Under Armour Inc. Case Solution & Answer

Under Armour Inc. Case Solution

Competitive Profile Matrix (CPM)

	Â	Under Armour		Adidas		Nike
Critical Success Factors	Weight	Rating	 Score	RatingÂ	 Score Â	Rating Â	 ScoreÂ
Advertising & Marketing	0.10	4	0.40	2	0.20	3	0.30
Diversified Products	0.08	2	0.17	3	0.25	4	0.33
Innovation	0.07	3	0.21	2	0.14	4	0.28
Technology	0.08	4	0.32	2	0.16	3	0.24
R&D	0.08	3	0.24	2	0.16	4	0.32
Globalization	0.07	1	0.07	4	0.28	3	0.21
Financial Profit	0.05	3	0.15	3	0.15	4	0.20
Customer Loyalty	0.07	3	0.21	2	0.14	4	0.28
Market Share	0.09	2	0.18	3	0.27	4	0.36
Product Quality	0.10	3	0.30	2	0.20	4	0.40
Brand Identity	0.11	2	0.22	3	0.33	4	0.44
Price Competitiveness	0.10	2	0.20	3	0.30	4	0.40
Totals	1.00	Â	2.67	Â	2.58	Â	3.76

Analysis

CPM matrix provides an overall view of the market, and the helps analyzing the company and its competitors based on the key success factors of the industry. As per the total score, Under Armour is more competitive than Adidas, but Nike is more competitive than Under Armour. Under Armour uses more innovation in its products as well as it uses direct marketing such as, using the key sports persons.

External Factor Evaluation (EFE Matrix)

Opportunities	Weight	Rating	Weighted Score
There is growth potential in the company to grow globally	0.09	3	0.27
the company can diversify its products beyond apparels	0.05	2	0.1
there is opportunity to offer products targeted to casual wear customers	0.03	2	0.06
the company has less debt in its structure thus it can make capital expenditures to maintain competitiveness	0.08	3	0.24
Acquisitions will make the company to expands and increase its business	0.09	1	0.09
Through the use of patents, company can make its products unique	0.04	1	0.04
Women segment is underutilized, with increase of women interest in sports, this division can bear top results	0.06	3	0.18
Marketing strategy can be enhanced through sponsoring various sporting events	0.04	3	0.12
Accessories shows more growth, more innovative designs can help utilize this high growth	0.03	4	0.12
More proportion of population has become health conscious and involves in sports activities.	0.02	4	0.08
Threats	Weight	Rating	Weighted Score
there were many big players that can affect the company’s business such as Nike and Adidas	0.08	4	0.32
There is substitute products in the market, which hinders the company’s sales	0.05	2	0.10
Per capita income has been decreasing as inflation is rising	0.04	3	0.12
Under Armour products are tagged at high prices compare to other competitors	0.05	2	0.10
Without patents, competitors can easily copy the products and this leads to lower sales	0.04	3	0.12
Many other small players in the industry havecaptured more market share.	0.03	1	0.03
Footwear industry has slow growth rate, and sports footwear has only 13% market share	0.05	2	0.10
Improved efficiency of public transportation	0.03	3	0.09
Competitors use low cost manufacturing, as they setup its manufacturing industry in china where labor is cheap	0.05	3	0.15
the company is of small size as compared to its competitors which makes it difficult to compete well	0.05	2	0.10
Total EFE Score	1.00	Â	2.53

 Analysis

EFE matrix shows how much external factors affect the company. These external factors include threats and opportunities. The major threat is the competition from the key players in the industry. Another major threat is the dependence on selected distributors. On the other hand, the most important opportunity is to use innovation in the products and avail the growth opportunity as there is more sports enthusiasm in the population. The overall score is less than the IFE matrix……………

This is just a sample partial work. Please place the order on the website to get your own originally done case solution