018, Under Armour saw a decline in sales and stock value. The company that once dominated the professional sports and streetwear world struggled to keep up with the competition (Senteza et al., 2020). This case study explores Under Armour’s turnaround strategy and how it managed to turn things around. It also looks at how the company’s unique selling points (USPs) helped it stay competitive in a changing industry. This case study will explore the company’s turnaround strategy and how it used technology to improve performance. By using data-driven insights, Under Armour could identify areas where it needed to make changes to improve its business. The company’s turnaround strategy is an excellent example of how technology can be used to improve performance and create a competitive edge.

Overview of Under Armours

Under Armour (UA) is a sports apparel company founded in 1996. The UA brand specializes in athletes’ sportswear, footwear, and accessories (Torres et al., 2021). UA has an extensive athletic clothing line, including performance clothes and casual wear for men, women, and youth. The company also produces shoes and accessories such as backpacks, hats, water bottles, and towels.

Significance of Under Armours

Under Armour is an iconic sportswear company that has become well-known for its high-quality and innovative products. Wright (2019) said that the brand provides apparel and accessories to support athletes. UA’s clothing is often popular with recreational athletes and professionals in various sports, making it a preferred choice among consumers.

What is the industry of Under Armours’

The industry of Under Armour’ is the sports apparel sector. The company produces a wide range of athletic clothing, including performance and casual wear for men, women, and youth. Additionally, they have shoes and accessories such as backpacks, hats, water bottles, and towels.

Competitors of Under Armours’

Under Armour’s main competitors in the sports, apparel sector are Nike, Adidas, and Reebok. Other companies that may compete with UA include Lululemon, Under Armour’s Canadian subsidiary, and My Sportswear.

Purpose statement

This case study aims to overview Under Armours’ competitive landscape in the sports apparel sector and analyze the Under Armours brand’s strategy.

Industry Attractiveness Evaluation

Under Armour’s market has been growing at a CAGR of around 7 percent over the past five years. The market is projected to reach USD XX billion by 2025, with a growth rate of 9 percent. The profit margin of under Armour is relatively high, and the industry makes a healthy profit even with moderate sales volumes. It means that there is ample room for further growth in this sector. Henceforth, the profitability should stay stable or increase marginally over time as consumer demand remains robust. The intensity of competition in a market is the degree to which intense rivalry exists among companies for customers’ business. The power of competition of Under Armours’ s competitors was also a contributing factor to the company’s decline. Under Armour’s competitors were more intense in terms of competition, and as such, this caused Under Armour to lose market share. Under Armour has long been an established player in the sport and leisurewear market, with a strong presence both online and in physical stores. The company is well-funded and has a solid distribution network in place.

However, Under Armour has several emerging opportunities as the global economy recover. A growing middle class in developing countries increases their demand for sportswear and other leisure products, allowing Under Armour to expand into new markets. At the same time, companies such as Nike and Adidas are seeing their share prices decline as consumer spending decreases, providing Under Armour with an opportunity to increase its market share. Meanwhile, several threats facing Under Armour could eventually undermine its business viability. For example, if global economic conditions worsen and consumers reduce their spending on sportswear products, this could harm Under Armour’s sales and financial position.

Product innovation includes Under Armour’s safety gear for cyclists. It has manufactured and sold safety gear to cyclists for over 20 years. In 2007, the company introduced a new line of cycling suits called the Assasin. The Assassin line features Armour on the hip, shoulder, and elbow areas to protect cyclists from injuries in collisions with cars or other bikes. Under Armour’s Assassin suits are designed specifically for cycling, which means they fit more comfortably than traditional cycling gear and are less restrictive than other suits.

Under Armour is a company that manufactures coats and jackets. Social, political, and environmental factors are essential in Under Armors’ decision-making regardingits products. Social factors include the fact that they manufacture items that everyone can wear, regardless of social status or income level. It allows people from all walks of life to feel comfortable and stylish in Under Armour clothing. Political factor includes their support for American-made products, which is a big issue in today’s economy. They also strive to be environmentally friendly by using sustainable materials and processes when creating their products.

Business Unit Competitive Strength Evaluation

Under Armour has a broad range of products, including clothing and equipment for athletes and casual wear. Under Armour has men’s and women’s clothing, gear for gym athletes, and casual wear. Their products target various audiences, including young people, parents, active adults, and professionals. Under Armour also manufactures sports equipment such as basketball shoes and helmets (Bicho, 2018). Under Armour is known for its sportswear brand. Its brand awareness and reputation are good. The range of celebrity endorsements and sponsorship of sporting events is varied. Sports such as cycling, cricket, football, and motorsport are all well supported by stars. Under Armour has targeted a broader market to appeal to with this portfolio, including athletes who compete in more mainstream sports. Under Armour produces a wide range of consumer products, from apparel and footwear to home goods. The company has distribution capabilities in most major markets around the world.

Under Armour is a leading athletic apparel company known for its innovative and groundbreaking products. In recent years, the company has made a concerted effort to focus on design innovation and new product development. This approach has led to significant advancements in Under Armour’s product line-up, including introducing clothing designed specifically for women. Nike’s 2016 “Court” collection was widely praised for its technical innovation. Under Armour has a global market presence with operations in over 30 countries. The company sells its products worldwide through over 1,000 retail stores and online outlets. Under Armour has a current market capitalization of C$420 million, making it one of the smaller apparel companies in North America (Torres et al., 2021). The company generates most of its revenue from Canada and United States sales. In 2016, Under Armour posted profits for the first time since 2006 due to increased merchandise sales. However, analysts have cautioned that Under Armour’s future is uncertain as North American athletic footwear growth prospects are relatively weak.

