Under Armour Case, Team 2 Final Presentation

1. Under Armour, Inc. - Strategic Growth in a Competitive Market
Building a Case for Change
Team 2:
Brendan Crowley,
Belen Molina,
Guru Velasco
Friday April 17th, 2009

2. Contents

3. The Case for Change

4. Under Armour is currently laden with numerous operational inefficiencies, and needs to revamp their strategy for growth.
Under Armour stock is viewed as Overvalued
There is no system in place for meaningful customer analysis.
Different divisions store data in different ways
Marketing efforts are not as strong
Supply Chain Management predictions are more difficult
Management feels overburdened.
Insufficient communication between different branches
This results in major operational inefficiencies
Managers feel unable to implement changes
The Case for Change
The Case for Change
The restructuring of Under Armours IT system will increase operational efficiency and allow more meaningful customer analysis.

This will provide the foundation for strategic growth success both internally and externally

5. Internal operational inefficiencies will be reduced by useful collection, analysis and transference of data

6. Revitalized marketing efforts and further international expansion will be founded upon new business intelligence

Primary Goals : Obtaining Meaningful Customer Analysis and Reducing Operational Inefficiency.

7. Cotton is the Enemy
We strongly believe that Under Armour should continue to grow by capturing a larger share of the athletic apparel market through International Expansion. In addition, the restructuring of Under Armours IT system will increase operational efficiency and allow more meaningful customer analysis. This will provide the foundation for success without having to include additional product lines within the U.S.
Declining consumer confidence in the U.S. has impacted domestic sales
However, growth in the global market has continued
In 2011, the global apparel, accessories, & luxury goods market is forecast to have a value of $1,405.8 Billion, an increase of 24.7% since 2006
The Case for Change
We are convinced that Under Armour should continue to grow by capturing a greater share in athletic apparel as opposed to penetrating the overall apparel market with non-athletic products aimed at replacing cotton.

People associate Under Armour with athletic apparel

8. UAs core competency is its form-fitting, moisture wicking performance apparel designed to be worn under sportswear

9. Penetrating the overall apparel market would signify reaching out to a different market sector and changing the image the company has worked so hard to convey

10. The image Under Armour has built around its products is one of invulnerability, athletic performance, and

Source: http://en.wikipedia.org/wiki/Under_Armour
NYTimes.com- Muscling Into the Mainstream

11. Recommendations & Cost-Benefit Analysis

12. Revamped IT System and Business Intelligence
United States Market
International Market
Revitalized Marketing Effort
Recommendations & Cost-Benefit Analysis
Overarching Recommendations
The restructuring of Under Armours IT system will increase operational efficiency and allow more meaningful customer analysis. This will be the foundation for all the changes to be made at Under Armour.
Restructured system will utilize all collected data to create useful business intelligence
Operation inefficiencies will be reduced by more efficient information systems
Changes will be easier to implement and Managers will be less overburdened
The ability to analyze and manipulate data from all branches of Under Armour will provide the basis for more effective marketing campaigns both within the US as well as internationally

Restructured system will utilize all collected data to create useful business intelligence

13. Operation inefficiencies will be reduced by more efficient information systems

14. Changes will be easier to implement and Managers will be less overburdened

Currently the 4000 international stores out of a total 12000 stores Under Armour is sold in provide only 4% of total revenue. Given the state of the economy at home, additional international revenue is critical

Potential acquisition of weaker international company offering similar goods

15. Work through this company to gain market share

16. Initial penetration of Swedish market, then the rest of the Nordic region

We strongly believe that Under Armour should continue to grow by capturing a larger share of the athletic apparel market. This will be achieved through the following goals:

Revitalized US Marketing Campaigns

17. Utilize business intelligence to better sculpt effective marketing campaigns for both genders

18. Push for increased Web Sales

19. Web Sales are providing a larger amount of total sales every year in the online apparel industry

Under Armour Case, Team 2 Final Presentation

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