Business Strategy Case Study: Under Armour

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Under Armour faces a twofold challenge, in the product and market area. Their heritage product category was compression Heat-Gear, and Nike the major competitor, was planning to take control of the new customers generations by creating a whole new line called Nike’s Pro Combat. Besides that, the marketing side was also having struggles. Since Nike created a strategy in which a strong emotional connection with customers was developed. This would have as repercussion the displacement of the Under Armour brand and therefore the slow decline of the company. CHOICE 1: Approach the decision as a product problem. PROS: • The immediate development of a new collection could capture the budget from retailers. In this way, the firm would gain more…show more content…
Furthermore, such approach will also allow the investment in new business categories. • Moreover, another possible advantage could be that an overhaul of the current product in stores could create a new energy for the brand and encourage shoppers to take a closer look. This way buyers will become familiar with the brand and possibly form a close relationship. CONS: • Indeed, a disadvantage of maintaining the same course is that the problem could arise a few months later. In other words, the competition would continue to gain customers over time while Under Armour would be out of the market. • Another disadvantage is that perhaps a marketing campaign could put Baselayer in the frame. However, this could be the case that it only provides a temporary success in sales. CHOICE 3: Start over with a new business plan. PROS: • Rebuilding the Baselayer product will allow Under Armour to analyze in detail the selection of fabrics, the design, pricing, and the position of the customer. This would allow the company to develop a higher quality product and capable of competing with the best products on the…show more content…
This means that different direction from when the company was founded would have to take place. Such actions symbolize changes in the product plan, in addition to maybe discrediting years of the work of the CEO or COO. MY CHOICE: Option 3 RATIONALE: I consider that option three is the best option to choose among the three past options. Star over a new business plan could allow this company the opportunity to design a product that can compete with the brands that conduct the current market. POTENTIAL OPTION: A potential option would be to reinvent the product entirely. An option could be to create equipment that did not require a Baselayer. Instead of using a Baselayer the new equipment would already have the main features of the previous product. DIFFERENTIATION: these two options differ since the third option seeks the improvement of the current product. In this option, it appears that Under Armor seeks to follow the pattern that NIKE adopted. On the other hand, in the potential option the company would seek to be a step forward in trends, in order to ensure that the brand becomes once again the favorite of the public. RATIONALE: I think it is a good idea given that it would be looking for a new market where there would be no immediate
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