This document provides an analysis of the forces affecting the athletic apparel industry for Under Armour, conducting an analysis of 5 key forces: rivalry among competitors, threat of new entrants, threat of substitutes, bargaining power of buyers, and bargaining power of suppliers. Each force is examined based on 4 determinants, with the overall strength of each force rated on a 5 point scale. Additional appendices provide context on industry examples, and examine sociocultural, technological, and ecological trends in the industry through a STEEP analysis framework.

1. CASE 3 : UNDER ARMOUR
Strategic Analysis &
Recommendation
SONY SUPRINVIL

2. APPENDIX I

3. APPENDIX II
Force Industry Examples
Rivalry among competitors
Athletic apparel
Sport footwear
Accessories
Nike
Adidas
Threat of Substitutes
Athletic apparel
Sport footwear
NB
Puma
Reebok
Old Navy
Threat of New Entrants
Athletic apparel
Sport footwear
Accessories
Maverik Lacrosse
Athleta
Bargaining power of suppliers
Manufacturers
Materials
Asia(Taiwan, China etc.)
Central and South America
Middle East
Bargaining power of buyers
Retailers
Wholesalers
Internet sales
Sport Authority
Dick’s Sporting Goods
Mall Outlets
Walmart
Macy’s

4. APPENDIX III
FORCE 1: Rivalry among competitors
DETERMINANT 1 for FORCE 1: ( Number of competitors)
The industry is growing rapidly; it is expected to exceed
$180 billion in worldwide industry sales by 2020 (Strider,
2016).
2
"Rivalry is usually weaker when
buyer demand is growing
rapidly" (Thompson, 2015, p.
37)
DETERMINANT 2 for FORCE 1: (Newer competitors) in the
industry are growing in size, thus increasing their market
share (Strider, 2016).
4
"Rivalry usually becomes more
intense as competitors become
more equal in size and
capability, and as the number of
competitors increases”
(Thompson, 2015, p. 39).
DETERMINANT 3 for FORCE 1: (Brand Recognition )In the
industry, consumers want more value from their current
brands in terms of key product/image attributes (Salmon,
2013).
3.5
The most important value in a
brand is the value that it holds
for actual customers. This value
is very difficult and expensive to
build (Salmon, 2013).
DETERMINANT 4 for FORCE 1: (Consumers switching cost)
consumers can easily switch to a competitors offering for
little cost (Arline, 2012).
4.5
"Rivalry increases as it becomes
less costly for buyers to switch"
and vice versa (Thompson,
2015, p. 38)
Overall strength of FORCE 1: Rivalry among competitors 3.5

5. APPENDIX III (CNT)
FORCE 2: Threat of New Entrants
DETERMINANT 1 for FORCE 2: (High capital requirements) Large
capital cost are required for branding, advertising and creating
demand in the sport apparel industry (trefis, 2016).
1.5
" The larger the total dollar investment
needed to enter the market successfully,
the more limited the pool of potential
entrants" (Thompson, 2015, p. 41).
DETERMINANT 2 for FORCE 2: (Enormous disparity) Top
competitor in the industry earn $31billion in sale while the runner
up earn $16billion and third place earn $4billion (trefis, 2016).
2
"Industry conditions often cause existing
competitors to struggle to earn a decent
profit" (Thompson, 2015, p. 41)
DETERMINANT 3 for FORCE 2: (Market share) Although it is
possible for new companies to enter smaller niches of the
industry; It is very difficult to reach achieve a sizeable market
share (Strider, 2016).
2.5
"The industry’s outlook is risky or uncertain
or offers limited profit opportunities for
newcomer" (Thompson, 2015, p. 41).
DETERMINANT 4 for FORCE 2: (Distribution) It is difficult for new
entrants with low brand recognition to reach the three main
distribution channels: (1) corporate-owned retail stores
(2) Direct-to-consumer (or DTC) sales, which include online sales
(3) wholesale, franchise, and other channels (Sani, 2014).
2
"A potential entrant can face numerous
distribution channel challenges. Wholesale
distributors may be reluctant to take on a
product that lacks buyer recognition Retail
dealers must be recruited and convinced to
give a new brand ample display space and
an adequate trial period" (Thompson, 2015,
p. 41).
Overall strength of FORCE 2: Threat of New Entrants 2