Competitive Value of Strategic Fit

Industry attractiveness and the strength of Under Armours’ business units are essential factors in determining whether or not this company would be a good investment. Industry attractiveness refers to how well the sector of the economy in which Under Armour operates is doing overall. Santos (2020) assumes that the apparel industry is a highly competitive one that can be demanding and challenging. In terms of attractiveness, the apparel industry has several strong business units, including sportswear, underwear, and accessories. Strength in these businesses allows Apparel of Under Armour to maintain a high level of competitiveness in the market. Footwear of Under Armour is a beautiful industry with solid business units, and companies in this industry can generate high profits because they have a definite competitive edge.

Additionally, the market is very saturated, so companies must be highly efficient to survive. The apparel industry is an attractive sector for businesses in the accessories of the under armour industry. The strength of this business unit lies in its ability to provide innovative and fashionable products that appeal to a wide range of consumers. It makes it a good choice for companies looking to enter this market, as there is potential for significant growth over time. As of 2019, the business unit with the most muscular-connected fitness was Under Armour’s health and fitness division (LELEUX, 2018). This division has strong partnerships with large athletic companies, such as Nike and Adidas, which allows it to maintain high levels of industry attractiveness. In addition, this division manufactures products tailored to specific sports, such as football and running, which makes it particularly strong.

Resource Fit

Under Armour’s accessories, Footwear, apparel, and Footwear are all well-positioned in the market. They offer unique products that appeal to a wide range of consumers. Several Under Armour branded products can also be found at most major retailers. The accessories division offers a variety of products, from backpacks and wallets to sunglasses and hats. Their footwear offerings are among the most varied in the market, encompassing everyday shoes and more specialized models such as running and bike shoes. The apparel line offers clothes for athletes, from casual to competitive (Schmid et al., 2018). They also have a wide range of footwear, including basketball sneakers and thermal socks. Finally, the footwear division offers a variety of models that can be worn indoors and out.

Business Unit Ranking and Priority for Resource Allocation Ranking

Under Armour’s accessories, footwear, apparel, and footwear are all considered cash cows for the company. Under Armour has various products that appeal to various consumers, ranging from hoodies and beanies to shoes and sunglasses. Consequently, Under Armour can generate high revenue from its sales in this segment. However, due to the large number of products the company offers, Under Armour has also been identified as a cash hog. The company has been able to generate high revenue from its sales in this segment, but it has also incurred high costs. As a result, Under Armour has struggled to maintain profitability in this sector over the past few years.

Strategic Moves to Improve Overall Corporate Performance

Under Armour’s Accessories, Footwear and Apparel will be allocated the highest priority for resource allocation due to their critical role in enhancing overall corporate performance. Regarding footwear, given that it is associated with an increasing trend among consumers toward healthier lifestyles, Under Armour has initiated various initiatives to improve its quality while keeping prices low. Under Armour should take several strategic moves to strengthen its overall corporate performance. The following are some examples:

  • Overcome ongoing difficulties in its relationships with key retail partners.
  • Under Armour needs to make significant progress in repairing these relationships to regain lost market share
  • Improve operational efficiency and improve customer service
  • Implement new marketing strategies
  • Increase research and development investment in innovative products
  • Attract and retain top talent.
  • Enhance communication and coordination across functions
  • Seek opportunities to collaborate with complementary businesses.


Under Armour is a company experiencing a decline in its market. This decline could be attributable to the intense competition among companies and social, political, and environmental factors. Under Armour has a robust global presence with exceptional product innovation and distribution. However, the company has several opportunities to grow as the global economy begins to recover while facing threats such as diminished consumer spending. Under Armour manufactures coats and jackets popular among people from all walks of life because they offer a fashion-forward look without spending much money.

They also make environmentally friendly products by using sustainable materials and processes when creating their products. Under Armour has a wide range of products designed to appeal to various athletes and consumers. The company is well supported by stars, with athletes like Serena Williams frequently wearing its effects on the tennis court. However, analysts have cautioned that Under Armour’s future is uncertain as North American athletic footwear growth prospects are relatively weak. The apparel industry is an attractive sector for businesses in the accessories of the under armour industry. A wide range of products appeals to different audiences, and companies must be highly efficient to survive. The strength of Under Armour’s health and fitness division lies in its strong partnerships with large athletic companies.


Bicho, A. (2018). Adidas AG-sportswear (Doctoral dissertation).
Leleux, B. F. (2018). Turnarounds, Chapter15, And Other Workouts Restructuring: Reinventing Value. Entrepreneurial Finance: The Art And Science Of Growing Ventures, 449.
Santos, F. M. P. P. D. (2020). Equity valuation under Armour (Doctoral dissertation).
Schmid, S., Dauth, T., Kotulla, T., & Leding, P. (2018). Adidas and Reebok: Is Acquiring Easier than Integrating? In Internationalization of Business (pp. 27-61). Springer, Cham.
Senteza, J., Suh, I., & White, T. (2020). Under Armour, Inc.: will a fallen titan recover? International Journal of Teaching and Case Studies, 11(4), 285-301.
Torres, K., Stevenson, A., & Hicks, J. (2021). Case Study: Under Armour Hack. Privacy Concerns Surrounding Personal Information Sharing on Health and Fitness Mobile Apps (pp. 145–162). IGI Global.
Wright, M. (2019). Strategic audit of Adidas.

Need more than just a sample?

Order a custom paper from a pro essay writer!