Under Armour SWOT analysis
The goal of this project was to research and analyze Under Armour strengths, weaknesses, opportunities, and threats.
The business that I am analyzing is Under Armour. I currently work for this business as a retail sales associate. One of Under Armour’s strengths is its brand recognition and awareness. According to Alexander Kunst, a writer and researcher for Statista, a data website, “When it comes to sportswear users, brand awareness of Under Armour is at 88% in the United States.” This is a strength because brand visibility and awareness are important when attracting new customers. Another one of its strengths is its continued revenue growth. According to Macrotrends, an economic and statistical website, their revenue has consistently grown from $1.473 billion in 2011 to $5.904 billion in 2023. This is a strength because it helps the company to continue to innovate and try new things when it consistently grows its revenue. One of its weaknesses is its reliance on the U.S. market. According to Statista, a data website, $3.5 billion of its revenue in 2023 came from the U.S. market. This is a weakness because focusing on one market can cap the business’s overall growth. Another weakness is ethical issues. According to an SEC press release, “The Securities and Exchange Commission today charged sports apparel manufacturer Under Armour Inc. with misleading investors as to the basis of its revenue growth and failing to disclose know uncertainties concerning its future revenue prospects.” This is a weakness because it produces negative press and pushes away potential investors, driving the company’s stock price down. An opportunity is for the company to make international sales. According to the Market Research company Allied Market Research, “The global activewear market size was valued at $425.5 billion in 2022 and is projected to reach 771.8 billion by 2032.” This is a great time for them to pursue more global sales objectives. Another opportunity is for them to invest in products and packaging made from sustainable materials. According to a 2020 McKinsey US consumer sentiment survey, “More than 60 percent of respondents said they would pay more for a product with sustainable packaging.” Investing in sustainable packaging and products could increase the public sentiment of the company and could increase sales. Under Armour’s threats include its competitors such as Nike and Adidas. With Nike being the biggest threat. According to P. Smith a researcher for Statista, “Nike is the leader within its industry of athletic apparel, accessories, and footwear with sales reaching over 49 billion U.S dollars in the period from January 2022 to January 2023 this was more than double that of second place Adidas.” Nike consumes a large portion of the market. Another threat is counterfeit copies of their products. According to Kelyn Soong a writer for the Washinton Post,“ Another threat is economic conditions. According to Jad Hamdan, Claus Heintzeler, Jesse Nading, and Emily Reasor writers for McKinsey and Company, “Historically, footwear and apparel prices have lagged behind the CPI.” Which is not good for an apparel company during a struggling economy. My SWOT analysis for Under Armour.
Works Cited
Kunst, Alexander. “Under Armour Brand Profile in the United States 2022.” Statista, 25 May 2023, www.statista.com/forecasts/1351961/under-armour-sportswear-brand-profile-in-the-united-states.
“Under Armour Revenue 2010-2023 | UA.” MacroTrends, www.macrotrends.net/stocks/charts/UA/under-armour/revenue.
“Net Revenue of Under Armour U.S. 2023 | Statista.” Statista, 12 June 2023, www.statista.com/statistics/815677/us-net-sales-of-under-armour.
SEC.gov | SEC Charges Under Armour Inc. With Disclosure Failures. 3 May 2021, www.sec.gov/news/press-release/2021-78#:~:text=The%20Securities%20and%20Exchange%20Commission%20today%20charged%20sports,to%20pay%20%249%20million%20to%20settle%20the%20action.
“Activewear Market Size, Share, Growth, Forecast Report 2032.” Allied Market Research, www.alliedmarketresearch.com/activewear-market.
Am, Jordan Bar, et al. “Consumers Care About Sustainability&Mdash;and Back It up With Their Wallets.” McKinsey & Company, Feb. 2023, www.mckinsey.com/industries/consumer-packaged-goods/our-insights/consumers-care-about-sustainability-and-back-it-up-with-their-wallets.
Smith, P. “Sportswear: Largest Companies by Revenue 2022 | Statista.” Statista, 5 Sept. 2023, www.statista.com/statistics/900271/leading-sportswear-and-performance-wear-companies-by-sales-worldwide.
Hamdan, Jad, et al. “How the Apparel Industry Can ADAPT to Inflation.” McKinsey & Company, Sept. 2022, www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/how-the-apparel-industry-can-adapt-to-inflation.
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