6. APPENDIX III (CNT)
FORCE 3: Threat of Substitutes
DETERMINANT 1 for FORCE 3: (Counterfeit) The value of
seized counterfeit footwear dropped in 2012, but
counterfeited goods is still still a major factor and is
accounted for $54.9 million in 2012 ( Salmon, 2013).
4
"Low switching costs make it easier for
the sellers of attractive substitutes to
lure buyers to their
offering"(Thompson, 2015, p. 45)
DETERMINANT 2 for FORCE 3: (Casual Clothing) The
demand for casual wear segemnt as grown as employers
have relaxed the formal wear ( Ibisworld).
2.5
"The availability of substitutes
inevitably invites buyers to compare
performance, features, ease of use,
and other attributes besides price."
(Thompson, 2015, p. 45)
DETERMINANT 3 for FORCE 3:( High end luxury clothing and
footwear) luxury market such as footwear, clothing and
accessories increased by 3.2% in 2014 (luxury market,2015).
3
"Buyers are growing more comfortable
with using substitutes" (Thompson,
2015, p. 45).
DETERMINANT 4 for FORCE 3: (Brand Loyalty) Brand names
can increased consumer loyalty, consumers are more loyal
than ever to the brands that have delivered for them time
and time again (Salmon, 2013).
2
"Substitutes lack comparable or better
performance features" (Thompson,
2015, p. 45).
Overall strength of FORCE 3: Threat of Substitutes 2.6

7. APPENDIX III (CNT)
FORCE 4: Bargaining power of Buyers
DETERMINANT 1 for FORCE 4: (Price Increase) 64% of
consumers in the US (excluding Los Angeles) would switch if
prices increase in the industry increase by 10% or less.
4.5
"Buyers have low costs in switching to
competing brands or substitute
products." (Thompson, 2015, p. 49).
DETERMINANT 2 for FORCE 4: ( Inbound Marketing) Newly
launched websites are fast, and exceptionally easy to
compare prices throughout the industry.
4
"The more information buyers have
about the comparative product
offerings of industry members, the
better bargaining position they are in"
(Thompson, 2015, p. 49).
DETERMINANT 3 for FORCE 4: Mass retailers are paying
close attention and will likely stock their shelves with more
athletic gear; retailer and manufacturer across the board
know that active wear is active and they all want a piece of
the action (Cohen, 2014).
4
"The products of industry members are
“commodities” or else weakly
differentiated." (Thompson, 2015, p.
49).
DETERMINANT 4 for FORCE 4: Over time, consumer develop
loyalty to brand that provide a consistent, high-quality
experience; although consumers do not buy mass
quantities, they expect durability. (Kokemuller, 2013).
3
"Buyers purchase the item in small
quantities (Thompson, 2015, p. 49)."
Overall strength of FORCE 4: Bargaining power of Buyers 3.875

8. APPENDIX III (CNT)
FORCE 5: Bargaining power of Suppliers
DETERMINANT 1 for FORCE 5: (Raw material) such as
internal and external foam are being produced by vast
amount of suppliers in the industry (Unido, 2000)
1.5
The item being supplied is a “commodity”
obtainable from many different suppliers at the
going market price"(Thompson, 2015, p. 46).
DETERMINANT 2 for FORCE 5: (Leather Quality) Trend of
mid-quality leather is expected to increase throughout
industries in the next couple years (Future trend in the
leather industry 2010).
3
Suppliers are not dependent on industry members
for a large portion of their revenues (Thompson,
2015, p. 46).
DETERMINANT 3 for FORCE 5: (Athletic performance gear)
such as balance band demand is increasing, but there are
limited manufactures (Cohen, 2015).
3.5
Certain suppliers either have a differentiated input
that enhances the quality or performance of
sellers’ products or provide equipment/services
that deliver valuable cost-saving efficiencies
(Thompson, 2015, p. 47).
DETERMINANT 4 for FORCE 5: Firms in the industry can
choose to outsource or manufacture their own products
(Inc. Magazine, 2014).
2
"Industry members incur low costs in switching to
alternative suppliers" (Thompson, 2015, p. 47).
Overall strength of FORCE 5: Bargaining power of Suppliers 2.5

