FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS.) FINANCE

JBA2425C

MGT657
STRATEGIC MANAGEMENT
SEMESTER OCT 2021 – FEB 2022

INDIVIDUAL ASSIGNMENT TWO (2) – 10%

CASE STUDY UNDER ARMOUR

PREPARED BY:
SAIF AL HANIF BIN SURYONO (2020791857)

PREPARED FOR:
DR. AMIR IMRAN BIN ZAINODDIN

SUBMISSION:
3RD JANUARY 2022
1. Started at the age of 23, the Under Armour (UA) founder, Kevin Plank make a huge success
in making the brand become one of the top and popular brands nowadays. Starting from making
t-shirts, UA had expanded drastically which involved in designing, developing, marketing, and
distributing various type and kind of footwear, apparel, and accessories. These products target
market is huge which include men, women, and also children. This operation had become
available globally and mostly specialized in sporting goods such like football, golf, baseball,
team uniforms, and shoes. The UA start being exposed to the public when Plank involve in
providing t-shirt to the players in National Football League (NFL) which results in $100,00
orders in 1997. Now, the company have grown big enough and becoming the brand that most
sought after amidst the athletes globally.

2. SWOT

• For the organization’s strengths, the UA company manage to find a way into making
the products wear by high-performing athletes especially the big ones who have great
influence in the NFL, NBA, MLB, and even high school teams in sports. UA creatively
find a way to make the brand recognize to the right audiences when using this method
since people who involved in sports or into sports will saw the attires wear by their
favorite athletes and making the target customer to know and buy the UA goods.
Moreover, the UA have a high advertising and marketing strategy which the company
aggressively uses broadcast channel, print method, and also the most common and
effective method is by influencing and promoting the brand on social media. Nowadays,
marketing and advertising strategy is like a weapon for a company to boost up their
sales and awareness of the product to the public. UA also able to acquire 25,000 crucial
retail stores around the world.
• For the organization’s weaknesses, the UA company seems to have trouble in fabric
and patents. This means that the company does not have security on the trademark or
copyright to protect the goods or products produce. Competitors might easily copied
UA products and make one of their own. Not to mention the company is only selling
the produced good without patent the products and make the company have the sole
right to make the specified items. This will affect the sales of the company since the
 specialty about the UA product can easily be found in other brands. Furthermore, UA
company expense more of their revenues on Selling, general and administrative
expenses after cost of goods sold. Although the UA company financial performance is
increasing year by year from 2010 until 2012, the expenses occurred in statement of
income is drastically increasing to which make the company unable to generate or
maximize their profits. From $1,834,921 thousands in revenue, the company only
manage to acquire a net profit of $128,778 thousands in 2012 which is quite a huge gap.
• For the organization’s opportunities, UA company is very promising in expanding
drastically in the future when the company is using the marketing and promoting
technique that shows the UA attires being wear in worldwide sport league such as the
NFL, NBA, and MLB. These sport leagues have a significant potential in making the
UA brand recognizable and become the main attraction when it comes to sporting
goods. In addition, the UA company can make discoveries on new attire technology by
making the research and development. The UA company is deciding whether to
expense more on the research and development, which when their research and
development found new technology or making the goods or products more durable and
quality, the findings can be the anchor for the company to pursue further and increase
their company performance. UA company is the first company that able to make
compression t-shirt that does not absorb sweat. This can inspire the company to make
new findings and push the company forward by being the first to acquire unique or
special findings in the products.
• For the organization’s Threats, the UA company have very competitive rivals in the
same industries. The rivals from Nike and Adidas are enough to challenge the UA
position in the sportswear. Both Nike and Adidas company already have stable and
ongoing contract with renown entities. This might make the UA company limited to
pursue and expand their company and brand influence since the company is unable to
compete the competitors in adapting towards the new and latest technology used.
Moreover, the UA company might face the loyalty and lack of awareness issue. This is
because the company does not have patented fabric which might make the customers
feel that they just can buy it for the same technology used at different competitors. This
will also lessen the awareness of the product which the UA company might be less
 recognize by the public since there are no trademarks or things that can the differentiate
the UA company between the other rivals.

3. A good and decent mission statement should include nine component which are the Customers,
Products or service, Markets, Technology, Concern for survival, growth, and profitability,
Philosophy, Self-concept, Concern for public image, and Concern for employees. Based on
my idea, the best and suitable proposed mission statement can be made for UA company is
“An entity excellence in various attires and wears that provide longevity and quality with
aspiration to serves more and greater among the best by sourcing newer and advanced
specialties in comfortable and reliable attires that people can rely and believe”. This new
mission statement shows in a simple and pack information towards the public on how the
company is planning to do every year and their goals not only to advance in performance but
to also concerns about the brand image and uniqueness wear by the consumers that they can
trust for a long time.

4. CPM
Critical success factor weight UA Company Nike Company Adidas
Company
Rating Score Rating Score Rating Score
1.Advertising 0.20 4 0.80 4 0.80 4 0.80
2.Product Quality 0.15 2 0.30 3 0.45 4 0.60
3.Price Competitiveness 0.05 2 0.10 3 0.15 3 0.15
4. Management 0.05 2 0.10 3 0.15 2 0.10
5. After Sale Service 0.05 1 0.05 2 0.10 2 0.10
6. Financial Position 0.10 3 0.30 4 0.40 3 0.30
7. Customer Loyalty 0.15 3 0.45 4 0.60 3 0.45
8. Global Expansion 0.10 3 0.30 3 0.30 4 0.40
9. Market Share 0.05 2 0.10 3 0.15 3 0.15
10.Sports League 0.10 3 0.30 4 0.40 3 0.30
Total weighted Score 1.00 2.80 3.50 3.35
 The ratings values are as follows:
• 1 = Major weakness
• 2 = Minor weakness
• 3 = Minor strength
• 4 = Major strength

5. In my opinion, the UA Company should involve various more influencers to promote the brand
further and more aggressive. The UA company can utilize to promote the brand globally by
making not only the athletes and sports league involvement, but the company can also include
more potential people to maximize the advertising power which is by using actors and actress,
body builders, and social media influencers. By doing so, UA company can expose more
awareness of their brand products and make the company well known and hype up from the
various form of promoting strategy. Moreover, the UA company should make patent or
copyright on the fabrics. This is mainly to protect the company special products that
differentiate it from other competitors. By doing this also, the company can prevent their
produced item from being copied or imitated from other competitors. This will make the
company builds its brand loyalty since the consumer knows what the specialty of buying and
using the UA products. In addition, the company can expand their store’s location in rural areas
since most rural areas around the world are more actively involved in outdoor activities such
like sports, hiking activities, extreme outdoor work and so on. By doing so, UA company can
become the sole company to provide various type of sporting, underwear, boots and shoes
attire to the rural location. This might potentially increase the sales of the company and make
the brand well-known among people.