How Under Armor (UA) go Global
Greenfield investment in everything
Retail is important in any given business; UA is seeking to build a retail store of its own given that the company relies on retailers to sell and distribute its products. The retailers, in fact, choose the product they perceive to be of acceptable prestige for their stores. The company makes its net revenue from its wholesale distributors. The company is at a growth stage both in the numbers of the staff and in the structure of the enterprise. The company is building its facility in Amsterdam, and this serves as an expansion program, and here offices and a manufacturing plant will be based (Bedoshvili, 2011).
Investment in mergers and acquisitions of foreign companies
UA has significantly grown its marketing strategy as a means for reaching multiple segments including an international segment. The company recently acquired three apps which enable the company to interact with its customers directly. Each one of the apps appeals to a particular market base i.e. bikers and runners interact via the MapMyFitness app, calorie watchers interact using the MyFitnessPal app, and the Edomondo appeals to the European market (Edelson& Fellowship, 2015).
Market-mediated contractual ties with foreign vendors
UA doesn’t have any long-term contractual agreements, and the company has more than ten primary suppliers who supply to the company. The manufacturing process is outsourced, and manufacturers are majorly located in Asia in areas where political and economic stability is present. The company has dependence relationships with its suppliers because of the fabric that the company uses does not have a substitute and must be ordered through subcontractors (Bedoshvili, 2011).
Sales expansion overseas
The worldwide sale of footwear and apparel is a growing one and is highly competitive. UA has established its roots basically in the US despite the slow-growing economy and has ventured to overseas regions by adequately positioning. UA has managed to gain the attention of Europe by being the official kit producer for Tottenham Hotspurs (Bedoshvili, 2011). The UA has also signed deals with a German soccer team and a Welsh rugby team who promote the company’s products and slogan.
References
Bedoshvili, O. (2011). Under Armor Inc. (Doctoral dissertation, Anglo-American University).
Edelson, M., & Fellowship, W. W. (2015). “Protect This House”: Three Words That Have Become One Movement. Available at http://krieger.jhu.edu/woodrowwilson/wp-content/uploads/sites/3/2015/06/Edelson-Michelle-Final-Paper.pdf