9. Industry Analysis Score
2.9

10. APPENDIX IV (STEEP)
Area 1: Sociocultural Trends
SOCIOCULTURAL Trend 1: 81% of Millennials say that they
exercise regularly, compared to only 61% of Boomers.
76% of all regular exercisers are Millennials
(brightmarkconsulting.com)
probability of occurrence is High:
Consumer preferences shift, often
unpredictably
(smallbusiness.chron.com)
the Probable Impact of the Millennial population on the active
wear apparel industry is High: According to Goldman Sachs, as
their consumption in other areas drop, they're willing to pay
more for athletic gear (Goldman Sachs).
SOCIOCULTURAL Trend 2: The global apparel industry is a
notorious sweatshop employer, with millions of workers
laboring under terrible conditions in dozens of developing
countries, making products sold in the Global North
(Publicseminar.org)
probability of occurrence is High:
Sweatshops are often used in the
clothing industry because it is easy to
separate higher and lower skilled jobs
and contract out the lower skilled
ones (fashion-
history.lovetoknow.com)
the Probable Impact on UA of Trend 2 is High: From a business
perspective, sweatshops are overwhelmingly lucrative since
they capitalize on low-wage labor in developing countries and
significantly reduce production costs
(globalethicsnetwork.org)
SOCIOCULTURAL Trend 3: consumers are wearing athletic
gear, such as yoga pants, for non-athletic activities in a
trend called “athleisure.” This is one of the fastest-
growing product categories in the apparel and shoe sector
(plunkettresearch)
probability of occurrence is Medium:
Retail businesses do their best to stay
ahead of consumer buying trends,
but all the research and marketing in
the world can’t replace simply being
in the right place at the right time
(smallbusiness.chron.com)
the Probable Impact on UA of Trend 3 is Medium: the never
ending list of trends and innovations reflects the rapid pace of
change in the retail industry (business.com)
SOCIOCULTURAL Trend 4: According to the CDC, life
expectancy is 78.8 years (cdc.gov)
probability of occurrence is Low:
There are many factors that can
affect your life expectancy, and our
scientific understanding of life
expectancies is still evolving
(cbsnews.com)
the Probable Impact of a higher life expectancy on UA is
Medium: According to a study by a team of researchers led by
the National Cancer Institute (NCI), Leisure-time physical
activity is associated with longer life expectancy, even at
relatively low levels of activity and regardless of body weight
(cancer.gov)

