Value Chain Analysis of Under Armour

Under Armour is a sportswear and apparel manufacturing American multinational company. Kevin Plank founded the sportswear brand business in 1996. Today, we’ll discuss the value chain analysis of Under Armour supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers of Under Armour

• RSB Industrial
• Karnaphuli Sportswear
• Rocotex SRL
• Tecnotextile Confeccoes
• Ranee Industria E Comercio
• Starlight Apparel Manufacturing Cambodia
• Dongguan City Maite Sports
• Regina Miracle Intimate Apparel
• Shantou Yong May Garment

The Value chain analysis of Under Armour supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Under Armour value chain analysis company example as follows;

Value Chain Analysis of Under Armour

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Under Armour supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Under Armour

The primary activities are directly involved in the production of products and goods and adding value to the sportswear company. Some of the five main primary activities in the value chain analysis of Under Armour supply chain analysis are as follows;

Inbound Logistics of Under Armour

I-Responsible Sourcing

Under Armour is highly careful and cautious about ethical and responsible sourcing of raw materials and supplies. The sportswear brand conducts sustainability training programs for suppliers and vendors to spread awareness about environmental responsibility and sustainability.

II-Suppliers Code of Conduct

Under Armour has set a strict code of conduct for suppliers, vendors, and outsourcing manufacturing partners. The objective is to ensure their compliance with the ethical and sustainable practices and regulatory requirements; it deals with the following areas;

• Sustainable business practices
• Misconduct reporting
• No harassment and abuse
• Nondiscrimination
• Standard working hours and wages
• Freedom of association of any union

Outbound Logistics of Under Armour

Under Armour partners up and collaborates with various 3rdparty logistics service providers like OnTrac, DHL, USPS, UPS, and FedEx. They move raw supplies and materials from the suppliers and vendors to the production and manufacturing factories; warehouses and distribution centers, and then to the retail chain stores of the company.

Operations of Under Armour

I-Manufacturing Partners

Under Armour has approximately 50 manufacturing partners in 18 countries across the world. According to an estimate, approximately 65% of the manufactured sportswear products come from 14 countries like Honduras, El Salvador, Indonesia, Cambodia, Nicaragua, Philippines, and Jordan. They receive raw supplies and materials from the authorized and verified suppliers of the company to ensure their compliance with ethical and responsible supply chain practices.

II-Distribution Centers & Warehouses

Under Armour has approximately 3 distribution centers and warehouses strategically located in different regions and countries across the world. They receive finished sportswear goods from the production and manufacturing factories; temporarily store, package, and label the stock, and then deliver it to various retail chain stores and the end consumers.

Marketing & Sales of Under Armour

I-Marketing & Advertisement

Under Armour runs various types of marketing and advertisement campaigns for the promotion of its products, goods, and brand. Along with marketing and advertisement campaigns, Under Armour also sponsors mega sporting events like the US Open Golf Championship and Hollywood movies. It allows the company to spread brand awareness and target various segments of the customer market.

II-Retail Chain Stores

Under Armour has a very large network of retail chain stores in various countries across the globe. The worldwide network of retail chain sportswear stores would help the company approach various segments of the customer market and amplify its sales.

Services of Under Armour

Under Armour offers a wide range of sportswear products and services to customers. The additional service portfolio helps the company to increase its sales and promote brand loyalty; some of them are as follows;

• Mobile application
• Online shopping
• Home delivery service
• Better user experience
• Easy payment methods

Supporting Activities of Under Armour

Supporting activities are indirectly involved in the production of products and goods and adding value to the sportswear company. Some of the main supporting activities in the value chain analysis of Under Armour supply chain analysis are as follows;

Infrastructure of Under Armour

Under Armour has a very large infrastructure of production and manufacturing factories, suppliers and distributor networks, warehouses and distribution centers, and retail chain stores. The worldwide network of retail chains and having a large infrastructure would help the company to smoothly perform its various operations and timely deliver the finished goods to the end consumers.

HRM of Under Armour

Under Armour has employed approximately 18000 employees to manage its global operations. The human resource management department of the company plays a key role in building a large database of employees, carefully recruiting and selecting various employees, collaborating with suppliers, and conducting training programs. It allows the sportswear brand to smoothly perform its various operations without any disruption.

Technological Development of Under Armour

Under Armour invests a significant amount of capital resources in research and technological development. It allows the company to develop unique designs, find efficient methods of production, source new material, and implement automation technology to achieve efficiency and reduce the overall cost.

Procurement of Under Armour

Under Armour is highly careful and cautious about ethical sourcing and procurement of raw materials and finished goods from suppliers and manufacturing partners. It allows the company to ensure its compliance with human rights standards and ethical practices.

Conclusion: Under Armour Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Under Armour; we have realized that Under Armour is the world’s leading retail chain sportswear brand. If you are learning about the Under Armour value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.