U A S t r a t e g i c P l a n | 1

Under Armour

Student Name

BUSN 620

U A S t r a t e g i c P l a n | 2

Overview

Under Armour is a worldwide distributor of athletic apparel footwear and

accessories The company got its start when a young University of Maryland football

player got tired of constantly changing sweat-soaked shirts between practices Since

then the now CEO of Under Armour Kevin Plank has taken the company that started

with a single product engineered out of synthetic fibers and transformed it into a global

competitor in the market place

Under Armour is a rapidly growing business reporting annual revenue of $183

billion at the end of 2012 up from their $85641 million published at the end of 2009

(Under Armour Inc 2012) This is a far cry from the early days of the company in

U A S t r a t e g i c P l a n | 3

1996 when UA was lucky to generate a meager $17000 in sales Since UArsquos entry into

the market they have made serious progress to establish themselves as a successful

business and a real competitor to other companies within the market such as the

athletic giant Nike

Today Under Armourrsquos inventory has expanded from the original compression t-

shirt to a product line including a full line of athletic shirts and shorts to footwear

jackets bags cold weather garments and more Kevin Plankrsquos products are sold in

nearly every athletic apparel story across the United States and in many international

market places Additionally UA has secured its place in the professional arena by

becoming ldquothe official footwear supplier of the NFL and MLB and partners with the NBArdquo

(Yahoo finance 2013) This company has successfully claimed a prominent place in

the market and has shown no signs of slowing their expansion and determination to

achieve business success

History

As mentioned earlier the concept that

sparked the Under Armour Company was

based upon a problem involving consistently

soaked shirts from sweat Kevin Plank was

determined to find an easier way for him and

fellow athletes to push themselves physically

without having to tolerate wet hot and

uncomfortable under garments After

U A S t r a t e g i c P l a n | 4

researching the benefits of synthetic materials and their applications he developed a t-

shirt he named 0037 (Under Armour Inc 2013) The innovative shirt helped keep

athletes cool and dry even on the hottest of days This product quickly became popular

with athletes serving as the first test for the emerging business

UA continued to conduct business on a relatively small scale until his advertising

strategy caught traction In 1999 Under Armour partnered up with the movie industry

providing apparel to the cast of Any Given Sunday In the movie Mr Plankrsquos products

were worn during iconic scenes in the movie inspiring UA to expand their advertising to

ESPN magazine For the small growing business at the time this move was risky but

paid off in the end by spreading the word of Under Armour products and boosting sales

by $750000 (Under Armour Inc 2013)

Between 2002 and 2004 UA opened product lines dedicated to women children

and golfers These strategic moves positioned Under Armour to make a serious

business move In 2005 the company went public thrusting the company into an

entirely new level of business operations

In the years to follow UA set its sights on developing products to provide for the

elite from head to toe The company publicly outfitted athletic greats such as Ray

Lewis Georges St-Pierre and even Michael Phelps To further the success of the firm

Under Armour opened a European Headquarters extending the companies reach By

the end of 2010 UA broke the $1 billion market on their yearly revenue

U A S t r a t e g i c P l a n | 5

Presently UA continues their success by expanding and remaining true to

athletes Kevin Plankrsquos dedication to improving products to help competitors excel has

served as the foundation for how the company operates on a daily basis

Mission Statement

ldquoTo make all athletes better through passion design and the relentless pursuit of

innovationrdquo (Under Armour Inc 2013) UA publicly advertises their company mission

and it has served them well Providing broad guidance to keep their employees

motivated and innovative to address the needs of the athlete from the elite professional

to the average everyday active person

Corporate Values

Under Armour sports a thorough Code of Conduct realizing the success and

reputation of a business lies in the hands of each and every one of the companyrsquos

employees The company goes so far as to outline a Code of Conduct for their

suppliers and subcontractors refusing to do business with outside parties that do not

comply with the firmrsquos values

Business Objectives

Although it is difficult to find a well defined formal business objective published

for the masses there are general directions the company is heading In an article from

2011 Kevin Plank revealed the goal for the company is to break the $2 billion market

for annual revenue After a successful year in 2012 where Under Armour produced an

U A S t r a t e g i c P l a n | 6

annual revenue of $183 billion the company is well on its way to achieving that

milestone

All throughout the internet and from interviews with Kevin Plank itrsquos obvious UA

has its sights set on Nike Nike is one of the most well-known athletic apparel

companies in the world and one of the main competitors for Under Armour Itrsquos no

secret Mr Plank wants to be on the same level as Nike This is a lofty goal considering

Nikersquos annual revenue is over 12 times that of UA reportedly topping out at

approximately $24 billion (Burke 2013)

U A S t r a t e g i c P l a n | 7

SWOT Analysis

Strengths

Customer loyalty

Brand equity

Innovation

High quality apparel

Consistent improvement of sales

(Annual reports show consistent

growth from year to year)

Wide range of apparel

Athlete and team sponsorships and

endorsements

Weaknesses

Small company compared to Nike

and Adidas

Heavily dependent on domestic

market small international

presence

High prices

Loss of military market (UA

products are not fire retardant)

Advertising and marketing

Target male audience more so than

a female audience

U A S t r a t e g i c P l a n | 8

Opportunities

Economic recovery

Consumer focus on quality (not

price)

Lower prices of products

Patent and license UA products and

technology

Consumers becoming more health

conscious

Sport participation is a key aspect

of US Culture

Diversify branch outside of sporting

apparel

Threats

Intense competition (Nike Adidas

etc)

Male dominant focus

Obesity rates in the US

Substitute products within the

market

Increased cost of raw materials

Inability to properly manage rapid

growth rate

Key Strategies

Moving forward Under Armour wants to be on a level playing field with big

companies like Nike and Adidas In order to do this UA needs to expand and gain

control of the market There are many different avenues and opportunities available to

Mr Plank and his team to gain ground against UArsquos competitors

The most obvious key to long term success is expansion According to an

investor day presentation given by UA reps the company currently expects to expand

from 114 stores to 141(Investor day 2013 2013) This strategic move will nearly

double the square footage of Under Armour stores with each store averaging 7700

square feet per store This will increase the ability of Under Armour to sell directly to the

customer and bypass distributors like Dickrsquos or Sports Authority

U A S t r a t e g i c P l a n | 9

UA admitted in their 2012 Annual Report that expanding too rapidly can cause

more harm than good For this reason it is critical for Under Armour leadership to

ensure the company has a solid foundation in their management processes and

suppliers to support rapid growth Since UArsquos induction to the present day the

company has done a good job managing the rapid growth and success However if the

company truly wants to break $4 billion in revenue in 2016 which they stated during

their last Investor Day conference management needs to take the proper steps now to

ensure all the logistics are accounted for The projected $4 billion is vastly less than

UArsquos main competitor Nike however Nike has already solved the problem of sustaining

such a large operation Under Armour on the other hand has yet to implement

processes to adequately manage an organization of that caliber

Another key strategy which will significantly aid in the overarching objective of

expansion is for UA to further diversify their product line There are many opportunities

within the market for Under Armour to attract new customers and gain their loyalty and

business For example UA is primarily focused towards a fit male target audience with

a drastically smaller percentage of their inventory dedicated to women and children

Placing additional emphasis on product lines for a non-adult target group could prove

beneficial to the company

Major Goals

The strategy goal of Under Armour is to grow to a level that can produce an

annual revenue larger than Nike and all other competitors within the industry In order

to accomplish this it requires UA to expand and continue their upward trend of success

U A S t r a t e g i c P l a n | 10

The major goal and overall focus of the company should be to solidify all of the

logistics and external factors involved with Under Armour operations

Those external factors include but are not limited to securing suppliers so UA

can continue to stock their shelves on a larger scale hiring and developing more

employees to manager operations working with the international community to ease

entry into new markets etc It may be easy for a firm to build more stores and produce

additional items but what is not as simple is creating a process and establishing

contracts and relationships to sustain the surge in operations The development of this

sustainable process could be one of the most challenging aspects of Under Armourrsquos

growth and success into the future

Once Under Armour can guarantee all the aspects to support continued growth

only then can management divert their focus elsewhere Management can then look to

diversify the company possibly expanding to a product line outside the realm of sports