11. APPENDIX IV
Area 2: Technological Trends
Technological Trend 1: designers should work with
intellectual property counsel to build a protocol for
determining whether copyright, trademark or patent
registration might be a suitable form of federal
protection for their creations, and if so, seek to
obtain those registrations (apparel edgl, 2016)
probability of occurrence of Technological
Trend 1 Medium: Samples are the heart of
apparel production. They make up the
collection, lead to the perfect fit, instruct
production, and act as the showpieces that
bring in business (Clark, 2014).
Probable Impact on UA of Technological Trend 1 is
Low: Many of the specialty fabrics used in Under
Amour’s products are technically advanced textile
products developed by third parties (Nasdaq, 2015).
Technological Trend 2: Cloud Computing is the
greatest tech shift since the dawn of the Internet is
underway as the cloud takes over from packaged
software and discrete IT services (Forbes, 2016).
probability of occurrence of Technological
Trend 2 Medium: In 2016, spending on
public cloud Infrastructure as a Service
hardware and software is forecast to reach
$38B, growing to $173B in 2026 (Forbes,
2016)
Probable Impact on UA of Technological Trend 2 is
Medium: UA can increase its revenue as Worldwide
Public IT Cloud Service Revenue in 2018 is predicted
to be $127B (Statista, 2016).
Technological Trend 3: E-commerce is becoming a
growing trend; consumers can make purchases with
just one click (internet retailer, 2016).
probability of occurrence of Technological
Trend 3 High: more than 3.17 billion people
worldwide access the internet (Statista,
2014)
Probable Impact on UA of Technological Trend 3 is
Low: The rise of Internet shopping and growth of off-
price retailing are mega-trends reshaping the retail
industry. In 2016, retailers who want to survive will
have to respond by restructuring (Forbes, 2015)
Technological Trend 4: 3D printing is getting cheaper
and its market will grow over the next three years.
The expansion will be biggest in industrial,
biomedical, and consumer applications helping
companies reduce costs (Forbes, 2015)
probability of occurrence of Technological
Trend 4 Medium: 3D printing companies
have partnered with Nike to start
manufacturing large scale to continue their
innovative designs using (Armstrong, 2016).
Probable Impact on UA of Technological Trend 4 is
Medium: UA Mitigate Risk by Being able to verify
designs before investing in an expensive molding tool;
Printing a production-ready prototype builds
confidence before making these large investments
(dragon innovation, 2014).

12. APPENDIX IV (CNT)
Area 3: Ecological Trends
Ecological Trend 1: According to the Organic Trade
Association (OTA), the growth of traditional cotton
crops uses 16 percent of the world’s total insecticides,
more than any other individual crop. (sharprint.com)
probability of occurrence of Ecological
Trend 1 is High: Cotton is considered the
world's dirtiest crop due to its heavy use
of pesticides (Rodle Institute, 2014)
Probable Impact on UA of Ecological Trend 1 is Low: Unsafe
use of agricultural chemicals has severe health impacts on
workers in the field and on ecosystems that receive excess
doses that run-off from farms (wwf.panda.org)
Ecological Trend 2: 300 cities in China that badly failed
air-quality standard measurements in 2015, according
to data collected by Greenpeace. (Gustke, 2016)
probability of occurrence of Ecological
Trend 2 is High: Outdoor air pollution
contributes to the deaths of an
estimated 1.6 million people in China
every year (Levin, 2015)
Probable Impact on UA of Ecological Trend 2 is High: Air
pollution is clearly very costly, though, to its $11-trillion-plus
economy. Those costs are mainly driven by lost productivity,
since factories are shut down on bad hair days to avoid the
dangerous health effects of breathing the dense, toxic air.
(Gustke, 2016)
Ecological Trend 3: Using renewable energy sources,
especially in manufacturing and industrial activities, is
critical to slowing and hopefully reversing the
devastating impacts of climate change (Armstrong,
2015)
probability of occurrence of Ecological
Trend 3 is High: Green’ consumers may
have been a niche group in the early
years of this century, but awareness and
consumer expectations of green
products have become a mega-trend
driving demand (lane, 2015)
Probable Impact on UA of Ecological Trend 3 is Medium:
Many consumers are becoming aware of the carbon footprint
their garments are leaving and are looking to minimize their
“brown impact" (Beneath the under amour: A green ethical
company,2011)
Ecological Trend 4: Strong scientific evidence shows
that global warming is increasing certain types of
extreme weather events, including heat waves, coastal
flooding, extreme precipitation events, and more
severe droughts (Union of concerned scientists, 2016)
probability of occurrence of Ecological
Trend 4 is Medium: In 2016, the
National Academies of Science,
Engineering, and Medicine announced
that it’s now possible to confidently
attribute certain weather events, like
some heat waves, directly to climate
change (MacMillan, 2016)
Probable Impact on UA of Ecological Trend 4 is Medium: Links
in global economic chains and world markets mean that
extreme weather in one place can have repercussions
elsewhere (Levermann, 2014)

