timbre 6: Strategic Challenges
Major problems:
1)Protecting product differentiation
Because of the situation that Under Armour does not have a obvious on any of the materials used in its products, if they are not careful there know how can be stolen and opposite companies can implement their admit versions of their products.
2)To concentrated on mavin merchandise (Economic Downfall)
The current economy in their major grocery the unite States is on a slippery slope and this is unsafe because 93 percent of their gross revenue is based in the United States with only 7 percent being international sales. place all their eggs in one basket could conduct them to reliant on one market and stuck with no think b.
3)Major Competitors and upcoming competitors
Other companies have the capital power grown them the ability to imitate Under Armours product versions. Also the gymnastic apparel industry has small barriers to entry, so at anytime, honourable like Under Armour, did another company could explode onto the scene.
squirt Problems:
1)Male Dominant Focus
Under Armour mens apparel make up the lions share of sales, representing 68 percent of apparel sales and women sales only accounted for 23 percent.
2) Seasonality
There appears to be a trend that sales are higher in the third base and fourth quarters of each year, alligning with the football and basketball seasons.
Step 7: Action Plan for solving
Major problems:
1)Protecting product differentiation
As the book states, It needs to be cautious in its licensing agreements so that companies do not steal its know how and introduce their own versions. On top of this Under Armour can not stand still, they must keep being innovative on a continual basis. Examples are, Creating new specialized products to meet client needs, upgrading their services, and having excellent total quality management programs, all these things leave keep them ahead of the competition.
2)To concentrated on one market (Economic Downfall)
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