The diversification of Under Armour could be an excellent source of revenue and a

chance to earn the loyalty of a new kind of consumer

Regarding a tentative time line for these major goals the key to success will be

having patience and staying on track To the aspect of securing logistics for large scale

operations there is no defined timeframe it will be an ongoing process requiring

continual evaluation In a market where business can be done real-time from across

the world and partners can interact on a daily basis from afar when business decisions

need to be made quickly To ensure the logistics of the company are stable and always

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 2

Overview

Under Armour is a worldwide distributor of athletic apparel footwear and

accessories The company got its start when a young University of Maryland football

player got tired of constantly changing sweat-soaked shirts between practices Since

then the now CEO of Under Armour Kevin Plank has taken the company that started

with a single product engineered out of synthetic fibers and transformed it into a global

competitor in the market place

Under Armour is a rapidly growing business reporting annual revenue of $183

billion at the end of 2012 up from their $85641 million published at the end of 2009

(Under Armour Inc 2012) This is a far cry from the early days of the company in

U A S t r a t e g i c P l a n | 3

1996 when UA was lucky to generate a meager $17000 in sales Since UArsquos entry into

the market they have made serious progress to establish themselves as a successful

business and a real competitor to other companies within the market such as the

athletic giant Nike

Today Under Armourrsquos inventory has expanded from the original compression t-

shirt to a product line including a full line of athletic shirts and shorts to footwear

jackets bags cold weather garments and more Kevin Plankrsquos products are sold in

nearly every athletic apparel story across the United States and in many international

market places Additionally UA has secured its place in the professional arena by

becoming ldquothe official footwear supplier of the NFL and MLB and partners with the NBArdquo

(Yahoo finance 2013) This company has successfully claimed a prominent place in

the market and has shown no signs of slowing their expansion and determination to

achieve business success

History

As mentioned earlier the concept that

sparked the Under Armour Company was

based upon a problem involving consistently

soaked shirts from sweat Kevin Plank was

determined to find an easier way for him and

fellow athletes to push themselves physically

without having to tolerate wet hot and

uncomfortable under garments After

U A S t r a t e g i c P l a n | 4

researching the benefits of synthetic materials and their applications he developed a t-

shirt he named 0037 (Under Armour Inc 2013) The innovative shirt helped keep

athletes cool and dry even on the hottest of days This product quickly became popular

with athletes serving as the first test for the emerging business

UA continued to conduct business on a relatively small scale until his advertising

strategy caught traction In 1999 Under Armour partnered up with the movie industry

providing apparel to the cast of Any Given Sunday In the movie Mr Plankrsquos products

were worn during iconic scenes in the movie inspiring UA to expand their advertising to

ESPN magazine For the small growing business at the time this move was risky but

paid off in the end by spreading the word of Under Armour products and boosting sales

by $750000 (Under Armour Inc 2013)

Between 2002 and 2004 UA opened product lines dedicated to women children

and golfers These strategic moves positioned Under Armour to make a serious

business move In 2005 the company went public thrusting the company into an

entirely new level of business operations

In the years to follow UA set its sights on developing products to provide for the

elite from head to toe The company publicly outfitted athletic greats such as Ray

Lewis Georges St-Pierre and even Michael Phelps To further the success of the firm

Under Armour opened a European Headquarters extending the companies reach By

the end of 2010 UA broke the $1 billion market on their yearly revenue

U A S t r a t e g i c P l a n | 5

Presently UA continues their success by expanding and remaining true to

athletes Kevin Plankrsquos dedication to improving products to help competitors excel has

served as the foundation for how the company operates on a daily basis

Mission Statement

ldquoTo make all athletes better through passion design and the relentless pursuit of

innovationrdquo (Under Armour Inc 2013) UA publicly advertises their company mission

and it has served them well Providing broad guidance to keep their employees

motivated and innovative to address the needs of the athlete from the elite professional

to the average everyday active person

Corporate Values

Under Armour sports a thorough Code of Conduct realizing the success and

reputation of a business lies in the hands of each and every one of the companyrsquos

employees The company goes so far as to outline a Code of Conduct for their

suppliers and subcontractors refusing to do business with outside parties that do not

comply with the firmrsquos values

Business Objectives

Although it is difficult to find a well defined formal business objective published

for the masses there are general directions the company is heading In an article from

2011 Kevin Plank revealed the goal for the company is to break the $2 billion market

for annual revenue After a successful year in 2012 where Under Armour produced an

U A S t r a t e g i c P l a n | 6

annual revenue of $183 billion the company is well on its way to achieving that

milestone

All throughout the internet and from interviews with Kevin Plank itrsquos obvious UA

has its sights set on Nike Nike is one of the most well-known athletic apparel

companies in the world and one of the main competitors for Under Armour Itrsquos no

secret Mr Plank wants to be on the same level as Nike This is a lofty goal considering

Nikersquos annual revenue is over 12 times that of UA reportedly topping out at

approximately $24 billion (Burke 2013)

U A S t r a t e g i c P l a n | 7

SWOT Analysis

Strengths

Customer loyalty

Brand equity

Innovation

High quality apparel

Consistent improvement of sales

(Annual reports show consistent

growth from year to year)

Wide range of apparel

Athlete and team sponsorships and

endorsements

Weaknesses

Small company compared to Nike

and Adidas

Heavily dependent on domestic

market small international

presence

High prices

Loss of military market (UA

products are not fire retardant)

Advertising and marketing

Target male audience more so than

a female audience

U A S t r a t e g i c P l a n | 8

Opportunities

Economic recovery

Consumer focus on quality (not

price)

Lower prices of products

Patent and license UA products and

technology

Consumers becoming more health

conscious

Sport participation is a key aspect

of US Culture

Diversify branch outside of sporting

apparel

Threats

Intense competition (Nike Adidas

etc)

Male dominant focus

Obesity rates in the US

Substitute products within the

market

Increased cost of raw materials

Inability to properly manage rapid

growth rate

Key Strategies

Moving forward Under Armour wants to be on a level playing field with big

companies like Nike and Adidas In order to do this UA needs to expand and gain

control of the market There are many different avenues and opportunities available to

Mr Plank and his team to gain ground against UArsquos competitors

The most obvious key to long term success is expansion According to an

investor day presentation given by UA reps the company currently expects to expand

from 114 stores to 141(Investor day 2013 2013) This strategic move will nearly

double the square footage of Under Armour stores with each store averaging 7700

square feet per store This will increase the ability of Under Armour to sell directly to the

customer and bypass distributors like Dickrsquos or Sports Authority

U A S t r a t e g i c P l a n | 9

UA admitted in their 2012 Annual Report that expanding too rapidly can cause

more harm than good For this reason it is critical for Under Armour leadership to

ensure the company has a solid foundation in their management processes and

suppliers to support rapid growth Since UArsquos induction to the present day the

company has done a good job managing the rapid growth and success However if the

company truly wants to break $4 billion in revenue in 2016 which they stated during

their last Investor Day conference management needs to take the proper steps now to

ensure all the logistics are accounted for The projected $4 billion is vastly less than

UArsquos main competitor Nike however Nike has already solved the problem of sustaining

such a large operation Under Armour on the other hand has yet to implement

processes to adequately manage an organization of that caliber

Another key strategy which will significantly aid in the overarching objective of

expansion is for UA to further diversify their product line There are many opportunities

within the market for Under Armour to attract new customers and gain their loyalty and

business For example UA is primarily focused towards a fit male target audience with

a drastically smaller percentage of their inventory dedicated to women and children

Placing additional emphasis on product lines for a non-adult target group could prove

beneficial to the company

Major Goals

The strategy goal of Under Armour is to grow to a level that can produce an

annual revenue larger than Nike and all other competitors within the industry In order

to accomplish this it requires UA to expand and continue their upward trend of success

U A S t r a t e g i c P l a n | 10

The major goal and overall focus of the company should be to solidify all of the

logistics and external factors involved with Under Armour operations

Those external factors include but are not limited to securing suppliers so UA

can continue to stock their shelves on a larger scale hiring and developing more

employees to manager operations working with the international community to ease

entry into new markets etc It may be easy for a firm to build more stores and produce

additional items but what is not as simple is creating a process and establishing

contracts and relationships to sustain the surge in operations The development of this

sustainable process could be one of the most challenging aspects of Under Armourrsquos

growth and success into the future

Once Under Armour can guarantee all the aspects to support continued growth

only then can management divert their focus elsewhere Management can then look to

diversify the company possibly expanding to a product line outside the realm of sports

