Under Armour
IBM 4711 International Strategic Management
Under Armour: Working to Stay on Top of Its Game
Perform a STEEP analysis to understand the general environment facing Under Armour. How will the firm be affected by external factors?
Ans. Each factor under STEEP analysis giving Under Armour more information about how company should adapt itself, in order to be survived in the market. Let’s see the effects of these external factors to the company’s strategies each by each.
Social factor
Demographics
Gender : affects the designs for both male and female customers (e.g. apparel for women)
Age Structure : affects design, sizes, and features for different age distribution(e.g. youth)
Lifestyles
Types of sports : affects designs of products for different types of sports and different level of players
Climates : affects different performance features of products, for example, shoes and apparels
Economical factor
Technological factor
Degree of economic risk associated with premium price (Downturn economy), affect in declining net sales and encouraging the company to use conservative approach
Rapid change and innovation of technology, affects company by continuous improving product innovation, procurement and production process
Political & Legal factor
Intellectual property rights law and regulation of the countries in global market very vary, affecting the company to consider their unprotected intellectual property issue.
Use Porter’s Five Forces Model to analyze the apparel, footwear, and equipment industry in the US. Given this analysis, is the industry attractive or unattractive?
Ans. First, The threat of the entry of new competitors (High) due to • Total U.S. performance apparel business is dominated by existing brand ex. Under Armour, Nike and Adidas. The loyalty for existing brand is quite high while there’s high initial investment required as well. For The bargaining power of suppliers (High) as company heavily rely on
Under Armour: Working to Stay on Top of Its Game
Perform a STEEP analysis to understand the general environment facing Under Armour. How will the firm be affected by external factors?
Ans. Each factor under STEEP analysis giving Under Armour more information about how company should adapt itself, in order to be survived in the market. Let’s see the effects of these external factors to the company’s strategies each by each.
Social factor
Demographics
Gender : affects the designs for both male and female customers (e.g. apparel for women)
Age Structure : affects design, sizes, and features for different age distribution(e.g. youth)
Lifestyles
Types of sports : affects designs of products for different types of sports and different level of players
Climates : affects different performance features of products, for example, shoes and apparels
Economical factor
Technological factor
Degree of economic risk associated with premium price (Downturn economy), affect in declining net sales and encouraging the company to use conservative approach
Rapid change and innovation of technology, affects company by continuous improving product innovation, procurement and production process
Political & Legal factor
Intellectual property rights law and regulation of the countries in global market very vary, affecting the company to consider their unprotected intellectual property issue.
Use Porter’s Five Forces Model to analyze the apparel, footwear, and equipment industry in the US. Given this analysis, is the industry attractive or unattractive?
Ans. First, The threat of the entry of new competitors (High) due to • Total U.S. performance apparel business is dominated by existing brand ex. Under Armour, Nike and Adidas. The loyalty for existing brand is quite high while there’s high initial investment required as well. For The bargaining power of suppliers (High) as company heavily rely on