Under Armour SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities and Threats, and is an important tool often used to highlight where a business or organization is, and where it could be in the future. It looks at internal factors, the strengths and weaknesses of a business, and external factors, the opportunities and threats facing the business. The process can give you on overview of where the business, and the environment it operates in, is strategically. This is an important, yet to simple to understand, tool used by many students, businesses and organizations for analysis.

The following SWOT analysis looks at under armour which is operating in clothing industry. The analysis shows under armour’s Strengths, Weaknesses, Opportunities and Threats. The SWOT analysis will give you a clear picture of the business environment under armour is operating in at the present time.


The strengths of a business or organization are positive elements, something they do well and is under their control. The strengths of a company or group and value to it, and can be what gives it the edge in some areas over the competitors. The following section will outline main strengths of under armour
• Being financially strong helps under armour deal with any problems, ride any dip in profits and out perform their rivals.

• A strong brand is an essential strength of under armour as it is recognized and respected.

• Under armour’s distribution chain can be listed as one of their strengths and links to success.

• High net income in year 2009

• Offering wide range of casual apparel and sports wear

• High profit to earnings ratio

• Positive response from customers

• Official outfitter of schools and universities teams


Weaknesses of a company or organization are things that need to be improved or perform better, which are under their control. Weaknesses are also things that place you behind competitors, or stop you being able to meet objectives. This section will present main weaknesses of under armour
• Not reducing costs in the same way as their competitors’ means under armour is outlaying more of their profits. Having higher costs than competitors is a major weakness.

• Not having an effective marketing strategy seriously hampers the success of under armour.

• Online presence is vital for success these days, and lack of one is a limitation for under armour.

• Under armour’s limited product line is a major weakness.

• Narrow focus

• It is considered as male targeted brand


Opportunities are external changes, trends or needs that could enhance the business or organization’s strategic position, or which could be of a benefit to them. This section will outline opportunities that under armour is currently facing.

• Looking at export opportunities is a way for under armour to raise profits.

• The changes in the way consumers spend and what they buy provides a big opportunity for under armour to explore.

• New market opportunities could be a way to push under armour forward.

• Expanding the product/service lines by under armour could help them raise sales and increase their product portfolio.

• Expanding into other markets could be a possibility for under armour.

• Forming strategic alliances and joint ventures is an opportunity for under armour to maximize profit and gain new business.

• Reduce prices of the products

• Increase number of retail outlets


Threats are factors which may restrict, damage or put areas of the business or organization at risk. They are factors which are outside of the company’s control. Being aware of the threats and being able to prepare for them makes this section valuable when considering contingency plans and strategies. This section will outline main threats under armour is currently facing.

• Tax increases placing additional financial burdens on under armour could be a threat.

• The financial burden of increasing interest rates could be a threat to under armour.

• Changes in the way consumers shop and spend and other changing consumer patterns could be a threat to under armour’s performance.

• The actions of a competitor could be a major threat against under armour, for instance, if they bring in new technology or increase their workforce to meet demand.

• Substitute products available on he market present a major threat to under armour.

• Hard competition from companies such as Nike and adidas.

• Recession may impact the sale of company

• Low price importers can fetch market share

• Male dominated focus

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