The diversification of Under Armour could be an excellent source of revenue and a

chance to earn the loyalty of a new kind of consumer

Regarding a tentative time line for these major goals the key to success will be

having patience and staying on track To the aspect of securing logistics for large scale

operations there is no defined timeframe it will be an ongoing process requiring

continual evaluation In a market where business can be done real-time from across

the world and partners can interact on a daily basis from afar when business decisions

need to be made quickly To ensure the logistics of the company are stable and always

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 3

1996 when UA was lucky to generate a meager $17000 in sales Since UArsquos entry into

the market they have made serious progress to establish themselves as a successful

business and a real competitor to other companies within the market such as the

athletic giant Nike

Today Under Armourrsquos inventory has expanded from the original compression t-

shirt to a product line including a full line of athletic shirts and shorts to footwear

jackets bags cold weather garments and more Kevin Plankrsquos products are sold in

nearly every athletic apparel story across the United States and in many international

market places Additionally UA has secured its place in the professional arena by

becoming ldquothe official footwear supplier of the NFL and MLB and partners with the NBArdquo

(Yahoo finance 2013) This company has successfully claimed a prominent place in

the market and has shown no signs of slowing their expansion and determination to

achieve business success

History

As mentioned earlier the concept that

sparked the Under Armour Company was

based upon a problem involving consistently

soaked shirts from sweat Kevin Plank was

determined to find an easier way for him and

fellow athletes to push themselves physically

without having to tolerate wet hot and

uncomfortable under garments After

U A S t r a t e g i c P l a n | 4

researching the benefits of synthetic materials and their applications he developed a t-

shirt he named 0037 (Under Armour Inc 2013) The innovative shirt helped keep

athletes cool and dry even on the hottest of days This product quickly became popular

with athletes serving as the first test for the emerging business

UA continued to conduct business on a relatively small scale until his advertising

strategy caught traction In 1999 Under Armour partnered up with the movie industry

providing apparel to the cast of Any Given Sunday In the movie Mr Plankrsquos products

were worn during iconic scenes in the movie inspiring UA to expand their advertising to

ESPN magazine For the small growing business at the time this move was risky but

paid off in the end by spreading the word of Under Armour products and boosting sales

by $750000 (Under Armour Inc 2013)

Between 2002 and 2004 UA opened product lines dedicated to women children

and golfers These strategic moves positioned Under Armour to make a serious

business move In 2005 the company went public thrusting the company into an

entirely new level of business operations

In the years to follow UA set its sights on developing products to provide for the

elite from head to toe The company publicly outfitted athletic greats such as Ray

Lewis Georges St-Pierre and even Michael Phelps To further the success of the firm

Under Armour opened a European Headquarters extending the companies reach By

the end of 2010 UA broke the $1 billion market on their yearly revenue

U A S t r a t e g i c P l a n | 5

Presently UA continues their success by expanding and remaining true to

athletes Kevin Plankrsquos dedication to improving products to help competitors excel has

served as the foundation for how the company operates on a daily basis

Mission Statement

ldquoTo make all athletes better through passion design and the relentless pursuit of

innovationrdquo (Under Armour Inc 2013) UA publicly advertises their company mission

and it has served them well Providing broad guidance to keep their employees

motivated and innovative to address the needs of the athlete from the elite professional

to the average everyday active person

Corporate Values

Under Armour sports a thorough Code of Conduct realizing the success and

reputation of a business lies in the hands of each and every one of the companyrsquos

employees The company goes so far as to outline a Code of Conduct for their

suppliers and subcontractors refusing to do business with outside parties that do not

comply with the firmrsquos values

Business Objectives

Although it is difficult to find a well defined formal business objective published

for the masses there are general directions the company is heading In an article from

2011 Kevin Plank revealed the goal for the company is to break the $2 billion market

for annual revenue After a successful year in 2012 where Under Armour produced an

U A S t r a t e g i c P l a n | 6

annual revenue of $183 billion the company is well on its way to achieving that

milestone

All throughout the internet and from interviews with Kevin Plank itrsquos obvious UA

has its sights set on Nike Nike is one of the most well-known athletic apparel

companies in the world and one of the main competitors for Under Armour Itrsquos no

secret Mr Plank wants to be on the same level as Nike This is a lofty goal considering

Nikersquos annual revenue is over 12 times that of UA reportedly topping out at

approximately $24 billion (Burke 2013)

U A S t r a t e g i c P l a n | 7

SWOT Analysis

Strengths

Customer loyalty

Brand equity

Innovation

High quality apparel

Consistent improvement of sales

(Annual reports show consistent

growth from year to year)

Wide range of apparel

Athlete and team sponsorships and

endorsements

Weaknesses

Small company compared to Nike

and Adidas

Heavily dependent on domestic

market small international

presence

High prices

Loss of military market (UA

products are not fire retardant)

Advertising and marketing

Target male audience more so than

a female audience

U A S t r a t e g i c P l a n | 8

Opportunities

Economic recovery

Consumer focus on quality (not

price)

Lower prices of products

Patent and license UA products and

technology

Consumers becoming more health

conscious

Sport participation is a key aspect

of US Culture

Diversify branch outside of sporting

apparel

Threats

Intense competition (Nike Adidas

etc)

Male dominant focus

Obesity rates in the US

Substitute products within the

market

Increased cost of raw materials

Inability to properly manage rapid

growth rate

Key Strategies

Moving forward Under Armour wants to be on a level playing field with big

companies like Nike and Adidas In order to do this UA needs to expand and gain

control of the market There are many different avenues and opportunities available to

Mr Plank and his team to gain ground against UArsquos competitors

The most obvious key to long term success is expansion According to an

investor day presentation given by UA reps the company currently expects to expand

from 114 stores to 141(Investor day 2013 2013) This strategic move will nearly

double the square footage of Under Armour stores with each store averaging 7700

square feet per store This will increase the ability of Under Armour to sell directly to the

customer and bypass distributors like Dickrsquos or Sports Authority

U A S t r a t e g i c P l a n | 9

UA admitted in their 2012 Annual Report that expanding too rapidly can cause

more harm than good For this reason it is critical for Under Armour leadership to

ensure the company has a solid foundation in their management processes and

suppliers to support rapid growth Since UArsquos induction to the present day the

company has done a good job managing the rapid growth and success However if the

company truly wants to break $4 billion in revenue in 2016 which they stated during

their last Investor Day conference management needs to take the proper steps now to

ensure all the logistics are accounted for The projected $4 billion is vastly less than

UArsquos main competitor Nike however Nike has already solved the problem of sustaining

such a large operation Under Armour on the other hand has yet to implement

processes to adequately manage an organization of that caliber

Another key strategy which will significantly aid in the overarching objective of

expansion is for UA to further diversify their product line There are many opportunities

within the market for Under Armour to attract new customers and gain their loyalty and

business For example UA is primarily focused towards a fit male target audience with

a drastically smaller percentage of their inventory dedicated to women and children

Placing additional emphasis on product lines for a non-adult target group could prove

beneficial to the company

Major Goals

The strategy goal of Under Armour is to grow to a level that can produce an

annual revenue larger than Nike and all other competitors within the industry In order

to accomplish this it requires UA to expand and continue their upward trend of success

U A S t r a t e g i c P l a n | 10

The major goal and overall focus of the company should be to solidify all of the

logistics and external factors involved with Under Armour operations

Those external factors include but are not limited to securing suppliers so UA

can continue to stock their shelves on a larger scale hiring and developing more

employees to manager operations working with the international community to ease

entry into new markets etc It may be easy for a firm to build more stores and produce

additional items but what is not as simple is creating a process and establishing

contracts and relationships to sustain the surge in operations The development of this

sustainable process could be one of the most challenging aspects of Under Armourrsquos

growth and success into the future

Once Under Armour can guarantee all the aspects to support continued growth

only then can management divert their focus elsewhere Management can then look to

diversify the company possibly expanding to a product line outside the realm of sports

