Essay About Swot        2A.        Strength Company And Kevin Plank

Under Armour
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CASE 20: UNDER ARMOURTABLE OF CONTENTS1)        Case Summary        12)        SWOT        2A.        Strength Company: Internal        2B.        Weaknesses Company: Internal        2C.        Opportunities Company: External        2D.        Threat Company: External        3E.        IFE        4F.        EFE        5G.        CPM        63)        Problem Statement        74)        List of Problem        75)        Alternative Strategies        76)        Best Strategy        77)        Implementation        78)        Conclusion        7Case SummaryDuring 1995, Kevin Plank was a walk on special team’s players for the university of Maryland football team. Plank tended to sweat a lot during the long practice session, frustrated by being weighed down by the accumulated sweat in his cotton T-shirt. Plank Began to search for alternative. And it all started with a T-Shirt, since creating his company from one shirt in 1996, Kevin Plank has expanded Under Armour into Footwear, women’s apparel, and even hunting and fishing wear. At left: the original compression T-shirt Plank to NFL equipment managers. Follow by HOT TO COLD. The original shirt kept players cool as they sweated; in 1997 UA came out with ColdGear, made to-do the opposite: insulate in the cold. HELLO, LADIES In 2005, UA launched women’ apparel. Items like Duplicity Bra were meant to conform well to the female body. SHOES. In 2007, UA entered footwear, a notoriously competitive market. It began with football cleats like the Click Clack, but now makes everything to high-tops. ON THE HUNT. Also in 2007, Under Armour putout a hunting and fishing line, including camo gear, hunting gloves, and leggings. This Ridge Reaper jacket is from the 2011line. SUPER BOWL. In 2008, UA had its first Super Bowl commercial featuring almost every athlete on the UA roster. Apart from that, the sales of under amour start to raise constantly starting from 2004 to 2008. However, in 2010 results, plank thought about what he wanted Under Armour to be. Should the company attempt to be leading athletic brand with products beyond apparel or should Under Armour cement its reputation as the leading U.S performance apparel maker and extend its dominance globally?SWOTStrength Company: InternalGood Leadership: By Kevin Plank the CEO.Core Competencies in Innovation: Variety of Products Offered.High Quality Apparel: Especially the T-Shirt.Increase in Sales Every Year: The First Two quarter 2009-2010 show positive result.Brand LoyaltyWide Range of ApparelAthlete and Team Sponsorships and EndorsementsVery Intelligent and Efficient R&D TeamBrand EquityWeaknesses Company: InternalSmall Total Sales and Net Income Compared to Nike and Adidas.Heavily Dependent on Domestic Market.High Prices.Heavily Dependent on PA for Sales (80%)Target Male Market more than female market27% of Sales come from 2 Distribution, Dick and The Sporting Authority.Opportunities Company: ExternalIncrease in Retails SalesGrowth of PA Industry (Domestically and Internationally)Female MarketConsumer Focus on Quality, Not PriceCorporate Social ResponsibilityEconomic RecoveryConsumers Becoming more Health consciousSport participation is the key aspect of U.S culture.Increase in sport participation in emerging marketsThreat Company: ExternalToo much dependence on few third-party suppliersLack of proprietary product rights.Increase in cost of raw materials and resources, shipping costs.Inflation Increase in ChinaIncrease in chines labor costs.Obesity Rates in US.IFE MATRIXNoStrengthWeightedRatingWeighted Scored123456789Good LeadershipCore Competencies in InnovationHigh Quality ApparelIncrease In Sales Every YearBrand LoyaltyWide Range of ApparelAthlete and Team Sponsorships and EndorsementsVery Intelligent and Efficient R&D TeamBrand Equity0.080.060.070.070.050.050.050.060.064444433340.320.290.280.280.200.250.150.180.24NoWeaknessWeightedRatingWeighted Scored123456Small Total Sales and Net Income Compared to Nike and Adidas.Heavily Dependent on Domestic MarketHigh PricesHeavily Dependent on PA for Sales (80%)Target Male Market more than female market27% of Sales come from 2 Distribution, Dick and The Sporting Authority.0.060.070.050.050.070.050.0521221210.120.070.100.100.070.100.052.80The total weighed score bellow 2.50 indicate to internally weak; however the score significantly shown above of 2.50 which 2.80 is indicate a strong internal position. Apart from that the strategies implemented should be maximized further to meet the opportunities and also defend against the threat.EFE MATRIXNoOpportunityWeightedRatingWeighted Scored12345678Increase in Retails Sales.Female Market.Consumer Focus on Quality, Not Price.Corporate Social Responsibility.Economic RecoveryConsumers Becoming more Health consciousSport participation is the key aspect of U.S culture.Increase in sport participation in emerging markets0.040.080.060.080.070.060.060.06223343230.080.160.180.240.280.180.120.15NoThreatWeightedRatingWeighted Scored123456Too much dependence on few third-party suppliers.Lack of proprietary product rights.Increase in cost of raw materials and resources, shipping costs.Inflation Increase in China.Increase in chines labor costs.Obesity Rates in US.0.070.080.060.040.040.051211110.070.160.060.040.040.052.34According to table above, rating are indicates the effectiveness the current company strategies respond to the factor. Rating 1 indicates poor, 2 are below average, 3 are above average and 4 is company respond to the factors. Apart from that, weights for industry-specific while rating for company specific. The total weight score well below 2.5 point initially weak business. Score significantly above 2.5 indicated strong internal position meanwhile the total weighted score of 2.34 indicates the business has less average ability to respond to external factor.