13. APPENDIX IV (CNT)
Area 4: Economic Trends
Economic Trend 1: Outsourcing will be an
approximately $524.4 billion global industry in 2015
(plunkettresearch.com)
probability of occurrence of Economic
Trend 1 is Medium: Labor costs are
the main driver of corporations
sending jobs overseas
(americanprogress.org)
Probable Impact on UA of Economic Trend 1 is Medium:
Product quality is vital to the UA brand, and product
quality is tied to manufacturing costs. And cheap labor
makes product quality sustainable (Rodricks, 2015)
Economic Trend 2: The highly skilled in the United
States earn a much larger wage premium over
unskilled workers than in most, if not all, other
advanced nations (Porter, 2013)
probability of occurrence of Economic
Trend 2 is Low: low-cost labor matters
more to firms that make clothes,
whereas cheap energy is much more
important to the chemicals industry
(economist.com)
Probable Impact on UA of Economic Trend 2 is Low:
American wage restraint and newly cheap energy have
improved its attractiveness to manufacturers
(economist.com)
Economic Trend 3: Prices for U.S. imports increased
1.4 percent in May, primarily driven by
higher fuel prices (bls.gov)
probability of occurrence of Economic
Trend 3 is Medium: Our economy’s
heavy reliance on fossil fuels means
that the impact of rising fuel prices
extends far beyond the higher cost of
a tank of gas (reurbanist.com)
Probable Impact on UA of Economic Trend 3 is Medium:
Rising energy prices means higher retail prices, increasing
the burden on retailers and consumers alike
(reurbanist.com)
Economic Trend 4: Since the start of 2015 the U.S.
dollar has gone up in value about 14%
(money.cnn.com)
probability of occurrence of Economic
Trend 4 is High: According to Citibank,
America's greenback is enjoying its
fastest rise in 40 years
(money.cnn.com)
Probable Impact on UA of Economic Trend 4 is High: When
the dollar strengthens, net exports -- and, therefore,
demand for U.S. goods and services -- should fall
(Thoma,2014)

14. APPENDIX IV (CNT)
Area 5: Political-legal Trends
Political-legal Trend 1: National-security
concerns can have an impact on
consumers' buying and saving habits
throughout the economy, trends in
politics can heighten security fears
(Ingram, 2016).
probability of occurrence of Political-legal Trend
1 is Medium: People and parties in power at any
time have a direct influence over the
relationships of a nation with its neighbors in the
global community, including hostile rivals
(Ingram, 2016).
Probable Impact on UA of Political-legal Trend 1 Low:
Since half of UA product is produced in unstable
countries, Violence could cause UA's factories to shut
down, destroyed shipments and delayed or confiscated
product (Farren, 2009).
Political-legal Trend 2: Since the early
1990s, decreasing tariffs on a global
scale has been a trend as evidenced by
the passage treaties such as the "GATT
and "NAFTA" (Allen,20013).
probability of occurrence of Political-legal Trend
2 High: International trade is largely free from
tariffs in 2012, 40% of international trade was
fully liberalized under MFN terms (United
Nations Conference on Trade and Development,
2013).
Probable Impact on UA of Political-legal Trend 2 High:
Foreign companies can import their product paying a very
low tariff, thus enabling them to compete against U.S.
companies such as UA (United Nations Conference on
Trade and Development, 2013).
Political-legal Trend 3 Change in
political environment can affect
business organization by adding risk
factors and lead to major lose, it can
also affect government policies on the
local and federal level (pestle analysis,
2015).
probability of occurrence of Political-legal Trend
3: Medium Businesses can be affected by many
aspects of government policy; businesses must
comply with the law. This may require taking
action before the legislation comes into effect
(change in market environment, 2016).
Probable Impact on UA of Political-legal Trend 3 Medium:
Change in political environment can directly affects the
relationship between UA’s employees, its customers, and
its suppliers (Neva, 2014).
Political-legal Trend 4 Corruption has
been a longstanding barrier to
economic development in many
countries. Some companies prosper by
bribing government officials (Neva,
2014).
probability of occurrence of Political-legal Trend
4 Medium: Although the number of foreign
bribery cases resulting in a punishment has
fallen since its peak in 2011, it remains
historically high (Ferdman, 2014).
Probable Impact on UA of Political-legal Trend 4 High:
This gives UA an unfair advantage as bribing is illegal in
the U.S.; the most common reason observed among the
bribes was that companies wanted to gain an advantage
landing public contracts with foreign governments
(Ferdman, 2014).