The diversification of Under Armour could be an excellent source of revenue and a

chance to earn the loyalty of a new kind of consumer

Regarding a tentative time line for these major goals the key to success will be

having patience and staying on track To the aspect of securing logistics for large scale

operations there is no defined timeframe it will be an ongoing process requiring

continual evaluation In a market where business can be done real-time from across

the world and partners can interact on a daily basis from afar when business decisions

need to be made quickly To ensure the logistics of the company are stable and always

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 4

researching the benefits of synthetic materials and their applications he developed a t-

shirt he named 0037 (Under Armour Inc 2013) The innovative shirt helped keep

athletes cool and dry even on the hottest of days This product quickly became popular

with athletes serving as the first test for the emerging business

UA continued to conduct business on a relatively small scale until his advertising

strategy caught traction In 1999 Under Armour partnered up with the movie industry

providing apparel to the cast of Any Given Sunday In the movie Mr Plankrsquos products

were worn during iconic scenes in the movie inspiring UA to expand their advertising to

ESPN magazine For the small growing business at the time this move was risky but

paid off in the end by spreading the word of Under Armour products and boosting sales

by $750000 (Under Armour Inc 2013)

Between 2002 and 2004 UA opened product lines dedicated to women children

and golfers These strategic moves positioned Under Armour to make a serious

business move In 2005 the company went public thrusting the company into an

entirely new level of business operations

In the years to follow UA set its sights on developing products to provide for the

elite from head to toe The company publicly outfitted athletic greats such as Ray

Lewis Georges St-Pierre and even Michael Phelps To further the success of the firm

Under Armour opened a European Headquarters extending the companies reach By

the end of 2010 UA broke the $1 billion market on their yearly revenue

U A S t r a t e g i c P l a n | 5

Presently UA continues their success by expanding and remaining true to

athletes Kevin Plankrsquos dedication to improving products to help competitors excel has

served as the foundation for how the company operates on a daily basis

Mission Statement

ldquoTo make all athletes better through passion design and the relentless pursuit of

innovationrdquo (Under Armour Inc 2013) UA publicly advertises their company mission

and it has served them well Providing broad guidance to keep their employees

motivated and innovative to address the needs of the athlete from the elite professional

to the average everyday active person

Corporate Values

Under Armour sports a thorough Code of Conduct realizing the success and

reputation of a business lies in the hands of each and every one of the companyrsquos

employees The company goes so far as to outline a Code of Conduct for their

suppliers and subcontractors refusing to do business with outside parties that do not

comply with the firmrsquos values

Business Objectives

Although it is difficult to find a well defined formal business objective published

for the masses there are general directions the company is heading In an article from

2011 Kevin Plank revealed the goal for the company is to break the $2 billion market

for annual revenue After a successful year in 2012 where Under Armour produced an

U A S t r a t e g i c P l a n | 6

annual revenue of $183 billion the company is well on its way to achieving that

milestone

All throughout the internet and from interviews with Kevin Plank itrsquos obvious UA

has its sights set on Nike Nike is one of the most well-known athletic apparel

companies in the world and one of the main competitors for Under Armour Itrsquos no

secret Mr Plank wants to be on the same level as Nike This is a lofty goal considering

Nikersquos annual revenue is over 12 times that of UA reportedly topping out at

approximately $24 billion (Burke 2013)

U A S t r a t e g i c P l a n | 7

SWOT Analysis

Strengths

Customer loyalty

Brand equity

Innovation

High quality apparel

Consistent improvement of sales

(Annual reports show consistent

growth from year to year)

Wide range of apparel

Athlete and team sponsorships and

endorsements

Weaknesses

Small company compared to Nike

and Adidas

Heavily dependent on domestic

market small international

presence

High prices

Loss of military market (UA

products are not fire retardant)

Advertising and marketing

Target male audience more so than

a female audience

U A S t r a t e g i c P l a n | 8

Opportunities

Economic recovery

Consumer focus on quality (not

price)

Lower prices of products

Patent and license UA products and

technology

Consumers becoming more health

conscious

Sport participation is a key aspect

of US Culture

Diversify branch outside of sporting

apparel

Threats

Intense competition (Nike Adidas

etc)

Male dominant focus

Obesity rates in the US

Substitute products within the

market

Increased cost of raw materials

Inability to properly manage rapid

growth rate

Key Strategies

Moving forward Under Armour wants to be on a level playing field with big

companies like Nike and Adidas In order to do this UA needs to expand and gain

control of the market There are many different avenues and opportunities available to

Mr Plank and his team to gain ground against UArsquos competitors

The most obvious key to long term success is expansion According to an

investor day presentation given by UA reps the company currently expects to expand

from 114 stores to 141(Investor day 2013 2013) This strategic move will nearly

double the square footage of Under Armour stores with each store averaging 7700

square feet per store This will increase the ability of Under Armour to sell directly to the

customer and bypass distributors like Dickrsquos or Sports Authority

U A S t r a t e g i c P l a n | 9

UA admitted in their 2012 Annual Report that expanding too rapidly can cause

more harm than good For this reason it is critical for Under Armour leadership to

ensure the company has a solid foundation in their management processes and

suppliers to support rapid growth Since UArsquos induction to the present day the

company has done a good job managing the rapid growth and success However if the

company truly wants to break $4 billion in revenue in 2016 which they stated during

their last Investor Day conference management needs to take the proper steps now to

ensure all the logistics are accounted for The projected $4 billion is vastly less than

UArsquos main competitor Nike however Nike has already solved the problem of sustaining

such a large operation Under Armour on the other hand has yet to implement

processes to adequately manage an organization of that caliber

Another key strategy which will significantly aid in the overarching objective of

expansion is for UA to further diversify their product line There are many opportunities

within the market for Under Armour to attract new customers and gain their loyalty and

business For example UA is primarily focused towards a fit male target audience with

a drastically smaller percentage of their inventory dedicated to women and children

Placing additional emphasis on product lines for a non-adult target group could prove

beneficial to the company

Major Goals

The strategy goal of Under Armour is to grow to a level that can produce an

annual revenue larger than Nike and all other competitors within the industry In order

to accomplish this it requires UA to expand and continue their upward trend of success

U A S t r a t e g i c P l a n | 10

The major goal and overall focus of the company should be to solidify all of the

logistics and external factors involved with Under Armour operations

Those external factors include but are not limited to securing suppliers so UA

can continue to stock their shelves on a larger scale hiring and developing more

employees to manager operations working with the international community to ease

entry into new markets etc It may be easy for a firm to build more stores and produce

additional items but what is not as simple is creating a process and establishing

contracts and relationships to sustain the surge in operations The development of this

sustainable process could be one of the most challenging aspects of Under Armourrsquos

growth and success into the future

Once Under Armour can guarantee all the aspects to support continued growth

only then can management divert their focus elsewhere Management can then look to

diversify the company possibly expanding to a product line outside the realm of sports

The diversification of Under Armour could be an excellent source of revenue and a

chance to earn the loyalty of a new kind of consumer

Regarding a tentative time line for these major goals the key to success will be

having patience and staying on track To the aspect of securing logistics for large scale

operations there is no defined timeframe it will be an ongoing process requiring

continual evaluation In a market where business can be done real-time from across

the world and partners can interact on a daily basis from afar when business decisions

need to be made quickly To ensure the logistics of the company are stable and always

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 5

Presently UA continues their success by expanding and remaining true to

athletes Kevin Plankrsquos dedication to improving products to help competitors excel has

served as the foundation for how the company operates on a daily basis

Mission Statement

ldquoTo make all athletes better through passion design and the relentless pursuit of

innovationrdquo (Under Armour Inc 2013) UA publicly advertises their company mission

and it has served them well Providing broad guidance to keep their employees

motivated and innovative to address the needs of the athlete from the elite professional

to the average everyday active person

Corporate Values

Under Armour sports a thorough Code of Conduct realizing the success and

reputation of a business lies in the hands of each and every one of the companyrsquos

employees The company goes so far as to outline a Code of Conduct for their

suppliers and subcontractors refusing to do business with outside parties that do not

comply with the firmrsquos values

Business Objectives

Although it is difficult to find a well defined formal business objective published

for the masses there are general directions the company is heading In an article from

2011 Kevin Plank revealed the goal for the company is to break the $2 billion market

for annual revenue After a successful year in 2012 where Under Armour produced an

