Analysis of Armour’s Business Model
Re: Analysis of Armour’s Business Model
In this memo, I will analyze the current situation in the company bearing in mind the advantages and opportunities which the company have. I will then give recommendation on what should be done to help raise the status of the company.
Under Armour has received contracts that require coming up with; outfitting for films, football leagues, among other occasions. During the year 2000, they were in charge of the outfitting of the XFL football club. This made them to gain more attention from the public as the team played their national games which were being shown over the televisions.
Armour has managed to open several branches in Canada, China, Baltimore and many other states. This is always done to ensure that they reach their markets as required. The success of any business organization depends on the reachability that its products have. The customers must know of your products before they can decide to use them.
When a critical analysis of Under Armour is done, it is found that some of the strengths of the company include the following. The company produces great products and that is why it has always been chosen to give outfitting for teams and also in films. The rate of customer loyalty is also said to be a notch higher. This is due to the fact that the company has always maintained its customers. The customers never run away because of the quality of the products that they are offered.
The strength of the company is also seen in its innovative culture. The company projects have not been those rigid. The company always ensures that diverse cultures are incorporated into the work that they are doing. Buyers always tend to choose commodities that they feel are in line with what they believe in. The company has always maintained this and this is why the business for the company has always been good even in other countries.
Being that the products by Under Armour are largely athletics’ wear, they always endorse athletes freely. They are in most case not expected to pay anything. The free endorsements which are done by Under Armour allows the athletes’ time to feel that they are valued by the company. The athletes therefore come back for more products and this has led to the improvements in business. Another strength of the company is that there is always a very strong company brand. The niche brands which have been incorporated by the company promotes the company too. The brands makes the company to stand out when compared with other competitors.
Another factor which can be said to have contributed positively is the unique technology which has always been used. The technology makes the apparels which are being produced to conform to the required standards. Failure to incorporate the use of technology currently means the failure of that company. Technology is seen in each and every activity of an organization. This company has always used technology to ensure that they are successful.
Furthermore, the company has a number of opportunities which are believed that when utilized well, will lead to its success. It has room for international expansion. Having opened up branches in some other parts Europe and Asia, it can also expand to occupy even parts like in Africa. This will ensure that the company always increases the number of their customers daily. Another opportunity is also seen in the emerging markets. The new markets are coming up and therefore the company must act fast to remain on top. Customers currently buy whatever apparel that is fashionable. People buy apparels with the issue of fashion in mind. Fashion leads todays’ world. The company therefore must strive that the products it produces are those that conforms to the needs of the individual. Companies like the Nike which have always been on top for quite a number of years uses this to outdo their competitors. Under Armour too therefore have to do the same so that the company occupies the best position.
Some of the areas that make the company do well in terms of business is also in the diversification of the products made. The company does not only dwell on one single sport. The company engages in production of apparels for different types of sports. Whether it is athletics, football, rugby, and more, the participants will always find something to appreciate. This has seen the company make a lot of profits.
The products of the company when compared with what is offered in other places, is seen that they are a little bit cheap. The company produces relatively cheap products and this also makes it have more clients. The price of the commodities should always go hand in hand with the quality offered. This is a factor however that Under Armour has always strived to maintain. The quality of the products offered and the price which they are assigned is always similar.
Problems facing the Company
Despite the above opportunities for the company, it is also faced with some problems. The Under Armour lacks a well-established online presence. The world has gone digital. Companies are placing all that they deal with online. Several companies have created an online platform where they advertise themselves. This is a problem that affects the Under Armour. Their online presence is somehow weak. So that they compete favorably with other teams, the company must ensure that the online presence is promoted.
Recommendations
Having analyzed the conditions of the company, the following are some of the recommendations which should be done to help improve the conditions of the company.
First, I recommend that the company improve its online platform. So that the athletics footwear are known in other countries and not in the United States only, the company needs to develop their online presence. This is believed that it will make the world know about what they do and the quality that they offer.
Secondly, having mentioned that there is a problem with the company’s relative small size, I tend to think the company should not try to come up with several branches that it can’tmanage. So that the resources of the company are not drained, branches in other countries that are not profitable should be done away with. The company ought to dwell on what it can manage.