15. APPENDIX V

16. APPENDIX VI (EFAS)

17. APPENDIX VII

18. Key Insights:
● Under Armour shows an annual average growth rate of 325% and a CAGR of 23% vs. Nike with an average
growth rate of 49% and a CAGR of 6%. Lastly Adidas annual average growth rate of 17% and a CAGR of 2.3%.
Nike and Adidas show sign of mature companies vs. UA is still capturing markets.
APPENDIX VIII (Sales)

19. APPENDIX VIII (Stock Price)
Key Insights:
● Information retrieved from Yahoo Finance
● Under Armour shows an annual average growth rate of 184% and a CAGR of 16%.

20. Key Insights:
● Under Armour shows an annual average growth rate of 444% and a CAGR of 27% vs. Nike with an
average growth rate of 43% and a CAGR of 5%.
APPENDIX VIII (Net Profits)

21. APPENDIX IX

22. APPENDIX X (Equity Spread)

23. APPENDIX XI

24. APPENDIXXII
Inventory of Resources Strengths and Weaknesses
S 1. Excellent brand recognition (UA.com)
S 3. Solid financial standing and easy access to capital (Yahoo Finance)
S 7. Strong information and technology systems as well as efficient and effective inventory tracking systems (Forbes.com)
S 6. Strong distribution and selling channels in the US (Yahoo Finance)
S 16. Workforce efficiencies
S 5. Unique Technology (UA.com)
S 11. School and university endorsements
S 10. Athlete endorsements
S 17. Eco-friendly operations (UA.com)
S 4. Customer Loyalty
S 19. Trendy Advertising (UA.com)
S 2. Uses high performance and high quality materials (UA.com)
S 14. SAP System (Yahoo Finance)
S 18. Good Leadership/Experience top level management
S 13. Core competence in innovation (UA.com)
S 9. Increase in net sales every year (Yahoo Finance)
S 12. Very intelligent and efficient R&D team
S 15. Attractive logo and image (UA.com)
S 8. Brand Equity (Yahoo Finance)
S 20. Under Armour's Programs/Legacy partners (UA.com)

25. APPENDIXXII
Inventory of Resources Strengths and Weaknesses
W 1. Small revenue, sales and income compared to Nike/Adidas
W 3. Heavily dependent on domestic market/No International presence
W 5. High Prices
W 4. Lack of strong intellectual property rights
W 8. Too much dependence on few third party suppliers
W 10. Target male market more than the female market
W 9. 27% of sales come from 2 distributors; Dicks and Sports Authority
W 2. Smaller company relative to main competitors
W 8. Low Barriers to Entry
W 7. Weak online presence

26. APPENDIXXIII
Internal Factors Weight Rating Weighted Score
Strengths
Excellent marketing strategies and brand recognition 0.08 4 0.32
Core competence in innovation 0.05 3 0.15
Uses high performance and high quality materials 0.06 4 0.24
Increase in sales every year 0.07 4 0.28
Solid financial standing and easy access to capital 0.07 4 0.28
SAP System 0.05 4 0.2
Unique Technology 0.05 3 0.15
Athlete endorsements 0.05 3 0.15
Very intelligent and efficient R&D team 0.06 3 0.18
Brand Equity 0.06 4 0.24
Weaknesses
Small total sales and net income compared to Nike/Adidas 0.06 2 0.12
Heavily dependent on domestic market/No International presence 0.07 1 0.07
High Prices 0.05 2 0.1
Low Barriers to Entry 0.05 2 0.1
Too much dependence on few third party suppliers 0.07 1 0.07
Weak online presence 0.05 2 0.1
27% of sales come fron 2 distributors; Dicks and Sports Authority 0.05 1 0.05
Total scores 1.00 2.8