U A S t r a t e g i c P l a n | 6

annual revenue of $183 billion the company is well on its way to achieving that

milestone

All throughout the internet and from interviews with Kevin Plank itrsquos obvious UA

has its sights set on Nike Nike is one of the most well-known athletic apparel

companies in the world and one of the main competitors for Under Armour Itrsquos no

secret Mr Plank wants to be on the same level as Nike This is a lofty goal considering

Nikersquos annual revenue is over 12 times that of UA reportedly topping out at

approximately $24 billion (Burke 2013)

U A S t r a t e g i c P l a n | 7

SWOT Analysis

Strengths

Customer loyalty

Brand equity

Innovation

High quality apparel

Consistent improvement of sales

(Annual reports show consistent

growth from year to year)

Wide range of apparel

Athlete and team sponsorships and

endorsements

Weaknesses

Small company compared to Nike

and Adidas

Heavily dependent on domestic

market small international

presence

High prices

Loss of military market (UA

products are not fire retardant)

Advertising and marketing

Target male audience more so than

a female audience

U A S t r a t e g i c P l a n | 8

Opportunities

Economic recovery

Consumer focus on quality (not

price)

Lower prices of products

Patent and license UA products and

technology

Consumers becoming more health

conscious

Sport participation is a key aspect

of US Culture

Diversify branch outside of sporting

apparel

Threats

Intense competition (Nike Adidas

etc)

Male dominant focus

Obesity rates in the US

Substitute products within the

market

Increased cost of raw materials

Inability to properly manage rapid

growth rate

Key Strategies

Moving forward Under Armour wants to be on a level playing field with big

companies like Nike and Adidas In order to do this UA needs to expand and gain

control of the market There are many different avenues and opportunities available to

Mr Plank and his team to gain ground against UArsquos competitors

The most obvious key to long term success is expansion According to an

investor day presentation given by UA reps the company currently expects to expand

from 114 stores to 141(Investor day 2013 2013) This strategic move will nearly

double the square footage of Under Armour stores with each store averaging 7700

square feet per store This will increase the ability of Under Armour to sell directly to the

customer and bypass distributors like Dickrsquos or Sports Authority

U A S t r a t e g i c P l a n | 9

UA admitted in their 2012 Annual Report that expanding too rapidly can cause

more harm than good For this reason it is critical for Under Armour leadership to

ensure the company has a solid foundation in their management processes and

suppliers to support rapid growth Since UArsquos induction to the present day the

company has done a good job managing the rapid growth and success However if the

company truly wants to break $4 billion in revenue in 2016 which they stated during

their last Investor Day conference management needs to take the proper steps now to

ensure all the logistics are accounted for The projected $4 billion is vastly less than

UArsquos main competitor Nike however Nike has already solved the problem of sustaining

such a large operation Under Armour on the other hand has yet to implement

processes to adequately manage an organization of that caliber

Another key strategy which will significantly aid in the overarching objective of

expansion is for UA to further diversify their product line There are many opportunities

within the market for Under Armour to attract new customers and gain their loyalty and

business For example UA is primarily focused towards a fit male target audience with

a drastically smaller percentage of their inventory dedicated to women and children

Placing additional emphasis on product lines for a non-adult target group could prove

beneficial to the company

Major Goals

The strategy goal of Under Armour is to grow to a level that can produce an

annual revenue larger than Nike and all other competitors within the industry In order

to accomplish this it requires UA to expand and continue their upward trend of success

U A S t r a t e g i c P l a n | 10

The major goal and overall focus of the company should be to solidify all of the

logistics and external factors involved with Under Armour operations

Those external factors include but are not limited to securing suppliers so UA

can continue to stock their shelves on a larger scale hiring and developing more

employees to manager operations working with the international community to ease

entry into new markets etc It may be easy for a firm to build more stores and produce

additional items but what is not as simple is creating a process and establishing

contracts and relationships to sustain the surge in operations The development of this

sustainable process could be one of the most challenging aspects of Under Armourrsquos

growth and success into the future

Once Under Armour can guarantee all the aspects to support continued growth

only then can management divert their focus elsewhere Management can then look to

diversify the company possibly expanding to a product line outside the realm of sports

The diversification of Under Armour could be an excellent source of revenue and a

chance to earn the loyalty of a new kind of consumer

Regarding a tentative time line for these major goals the key to success will be

having patience and staying on track To the aspect of securing logistics for large scale

operations there is no defined timeframe it will be an ongoing process requiring

continual evaluation In a market where business can be done real-time from across

the world and partners can interact on a daily basis from afar when business decisions

need to be made quickly To ensure the logistics of the company are stable and always

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 6

annual revenue of $183 billion the company is well on its way to achieving that

milestone

All throughout the internet and from interviews with Kevin Plank itrsquos obvious UA

has its sights set on Nike Nike is one of the most well-known athletic apparel

companies in the world and one of the main competitors for Under Armour Itrsquos no

secret Mr Plank wants to be on the same level as Nike This is a lofty goal considering

Nikersquos annual revenue is over 12 times that of UA reportedly topping out at

approximately $24 billion (Burke 2013)

U A S t r a t e g i c P l a n | 7

SWOT Analysis

Strengths

Customer loyalty

Brand equity

Innovation

High quality apparel

Consistent improvement of sales

(Annual reports show consistent

growth from year to year)

Wide range of apparel

Athlete and team sponsorships and

endorsements

Weaknesses

Small company compared to Nike

and Adidas

Heavily dependent on domestic

market small international

presence

High prices

Loss of military market (UA

products are not fire retardant)

Advertising and marketing

Target male audience more so than

a female audience

U A S t r a t e g i c P l a n | 8

Opportunities

Economic recovery

Consumer focus on quality (not

price)

Lower prices of products

Patent and license UA products and

technology

Consumers becoming more health

conscious

Sport participation is a key aspect

of US Culture

Diversify branch outside of sporting

apparel

Threats

Intense competition (Nike Adidas

etc)

Male dominant focus

Obesity rates in the US

Substitute products within the

market

Increased cost of raw materials

Inability to properly manage rapid

growth rate

Key Strategies

Moving forward Under Armour wants to be on a level playing field with big

companies like Nike and Adidas In order to do this UA needs to expand and gain

control of the market There are many different avenues and opportunities available to

Mr Plank and his team to gain ground against UArsquos competitors

The most obvious key to long term success is expansion According to an

investor day presentation given by UA reps the company currently expects to expand

from 114 stores to 141(Investor day 2013 2013) This strategic move will nearly

double the square footage of Under Armour stores with each store averaging 7700

square feet per store This will increase the ability of Under Armour to sell directly to the

customer and bypass distributors like Dickrsquos or Sports Authority

U A S t r a t e g i c P l a n | 9

UA admitted in their 2012 Annual Report that expanding too rapidly can cause

more harm than good For this reason it is critical for Under Armour leadership to

ensure the company has a solid foundation in their management processes and

suppliers to support rapid growth Since UArsquos induction to the present day the

company has done a good job managing the rapid growth and success However if the

company truly wants to break $4 billion in revenue in 2016 which they stated during

their last Investor Day conference management needs to take the proper steps now to

ensure all the logistics are accounted for The projected $4 billion is vastly less than

UArsquos main competitor Nike however Nike has already solved the problem of sustaining

such a large operation Under Armour on the other hand has yet to implement

processes to adequately manage an organization of that caliber

Another key strategy which will significantly aid in the overarching objective of

expansion is for UA to further diversify their product line There are many opportunities

within the market for Under Armour to attract new customers and gain their loyalty and

business For example UA is primarily focused towards a fit male target audience with

a drastically smaller percentage of their inventory dedicated to women and children

Placing additional emphasis on product lines for a non-adult target group could prove

beneficial to the company

Major Goals

The strategy goal of Under Armour is to grow to a level that can produce an

annual revenue larger than Nike and all other competitors within the industry In order

to accomplish this it requires UA to expand and continue their upward trend of success

