Under Armour Case Write Up

Problem infra equip has become one of the most successful performance vesture vanes in the United States. Despite its recent successes, downstairs Armour does have a few problems that could adversely affect its upcoming sales. One normal environment issue is how the current economic office staff in the United States will affect Under Armours sales. As consumers change their buying habits it could hurt its sales severely. Two, Under Armour needs to consider how its lack of a diversified supply root word impacts its bargaining power. Roughly 75 percent of its fabric is purchased from only half dozen distributors.Three, the company should consider diversifying its product line beyond its current sports apparel majority. Under Armour doesnt have as much brand recognition in spring/summer sports such as soccer and basketball. Lastly, Under Armour should be more aggressive in expanding to European and Asian markets. Currently, Under Armour heavily relies on U. S. market and thit her are tremendous potential consumer power in Europe and Asia. planetary Environment Analysis There are a variety of divers(prenominal) external factors that influence the amount of success Under Armour is open to achieve.One of the biggest factors negatively affecting the faithful is within the economic sector. Consumers are consumption less money in the retail market. This come in outlay is causing a broader economic downturn. As a company who sells its products at premium prices, this downturn threatens to damage the companys sales and decrease profits. There are also several different opportunities offered by the general environment. Under Armour products are useful to athletes. Regardless of the country in which a sport is played, high quality, breathable apparel and durable, innovative equipment are perpetually useful.Because of the cultural transcendence of its products, Under Armour is pursuing international diversification. Their dodge is one of regionalization, a llowing top managers within each region to run intimately like a subsidiary, reacting to local preferences and competitors. Researchers have found that international diversification can lead to greater operational efficiency, which ultimately leads to higher financial performance. The move toward a more global firm should help the firm to grow, increase profits, and improve brand recognition worldwide. Additional threats and opportunities facing Under Armour are exhibited in Appendix A.