Question

Prepare a brief report to Under Armour CEO Kevin Plank outlining the 3-4 top priority issues that Under Armour management needs to address and the actions you think Kevin Plank should initiate to address these issues and steer Under Armour into an even stronger position to challenge Nike’s leadership position. Your report should contain detailed and convincing reasons in support of each one of your analysis and/or recommendations. It is imperative that the support offered for each of your analysis/recommendations be based on (a) conclusions drawn from application of the concepts and analytical tools discussed in Chapters 3 and 4 and (b) the content of Chapters 5-7 regarding strategic moves that may be suitable for Under Armour in building a stronger competitive position vis-à-vis Nike and The adidas Group.

Question 1
How strong are the competitive forces confronting Under Armour, Nike, and The adidas Group? Do a five-forces analysis to support your answer. (Requirement: 4+ paragraphs minimum)

Question 2
Does Under Armour have any core competencies and, if so, what are they? Include detail on why you believe these are core competencies. (Requirement: 4+ paragraphs minimum)

Question 3
Does Under Armour have any resource strengths or competitive capabilities that qualify as a distinctive competence? Include detail in your answer (Requirement: 3+ paragraphs minimum).

Question 4
What does a SWOT analysis reveal about the overall attractiveness of Under Armour’s situation (Requirement: Conduct a SWOT analysis - 4+ paragraphs minimum)?

Question 5
What are the key elements of Under Armour’s strategy (Requirement: 3+ paragraphs minimum)?

Question 6
Identify 3 - 4 top priority issues Kevin Plank and Under Armour management need to address.

What recommendations would you make to Under Armour CEO Kevin Plank? At a minimum, your recommendations should cover what to do about each of the top priority issues identified (Requirement: 4+ paragraphs minimum).

Solution Preview

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The 5 forces analysis asseses the industry attractiveness and (Gamble, J., & Thompson, A., 2015, p.42) for Under Armour is the following:

Bargaining power of Suppliers:
Under Armour has various suppliers from Latin America and SE Asia, and 5 suppliers account for their 55% of fabrics. They have 27 manufacturers in 14 countries and more than half of their products are produced in Asia.
Nike has manufacturers in China, Vietnam and Indonesia that produce 98% of their footwear, while the rest of their apparel is manufactured in 28 different countries....

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