U A S t r a t e g i c P l a n | 10

The major goal and overall focus of the company should be to solidify all of the

logistics and external factors involved with Under Armour operations

Those external factors include but are not limited to securing suppliers so UA

can continue to stock their shelves on a larger scale hiring and developing more

employees to manager operations working with the international community to ease

entry into new markets etc It may be easy for a firm to build more stores and produce

additional items but what is not as simple is creating a process and establishing

contracts and relationships to sustain the surge in operations The development of this

sustainable process could be one of the most challenging aspects of Under Armourrsquos

growth and success into the future

Once Under Armour can guarantee all the aspects to support continued growth

only then can management divert their focus elsewhere Management can then look to

diversify the company possibly expanding to a product line outside the realm of sports

The diversification of Under Armour could be an excellent source of revenue and a

chance to earn the loyalty of a new kind of consumer

Regarding a tentative time line for these major goals the key to success will be

having patience and staying on track To the aspect of securing logistics for large scale

operations there is no defined timeframe it will be an ongoing process requiring

continual evaluation In a market where business can be done real-time from across

the world and partners can interact on a daily basis from afar when business decisions

need to be made quickly To ensure the logistics of the company are stable and always

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 7

SWOT Analysis

Strengths

Customer loyalty

Brand equity

Innovation

High quality apparel

Consistent improvement of sales

(Annual reports show consistent

growth from year to year)

Wide range of apparel

Athlete and team sponsorships and

endorsements

Weaknesses

Small company compared to Nike

and Adidas

Heavily dependent on domestic

market small international

presence

High prices

Loss of military market (UA

products are not fire retardant)

Advertising and marketing

Target male audience more so than

a female audience

U A S t r a t e g i c P l a n | 8

Opportunities

Economic recovery

Consumer focus on quality (not

price)

Lower prices of products

Patent and license UA products and

technology

Consumers becoming more health

conscious

Sport participation is a key aspect

of US Culture

Diversify branch outside of sporting

apparel

Threats

Intense competition (Nike Adidas

etc)

Male dominant focus

Obesity rates in the US

Substitute products within the

market

Increased cost of raw materials

Inability to properly manage rapid

growth rate

Key Strategies

Moving forward Under Armour wants to be on a level playing field with big

companies like Nike and Adidas In order to do this UA needs to expand and gain

control of the market There are many different avenues and opportunities available to

Mr Plank and his team to gain ground against UArsquos competitors

The most obvious key to long term success is expansion According to an

investor day presentation given by UA reps the company currently expects to expand

from 114 stores to 141(Investor day 2013 2013) This strategic move will nearly

double the square footage of Under Armour stores with each store averaging 7700

square feet per store This will increase the ability of Under Armour to sell directly to the

customer and bypass distributors like Dickrsquos or Sports Authority

U A S t r a t e g i c P l a n | 9

UA admitted in their 2012 Annual Report that expanding too rapidly can cause

more harm than good For this reason it is critical for Under Armour leadership to

ensure the company has a solid foundation in their management processes and

suppliers to support rapid growth Since UArsquos induction to the present day the

company has done a good job managing the rapid growth and success However if the

company truly wants to break $4 billion in revenue in 2016 which they stated during

their last Investor Day conference management needs to take the proper steps now to

ensure all the logistics are accounted for The projected $4 billion is vastly less than

UArsquos main competitor Nike however Nike has already solved the problem of sustaining

such a large operation Under Armour on the other hand has yet to implement

processes to adequately manage an organization of that caliber

Another key strategy which will significantly aid in the overarching objective of

expansion is for UA to further diversify their product line There are many opportunities

within the market for Under Armour to attract new customers and gain their loyalty and

business For example UA is primarily focused towards a fit male target audience with

a drastically smaller percentage of their inventory dedicated to women and children

Placing additional emphasis on product lines for a non-adult target group could prove

beneficial to the company

Major Goals

The strategy goal of Under Armour is to grow to a level that can produce an

annual revenue larger than Nike and all other competitors within the industry In order

to accomplish this it requires UA to expand and continue their upward trend of success

U A S t r a t e g i c P l a n | 10

The major goal and overall focus of the company should be to solidify all of the

logistics and external factors involved with Under Armour operations

Those external factors include but are not limited to securing suppliers so UA

can continue to stock their shelves on a larger scale hiring and developing more

employees to manager operations working with the international community to ease

entry into new markets etc It may be easy for a firm to build more stores and produce

additional items but what is not as simple is creating a process and establishing

contracts and relationships to sustain the surge in operations The development of this

sustainable process could be one of the most challenging aspects of Under Armourrsquos

growth and success into the future

Once Under Armour can guarantee all the aspects to support continued growth

only then can management divert their focus elsewhere Management can then look to

diversify the company possibly expanding to a product line outside the realm of sports

The diversification of Under Armour could be an excellent source of revenue and a

chance to earn the loyalty of a new kind of consumer

Regarding a tentative time line for these major goals the key to success will be

having patience and staying on track To the aspect of securing logistics for large scale

operations there is no defined timeframe it will be an ongoing process requiring

continual evaluation In a market where business can be done real-time from across

the world and partners can interact on a daily basis from afar when business decisions

need to be made quickly To ensure the logistics of the company are stable and always

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 8

Opportunities

Economic recovery

Consumer focus on quality (not

price)

Lower prices of products

Patent and license UA products and

technology

Consumers becoming more health

conscious

Sport participation is a key aspect

of US Culture

Diversify branch outside of sporting

apparel

Threats

Intense competition (Nike Adidas

etc)

Male dominant focus

Obesity rates in the US

Substitute products within the

market

Increased cost of raw materials

Inability to properly manage rapid

growth rate

Key Strategies

Moving forward Under Armour wants to be on a level playing field with big

companies like Nike and Adidas In order to do this UA needs to expand and gain

control of the market There are many different avenues and opportunities available to

Mr Plank and his team to gain ground against UArsquos competitors

The most obvious key to long term success is expansion According to an

investor day presentation given by UA reps the company currently expects to expand

from 114 stores to 141(Investor day 2013 2013) This strategic move will nearly

double the square footage of Under Armour stores with each store averaging 7700

square feet per store This will increase the ability of Under Armour to sell directly to the

customer and bypass distributors like Dickrsquos or Sports Authority

U A S t r a t e g i c P l a n | 9

UA admitted in their 2012 Annual Report that expanding too rapidly can cause

more harm than good For this reason it is critical for Under Armour leadership to

ensure the company has a solid foundation in their management processes and

suppliers to support rapid growth Since UArsquos induction to the present day the

company has done a good job managing the rapid growth and success However if the

company truly wants to break $4 billion in revenue in 2016 which they stated during

their last Investor Day conference management needs to take the proper steps now to

ensure all the logistics are accounted for The projected $4 billion is vastly less than

UArsquos main competitor Nike however Nike has already solved the problem of sustaining

such a large operation Under Armour on the other hand has yet to implement

processes to adequately manage an organization of that caliber

Another key strategy which will significantly aid in the overarching objective of

expansion is for UA to further diversify their product line There are many opportunities

within the market for Under Armour to attract new customers and gain their loyalty and

business For example UA is primarily focused towards a fit male target audience with

a drastically smaller percentage of their inventory dedicated to women and children

Placing additional emphasis on product lines for a non-adult target group could prove

beneficial to the company

Major Goals

The strategy goal of Under Armour is to grow to a level that can produce an

annual revenue larger than Nike and all other competitors within the industry In order

to accomplish this it requires UA to expand and continue their upward trend of success

U A S t r a t e g i c P l a n | 10

The major goal and overall focus of the company should be to solidify all of the

logistics and external factors involved with Under Armour operations

Those external factors include but are not limited to securing suppliers so UA

can continue to stock their shelves on a larger scale hiring and developing more

employees to manager operations working with the international community to ease

entry into new markets etc It may be easy for a firm to build more stores and produce

additional items but what is not as simple is creating a process and establishing

contracts and relationships to sustain the surge in operations The development of this

sustainable process could be one of the most challenging aspects of Under Armourrsquos

growth and success into the future

Once Under Armour can guarantee all the aspects to support continued growth

only then can management divert their focus elsewhere Management can then look to

diversify the company possibly expanding to a product line outside the realm of sports

The diversification of Under Armour could be an excellent source of revenue and a

chance to earn the loyalty of a new kind of consumer

Regarding a tentative time line for these major goals the key to success will be

having patience and staying on track To the aspect of securing logistics for large scale

operations there is no defined timeframe it will be an ongoing process requiring

continual evaluation In a market where business can be done real-time from across

the world and partners can interact on a daily basis from afar when business decisions

need to be made quickly To ensure the logistics of the company are stable and always