27. APPENDIX XIV

28. APPENDIX XIV (CNT)

29. APPENDIXXIV(CNT)
Under Armour Nike Adidas
Key Success Factors and
Strength Measures
Importance
Rate
Strength
Rating
Weighted
score
Strength
Rating
Weighted
score
Strength
Rating
Weighted
score
Brand Image 0.10 7 0.70 8 0.80 5 0.50
Price 0.25 3 0.75 2 0.50 1 0.25
Product Quality/Performance 0.15 9 1.35 10 1.5 8 1.2
Distribution Capability 0.05 6 0.30 7 0.35 1 0.05
Innovation 0.10 9 0.90 8 0.80 5 0.50
Customer Loyalty 0.10 8 0.80 10 1 6 0.60
Financial Resources 0.05 5 0.25 6 0.30 2 0.10
Advertising/ Promotion 0.20 7 1.4 9 1.8 5 1
Sum of Importance Rates 1.00
Weighted overall strength
rating
6.45 7.05 4.2

30. APPENDIX XV
Potential move Offensive
Type Horizontal integration
KSF Solid financial standing and easy access to capital (5)
Alternative Penetrate the international apparel market by developing a strong presence in
European countries
Potential move Defensive
Type Differentiation
KSF Uses high performance and high quality materials (S3)
Alternative Use 3D printing to create unique, high quality and differentiated product in order
to continue competing in the industry

31. APPENDIXXVI(TOWS)
STRENGTHS – S
1. Excellent marketing strategies and brand recognition
2. Core competence in
innovation
3. Uses high performance and high quality materials
4. Increase in sales every year
5. Solid financial standing and easy access to capital
6. SAP System
7. Unique Technology
8. Athlete endorsements
9. Very intelligent and efficient R&D team
10. Brand Equity
WEAKNESSES – W
1. Small total sales and net income compared to
Nike/Adidas
2. Heavily dependent on domestic market/No
International presence
3. High Prices
4. Low Barriers to Entry
5. Too much dependence on few third party suppliers
6. Weak online presence
7. 27% of sales come from 2 distributors; Dicks and
Sports Authority
OPPORTUNITIES – O
1. Rapid growth in the Industry
2. High capital requirements
3. Increase amount physical fitness activities
4. Trend of wearing athleisure clothing
5. Brand Image
SO STRATEGIES
1. (S1:O4) Use of the excellent marketing strategies and
brand recognition to keep up with athleisure clothing
trends.
2. (S8:O5) Increase brand image with the use of athlete
endorsements.
3. (S4: O2) By increasing sales every year, UA will
continuously overcome high capital requirements.
WO STRATEGIES
1. ( O4:W6) Penetrate athleisure wear through E-
commerce.
2. ( O1:W3) Use the rapid industry growth to gain market
share by offering discounts
3. ( O2:W2) Use the high capital requirement to enter the
industry as a means to develop an international presence
THREATS – T
1. Consumers switching cost
2. Counterfeited goods
3. Easily produced raw material
4. Tariffs Barriers
5. Prices for U.S. imports increased
ST STRATEGIES
1. (S5:T4) The use of their solid financial standing and easy
access to capital to surmount tariff barriers.
2. (S9:T2) Outwitting counterfeited goods with their
efficient and very intelligent R&D team.
3. (S3:T3) Conquer competitive raw materials with the use
of high performance and high quality materials.
WT STRATEGIES
1. ( T1:W3) Pay close attention to competitors price in
order to adjust
2. ( T2:O1) Produce unique product to increase sale and
minimize possibility of counterfeiting
3. ( W4: O7) Use low trade barrier rate to gain
international distributors

