Under armour mission statement 2018

Under Armour

Under Armour

22 April 2019

Table of Contents

Executive Summary (3)

Corporate Overview (4)

Internal Audit/Analysis (5)

      Management (5)

Financial (7)

Marketing (11)

Resources/Capabilities (13)

External Analysis (14)

Macro Factors (!4)

Micro Factors (15)

Global Core Competencies (17)

Current Global Strategy and Position (17)

Global Potential (17)

       SWOT (18)

Core Competencies (20)

Strategic Recommendations (22)

New Global Strategy (24)

Pro Forma Financial projections (29)

References (33)

Appendix (37)

Executive Summary

Under Armour is an Athletic Apparel and Footwear company missioned around the concept of bettering athletes’ lives. Their patented, innovative fabrics, unique logo, and endorsement-stacked advertising have made them a staple of the industry, much to the likes of their most comparable competitors, Nike and Adidas. They operate across five global continents, and sell their products through a variety of distribution channels including, but not limited to, Wholesale and Direct-to-Consumer.

Competition in Under Armour’s consumer market is difficult, both domestically and internationally. Established brands like Under Armour and Nike are being forced to innovate, as “Athleisurewear” companies like Lululemon are stealing domestic market share of women and children’s sales, which now drive the industry. Under Armour has been slow to adapt, and as a result, have taken a hit in domestic sales and market share.

Despite domestic difficulties, Under Armour has enjoyed continued success in international growth. What once accounted for less than 5% of global sales in 2013, International sales are now 28% of Under Armour’s business and brought in $1.4 Billion in 2018 sales.

Under Armour needs to decide on potential next steps. Their domestic sales are on a decline, and the revisions necessary to their recovery will be costly. Additionally, the domestic retail market is quickly shifting towards e-commerce, as retailers offering Under Armour and other comparable products are closing physical stores more than ever before. On the other hand, international business is growing at rapid speed, and many profitable markets remain relatively untapped.

Under Armour prides themselves on domestic sales, but their future success is dependent upon continued international growth. Of all potential international markets, the two geographic regions showing the most valuable year-over-year growth have been Asia and Europe/Middle East. Under Armour already has an established presence in Asia’s most valuable market, China, along with smaller markets like Japan. Their next move needs to be penetrating the Indian market. Undoubtedly the second largest market within Asia, India shows great promise for Under Armour. With a large increase in demand for retail space in 2018 and a pre-established e-commerce agreement with Amazon, India fits Under Armour’s current business model, and should be used as their Asian headquarters. Physical Under Armour storefronts in India’s largest, wealthiest Urban cities featuring their high-quality products at a premium price point will allow for Under Armour to continue growing internationally.

Success of this strategy will have Under Armour on pace to being a predominantly international company within the next decade. Much to the success of Nike, this trend is a good one for Under Armour, and should be expanded upon constantly.

Corporate Overview

Under Armour is a global multi-billion-dollar firm that deals with the sales of footwear, sports, and casual apparel and accessories. The company was founded on September 26, 1996, by Kevin Plank, and is headquartered in Baltimore, Maryland. The company also has numerous international offices in places like Amsterdam, which serves as their European headquarters, London, and Mexico. The idea behind the initiation of the company came from Plank’s days as a football player at the University of Maryland. He noticed that the sports apparel he was using was uncomfortable, and felt that the sports apparel industry was lacking a high-quality alternative for high-level athletic performance. As a result, he started Under Armour, which began as a small-scale business in his grandmother’s yard using only his small car as a means of transporting product to his customers. By the end of his first year, he accumulated a total of $17,000 and moved to Baltimore, where the company is still headquartered to this day. Today, the company stands as one of the renowned companies in sports and casual wear, selling to the United States of America and countries abroad (Under Armour, 2018).

Under Armour’s mission statement is coined around their need to better athletes via passion, design, and their continued efforts to innovate in the market. What motivated Plank was that him and his teammates were constantly struggling with the accumulation of sweat in their performance gear, leaving them wet during games and practices. As a result, he innovated a kit that would absorb most of the athletes’ sweat, making sure that they remain dry during training sessions and playing time. It was his desire to better the lives of athletes during competition, and this is what motivates the company's mission statement. Since founding the company, Plank and his team have constantly been exploring ways to improve their brand, hoping to better the lives of athletes, and society in general. This is recognized within Under Armour as a core value, which drives their continued effort towards excellence.

Under Armour’s short-term objective of emphasis is to offer adequate staffing. This entails a continued effort to diversify the company with building overseas offices to help in the smoothening of the various continued company activities abroad.

The other short-term objectives set by the company include bettering their current revenues, analyzed by setting attainable targets in the next financial year. For instance, in the last quarter of the 2017 financial year, Under Armour aimed to reach a target of $7.5 billion in revenues in 2018, which they achieved.

Moreover, the company has also set a short-term objective to ensure that employee satisfaction is attained and sustained, hoping to therefore improve the company’s productivity. For instance, the company recently decided to refer to employees as ‘teammates’, and feedback suggests that it has increased both employee satisfaction and productivity.

On the other hand, their long-term objective is inclined to their need to achieve adequate revenue growth and remain competitive with other renowned companies in their market like Nike Inc. They believe that in the next five years, it will be the best global sports apparel and casual wear seller in the industry. Tying into that, another long-term objective is to penetrate into a number of its previously untapped markets, including parts of Africa and Asia. Currently, Under Armour is aimed at expanding its market to many countries within Africa, and the interior parts of Asia.