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 9

UA admitted in their 2012 Annual Report that expanding too rapidly can cause

more harm than good For this reason it is critical for Under Armour leadership to

ensure the company has a solid foundation in their management processes and

suppliers to support rapid growth Since UArsquos induction to the present day the

company has done a good job managing the rapid growth and success However if the

company truly wants to break $4 billion in revenue in 2016 which they stated during

their last Investor Day conference management needs to take the proper steps now to

ensure all the logistics are accounted for The projected $4 billion is vastly less than

UArsquos main competitor Nike however Nike has already solved the problem of sustaining

such a large operation Under Armour on the other hand has yet to implement

processes to adequately manage an organization of that caliber

Another key strategy which will significantly aid in the overarching objective of

expansion is for UA to further diversify their product line There are many opportunities

within the market for Under Armour to attract new customers and gain their loyalty and

business For example UA is primarily focused towards a fit male target audience with

a drastically smaller percentage of their inventory dedicated to women and children

Placing additional emphasis on product lines for a non-adult target group could prove

beneficial to the company

Major Goals

The strategy goal of Under Armour is to grow to a level that can produce an

annual revenue larger than Nike and all other competitors within the industry In order

to accomplish this it requires UA to expand and continue their upward trend of success

U A S t r a t e g i c P l a n | 10

The major goal and overall focus of the company should be to solidify all of the

logistics and external factors involved with Under Armour operations

Those external factors include but are not limited to securing suppliers so UA

can continue to stock their shelves on a larger scale hiring and developing more

employees to manager operations working with the international community to ease

entry into new markets etc It may be easy for a firm to build more stores and produce

additional items but what is not as simple is creating a process and establishing

contracts and relationships to sustain the surge in operations The development of this

sustainable process could be one of the most challenging aspects of Under Armourrsquos

growth and success into the future

Once Under Armour can guarantee all the aspects to support continued growth

only then can management divert their focus elsewhere Management can then look to

diversify the company possibly expanding to a product line outside the realm of sports

The diversification of Under Armour could be an excellent source of revenue and a

chance to earn the loyalty of a new kind of consumer

Regarding a tentative time line for these major goals the key to success will be

having patience and staying on track To the aspect of securing logistics for large scale

operations there is no defined timeframe it will be an ongoing process requiring

continual evaluation In a market where business can be done real-time from across

the world and partners can interact on a daily basis from afar when business decisions

need to be made quickly To ensure the logistics of the company are stable and always

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 10

The major goal and overall focus of the company should be to solidify all of the

logistics and external factors involved with Under Armour operations

Those external factors include but are not limited to securing suppliers so UA

can continue to stock their shelves on a larger scale hiring and developing more

employees to manager operations working with the international community to ease

entry into new markets etc It may be easy for a firm to build more stores and produce

additional items but what is not as simple is creating a process and establishing

contracts and relationships to sustain the surge in operations The development of this

sustainable process could be one of the most challenging aspects of Under Armourrsquos

growth and success into the future

Once Under Armour can guarantee all the aspects to support continued growth

only then can management divert their focus elsewhere Management can then look to

diversify the company possibly expanding to a product line outside the realm of sports

The diversification of Under Armour could be an excellent source of revenue and a

chance to earn the loyalty of a new kind of consumer

Regarding a tentative time line for these major goals the key to success will be

having patience and staying on track To the aspect of securing logistics for large scale

operations there is no defined timeframe it will be an ongoing process requiring

continual evaluation In a market where business can be done real-time from across

the world and partners can interact on a daily basis from afar when business decisions

need to be made quickly To ensure the logistics of the company are stable and always

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 11

available UA leadership needs to take a proactive stance to managing the relationship

and contracts with all parties involved

At this point in time the decision point for diversifying the Under Armour

inventory has passed until after 2016 From the Investor Day presentation Under

Armour has a plan to get them to 2016 and continue their success to achieve the $4

billion revenue goal Because the company most likely has a detailed plan of attack it

is best to not deviate but rather include diversification in the plan post 2016 The other

benefit to waiting to implement a plan of branching out is the additional time provided to

map a detailed plan and gauge how that plan will affect future operations

All of this will be for not if Under Armour loses sight of their mission Innovation

and design are two defining aspects to the UA business Fortunately evidence from an

article posted on dvicecom shows the company is holding true to their promise of

dedication to athletes Linked to the article is a commercial showing a vision of

incorporating technology into an interactive suit which for UA is not as far-fetched as

many would believe (Strange 2013)

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 12

Strategic Actions

What is important to take into account is Under Armour already has a plan of

action to carry them through to 2016 As briefed during their Investor Day Under

Armour has already laid out where they anticipate to make their revenue See the

graphics below to gain a better grasp on where UA expects to make their money

In the graphical depictions from UArsquos Investor Day 2013 below it is easy to

notice the additional revenue UA anticipates to bring in from womenrsquos apparel youth

apparel footwear and accessories Although menrsquos apparel will remain the prominent

avenue for profit for UA it is important to note through 2016 UA will be spreading the

focus of the products to place an increased focus on product lines outside that of menrsquos

apparel

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 13

Furthermore to address strategic actions already in place UA has recently

launched a new marketing campaign The ldquoI Willrdquo slogan and campaign has cost Under

Armour however the new marketing approach is expected to draw in additional crowds

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 14

and revenue for the company Leadership is confident this strategic move will aid in

helping the company reach the $4 billion in revenue by 2016 goal

Under Armour has also just recently adopted a new product line to add to their

inventory The new product is the Alter Ego line a rather simple concept but it has

already had huge success According to a recent article in The Baltimore Sun the

ldquomanufacturer found it had tapped into a new market selling out of the limited-edition

shirts within hoursrdquo (Korman 2013) The line is merely UArsquos common compression t-

shirt with superhero logos on them using the success of all of the recently released

superhero movies to spring board the companyrsquos sales

Beyond 2016 Under Armour needs to continue their growth rate and not stumble

if they are to catch up with a giant like Nike This will involve UA securing the necessary

level of support from their suppliers Once the company can confirm their raw materials

will be available to them to support growth in operations the company can press

forward

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 15

In order to accomplish this UA should conduct a thorough review of the

suppliersrsquo stability and product quality These quality assurance reviews should occur

annually at the very least Additionally Under Armour needs to review the standards of

the suppliers as outlined in UArsquos code of conduct These reviews should be executed

as outlined in the companyrsquos regulations The regulation states the inspections will be

carried out by a independent third party to verify the supplier is in accordance with all

application legislation and adhering to UArsquos code of conduct On the other hand the

last thing UArsquos needs is a case of unethical behavior on part of their supplier to ruin the

good name UA has worked so hard for ever since 1996

Secondly Under Armour must develop their management staff to oversee the

growth of the company and supervise the influx of new employees that will inevitably

occur to facilitate the expansion A trustworthy and competent staff is essential to the

success of a business and the foundation of that staff comes from effective leadership

and training Upper management must handpick the right people to put in positions of

responsibility to ensure this training program is established and the company stacks the

odds in its favor to maximize sales

Once the organization is confident in their selected team of supervisors the

company can take the steps of expanding globally Under Armour should by this time

have the appropriate funds to purchase facilities to serve as headquarters or stores to

conduct operations The staff will be prepped the supplies will be available and as

discussed earlier the marketing will already be underway The final component is

taking the product to the consumer and building a relationship to earn their loyalty

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 16

The global market can be an unforgiving environment but Under Armour has

already taken the steps to succeed in the market Under Armour has supplied and been

the official sponsor for many collegiate teams as well as teams at the professional level

This form of advertising is extremely effective and universal serving as a stepping stone

for earning a larger portion of the global market and simultaneously gaining ground

against the athletic apparel king Nike With Under Armourrsquos international revenue only

accounting for approximately 6 of UArsquos total revenue from this year there is a lot of

ground to be gained on the global level (Investor day 2013 2013) If UA is able to

remain on track the international revenue is slotted to account for nearly 12 of their

total revenue by the end of 2016

The finally key task to carry Under Armour to the next level is the further

diversification of their products to earn the business of consumers It is apparent Under