32. APPENDIX XVII (SFAS)
Strategic Factors Weight Rating Weighted Score
S 1. Excellent marketing strategies and brand recognition 0.1 4 0.4
S 2. Increase in sales every year 0.1 4 0.4
S 3. Solid financial standing and easy access to capital 0.1 4 0.4
W 1. Heavily dependent on domestic market/No International presence 0.1 1 0.1
W 2. Too much dependence on few third party suppliers 0.1 1 0.1
W 3. Small total sales and net income compared to Nike/Adidas 0.1 2 0.2
O 1. High capital requirements 0.05 1.5 0.075
O 2. Rapid growth in the Industry 0.1 2 0.2
O 3. Brand Image 0.1 2 0.2
T 1. Tariffs Barriers 0.05 4 0.2
T 2. Counterfeited goods 0.05 4 0.2
T 3. Consumers switching cost 0.05 4 0.2
Total scores 1.00 2.675

33. APPENDIX XVIII (Recommendations)
● Increase Efforts Toward Global Markets
-Focus efforts on establishing distribution channels through Europe
-Consider acquisition of established company in Europe e.g. Joma Sports in Spain
● “Intelligent Assistant” Customer Service
-Valuable for consumers with inadequate knowledge of Under Armour products and high-performance
apparel . 24/7 availability
● Establishing Larger Share in Female Market
-“ Women’s apparel some day will be larger than our men’s apparel business, which is our goal” - Kevin
Plank
-Women account for 80% of buying decisions, which includes shopping for family members, as well as
purchasing for own use. Women athletes are much more particular about what they wear for working out.
Don't just make decisions based on what looks good, rather the functionality of the item

34. APPENDIX XVIII (Recommendations)
● Open More Factory House Locations
-Less than 100 total locations in 34 states. Expansion builds distribution channels without having to compete
for shelf space at retail stores .
-Attempt to Become Official Apparel Company for Professional Leagues. Penetrates a market held by
competitors
● Focus on basketball footwear to grow shoe sales
-Run more ad campaigns focused on basketball footwear to educate consumers. Continue to sign young elite
athletes as endorsers.
-Continue to gradually introduce footwear to generate hype. Brand can grow as the athlete grows and
becomes more successful
● Implement Critical Sales Events (CSE)
-Customer loyalty
-Lower cost through customer retention
-Positive word of mouth

35. THE END

36. REFERENCES
•http://www.prnewswire.com/news-releases/consumer-study-shows-apparel-brand-loyalty-has-increased-consumers-seek-more-from-
brands-they-currently-own-75652392.html
•http://www.cbc-group.net/papers/brand.php
•http://www.trefis.com/stock/ua/articles/186040/under-armour-through-the-lens-of-porters-five-forces/2013-05-16
•http://www.investopedia.com/articles/markets/020316/analyzing-porters-five-forces-under-armour-ua.asp
•http://www.businessnewsdaily.com/5446-porters-five-forces.html
•http://www.trefis.com/stock/ua/articles/186040/under-armour-through-the-lens-of-porters-five-forces/2013-05-16
•https://www.atkearney.com/gbpc/detail/-/asset_publisher/0cePdOWatojD/content/top-12-global-trends-to-watch-in-2016/10192
•https://www.fas.org/sgp/crs/natsec/R41589.pdf
•http://www.wikinvest.com/stock/Under_Armour_(UA)
•http://www.inc.com/magazine/201607/liz-welch/robert-herjavec-shark-tank-better-entrepreneur.html
•http://pestleanalysis.com/political-factors-affecting-business/
•http://smallbusiness.chron.com/political-trend-affect-small-business-64909.html

37. REFERENCES
•https://www.linkedin.com/pulse/20140421211746-655694-business-continuity-the-effects-of-the-political-
environment-whats-your-backup-plan
•https://www.washingtonpost.com/news/wonk/wp/2014/12/03/how-the-worlds-biggest-companies-bribe-
foreign-governments-in-11-charts/
•https://makersrow.com/blog/2014/06/5-tips-for-creating-an-apparel-prototype/#
•http://www.forbes.com/sites/louiscolumbus/2016/03/13/roundup-of-cloud-computing-forecasts-and-market-
estimates-2016/#7256aea874b0
•https://www.internetretailer.com/2016/02/17/us-e-commerce-grows-146-2015
•http://3dprintingindustry.com/fashion/