Академический Документы
Профессиональный Документы
Культура Документы
issues with reference to global strategy, distribution problems, and promotion or advertising.
Accordingly, the UA should consider starting with the global strategy because of the potentiality
of the approach to expand the revenues of the company in foreign countries. In addition, the UA
should consider investing more while concentrating on the footwear to gain a competitive
position against Nike and Adidas within the competitive industry. These attributes and strategies
will be essential in facilitating the effective handling of the demands of the customers.
Recommendations
Based on the issues such as global strategy, promotion, and distribution channels, I would
propose a more rapid marketing strategy. This is through engaging in exploitation of the social
media marketing with the intention of increasing the volume of revenues as well as the number
of consumers in the niche of interest. The approach should also consider the organization and
execution of contests with the purpose of enhancing the image and reputation of the business
entity among the consumers. The level of awareness among the consumers will enable the
organization to enhance its global coverage while incorporating rapid distribution channels. The
organization should consider expansion of the revenues and global operations to achieve
economies of scale and facilitate pursuit of cost leadership. These proposals will enable the
company to improve its image and profitability in the domestic and global contexts while
reducing the cost of providing quality products and services to the customers.
Two Exhibits
Table 1. Porters Five Force
Porters Five Force
Competitive Rivalry
Bargaining Power of Suppliers
Threat of Substitute Products
Threat of New Entrants
Bargaining Power of Buyers
Intensity
Medium to High
Low to Medium
Low
Medium
Medium
Financial analysis
The financial analysis comprises of determination of the revenue growth rates and trends,
profitability levels and trends, and an assessment of the firms overall financial position based
upon the firms 2009-2011 Financials. The formula used to calculate the revenue growth rate is:
; Where V1= the Revenue for year 1 and V2= revenue for the following year. The following table
gives the growth rates.
Table 2 Revenue Growth Rate
Years
2011-2010 2010-2009
Revenue growth rate 38.42% 24.23%
SWOT Analysis
Strengths Attractive logo
Expensive products
The Under Armour business entity is vital in the generation of core competitiveness in the
market through innovation. The organization focuses on the integration of the innovation and
creativity in designing quality products and services to the customers while reducing the cost of
operations. Innovation is vital in the generation of quality, as well as differentiated products in
the market and industry of transaction to eliminate or minimize the extent of competition from
other operators such as Nike and Adidas. In addition, innovative enables the company to
generate competitive products in accordance with the preferences of the customers while
improving the image and reputation in the local and global contexts. From this perspective, this
strength is ideal in the improvement of the loyalty among the customers, thus achievement of
competitive advantage.