Armour is primarily focused on the male athlete but to the credit of the company has

taken steps to expand their target audience to women and children Also UA has

introduced some products outside what some could consider as athletic apparel This

trend needs to continue and additional focus should be put on a target market outside

that of male athletes This will help draw in additional revenue for the company

Measurement and Control

Measurement and control within UA should carry on as it has in the past

Leadership in the company provides defined goals and direction to their employees and

investors who in turn hold the company accountable for meeting those milestones

Take for example UArsquos goal to break $4 billion in revenue by 2016 The company

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 17

undoubtedly has a clearly mapped path to reaching this goal The responsibility falls

on all involved with the company to ensure the company reaches those goals on time

Under Armour has had great success in the past accomplishing this task and there is

little doubt they will have trouble keeping in suit as they progress into the future

Conclusion

Under Armour began as a single person Kevin Plank working in his

grandmotherrsquos basement selling a moisture wicking shirt to athletes to help keep them

cool during games and practice Since Under Armour went public in 2005 the company

has seen steady growth Sales have increased from $17000 in the first year to over

$22 billion expected at the end of this year and have published a set of goals to earn

over $4 billion in revenues by 2016

It is within the realm of reality for Under Armour to achieve their $4 billion

milestone but the overarching business goal of Under Armour is to dethrone Nike as the

largest athletic apparel company in the market This will require UA take the

appropriate strategic actions First UA needs to ensure their suppliers are able to

guarantee the raw materials will be available to facilitate the companyrsquos growth

Secondly Under Armourrsquos executive teams must properly prepare their management

staff and posture them for rapid and global expansion Finally Kevin Plank should

strive to further diversify the companyrsquos product lines with a strong emphasis on women

and children The targeting of new marketing audiences will help bring additional

revenue into the company thus bringing Under Armour closer to the level of Nike and

Adidas

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 18

If Under Armour is able to follow this guidance and meet the milestones and

goals already in place the company will be well on its way to stealing a large

percentage of the market from companies like Nike Kevin Plank need only apply his

new marketing campaign ldquoI Willrdquo to his business strategy and investors can sit back and

watch as UA grows into the number one position within the athletic apparel industry

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 19

References

Abhijeet S (2010 November 10) Swot analysis of under armour Retrieved from

httpwwwmanagementparadisecomarticle849swot-analysis-of-under-armour

Burke M (2013 March 04) Under armours kevin plank is the billionaire underdog

Retrieved from httpwwwforbescomsitesmonteburke20130304under-armours-

kevin-plank-is-the-billionaire-underdog

Investor day 2013 (2013) Under armour investor day 2013 Retrieved from

httpfilesshareholdercomdownloadsUARM2604259539x0x6701565C4A6AF7-

52AE-452B-BC3B-D173423CD32EID2013_-_Financial_Deck-_EXTERNALPDF

Korman C (2013 July 19) Under armour expands deal with dc comics re-launches

alter ego line The Baltimore Sun Retrieved from

httpwwwbaltimoresuncombusinessbaltimore-sports-blogbal-under-armour-alter-

ego-dc-comics04393356story

Reuters (2013 July) Under Armour Inc (ua) Retrieved from

httpwwwreuterscomfinancestockscompanyProfilesymbol=UA

Strange A (2013 February 13) Under armour shows off interactive running suit of the

future Retrieved from httpwwwdvicecom2013-2-13under-armour-shows-

interactive-running-suit-future

Teufel B (2011 March 17) Under armour Internal and swot analysis Retrieved from

httpwwwslidesharenetBrianTeufelassignment203-under-armour-internal-and-

swot-analysis-7700298

U A S t r a t e g i c P l a n | 20

Under armour inc - financial history (2012 Dec) Retrieved from

httpwwwuabizcomincomecfm

Under armour inc - history (2013 July) Retrieved from

httpwwwuabizcomcompanyhistorycfm

Under armour inc - our mission (2013 July) Retrieved from

httpwwwuabizcomcompanymissioncfm

Under armour (ua) swot analysis (nd) Retrieved from

httpwwwwikiwealthcomswot-analysisua

United States Securities and Exchange Commission (2012)Under armour inc (Form

10-K) Retrieved from website httpinvestorunderarmourcomannualscfm

Yahoo finance Under armour inc company profile (2013 July) Retrieved from

httpbizyahoocomic106106607html

U A S t r a t e g i c P l a n | 21

Pictures provided by

httpswwwgooglecomsearchsugexp=epsugrpqhmsignedinhmss23Dfalseampgs_rn=20ampgs_ri=psy-abamptok=N0RlCzu8b00JqXhP5UH4cQampcp=8ampgs_id=uampxhr=tampq=under+armour+swot+analysis+2013ampbav=on2orr_cpr_qfampbvm=bv49784469deWUampbiw=1600ampbih=785ampum=1ampie=UTF-8amphl=enamptbm=ischampsource=ogampsa=Namptab=wiampei=HbjyUZmOH4eG9QTf3oG4CAum=1amphl=enamptbm=ischampsa=1ampq=under+armourampoq=under+armourampgs_l=img30l1050205020052581100001721720j110epsugrpqhmsignedin2Chmss23Dfalse001120imgG9TAsKmFMwYampbav=on2orr_cpr_qfampbvm=bv497844692CdcGE2Cpvxjssen_USMpiVkF51mpAOampfp=53a021071fbac8c0ampbiw=1600ampbih=785ampfacrc=_ampimgdii=_ampimgrc=XAvkMVe315c5GM3A3B6tQcFFDl_6JYhM3Bhttp253A252F252Friestypepadcom252Fa252F6a00d8345194a469e20120a6a92f38970c-800wi3Bhttp253A252F252Friestypepadcom252Fries_blog252F2009252F11252Funder-armour-too-big-for-its-shirthtml3B4643B297

httpswwwgooglecomsearchsugexp=epsugrpqhmsignedinhmss23Dfalseampgs_rn=20ampgs_ri=psy-abamptok=N0RlCzu8b00JqXhP5UH4cQampcp=8ampgs_id=uampxhr=tampq=under+armour+swot+analysis+2013ampbav=on2orr_cpr_qfampbvm=bv49784469deWUampbiw=1600ampbih=785ampum=1ampie=UTF-8amphl=enamptbm=ischampsource=ogampsa=Namptab=wiampei=HbjyUZmOH4eG9QTf3oG4CAum=1amphl=enamptbm=ischampsa=1ampq=under+armour+kevin+plankampoq=under+armour2C+kevampgs_l=img100l2j0i24l523567623664922386715500001104763j250epsugrpqhmsignedin2Chmss23Dfalse001120img4lh2-31Bmqgampbav=on2orr_cpr_qfampbvm=bv497844692CdcGE2Cpvxjssen_USMpiVkF51mpAOampfp=91651ac04e89c653ampbiw=1600ampbih=785ampfacrc=_ampimgdii=_ampimgrc=VyerLhckSuWgyM3A3BjQSUYqoeAh6wZM3Bhttp253A252F252Fwwwdardenvirginiaedu252Fweb252FuploadedImages252FDarden252FMedia252FDarden_News_Articles252F2010252FKevin-Plank-UnderArmour_MG_7685jpg3Bhttp253A252F252Fwwwdardenvirginiaedu252Fweb252FMedia252FDarden-News-Articles252F2010252FKevin-Plank-CEO-and-Chairman-of-Under-Armour-Inc-Chronicles-His-Rise-to-the-Top252F3B2503B250

httpwwwdvicecom2013-2-13under-armour-shows-interactive-running-suit-future

httpwwwunderarmourcomshopusenua-baselayeralter-egomens

httpswwwgooglecomsearchq=nike+vs+under+armourampsource=lnmsamptbm=ischampsa=Xampei=0HP0UZ-uBpLO8wTVloGQDwampsqi=2ampved=0CAcQ_AUoAQampbiw=1600ampbih=785facrc=_ampimgdii=_ampimgrc=kvSpG6CuB1CdEM3A3Buh0sJUlkMDDubM3Bhttp253A252F252Favm5062fileswordpresscom252F2013252F05252Fuavnikejpg3Bhttp253A252F252Fsportsunlimitedblogcom252F2013252F05252F24252Funder-armour-heatgear-vs-nike-dri-fit-the-sports-apparel-war252F3B25943B1384