Under Armour Inc Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

Under Armour Inc. is a United States based firm, which has been offering sports clothing and accessories. Under Armour has also been a supplier for casual wear and sportswear. The company even started off its shoe wear in the year 2006. The company headquarters are located in Baltimore, Maryland. The European headquarters for the firm is in Amsterdam.

The company started off its operations in the year 1996. Kevin Plank is the CEO and the founder of Under Armour Inc. He was only 23 when he started off with his business to enter sportswear industry. The total number of employees for Under Armour as per the research conducted in 2013, it has approximately 7,800 employees worldwide (Wagner, 2013).

The break through moment for the company came in the year 1999, when Warner Bros. contacted Under Armour to actually design the outfit for its two upcoming films. In 2000, the company became the outfitter for a new football league, which made the company gain more market share and customer actually preferred using the products made under the brand.

The company in the year 2003 launched its first television commercial where the commercial was centered on the motto of the company “Protect this House”. The distribution strategy of the company has been to stay as a selective distribution company. The company uses hybrid channel to distribute its products (Wagner, 2013).

The country that has been chosen to enter the brand Under Armor is China. The reason for selecting this country is because of the high potential in the market. By entering into Chinese market, Under Armour would be able to distribute its products to other parts of Asian market also.

Moreover, since the Chinese market is known for producing at a lesser cost, the labor is rather cheap, raw material cost less than that of the United States, therefore, entering in China will be a feasible option for the company. The mode of enter in China would be the same as it has been in the past, licensing can be the feasible option to enter China.

Macro Environment

The macro environment situation of China is quite feasible for any company entering the country. The government has been quite supportive in this regard, where it looks to favor the industrial development of foreign companies and brands. Moreover, many of the United States firms have actually set up their regional offices in this part of the world because of the increasing opportunities that are available to the companies (Gomez-Mejia, 2008).

The economic, financial, political situation of the country is rather stable and offer support in all aspects. Specifically talking about the apparel industry, China has been a hub in this regard. Most of the foreign brands do exist in the market. Adidas, Nike, Puma, etc. all have been working in Chinese market, either through direct presence or sometimes they offer third party manufacturers to manufacturer for these brands (Kevin, 2008).

This suggests that the market opportunity does exist for any brand that looks to explore the market. Therefore, it is rather advisable to the management of Under Armour to enter Chinese market by offering its products to the specific market.

Political/legal environment

The political situation of China has been quite positive for the economic development in the country. Moreover, specifically talking about the apparel industry, the Chinese government has been quite keen to promote this industry while providing growth opportunities and also offering profit making potential. The state economic and trade commission, in collaboration with the Ministry of Import, launched a five-year national program to restructure China’s apparel industry.

Along with this, the government has had a great control over the production facilities in the country and the government has also been keeping a check and balance on all the production that take place. Under Armour can benefit from the fact that, the country has been keen to promote more foreign companies to come over and set up business in this part of the world. The legal framework for the imports has been in the early stage for the country. China has rather limited experience in drafting business legislation. The legal rules and regulations have been quite favorable for the new entrants in the market (Kotler, 2009).....................

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