please critique the bellow report.

Step 1 - Identification After carefully examining and analyzing the "Under Armour's Strategy in 2020: Can It Revive Sales and Profitability in Its Core North American Market?" case, we've written a paper outlining Under Armour Inc.'s strategic management challenges, outlining the conceptual difficulties and offering a range of different approaches for addressing them. We've also included some pertinent recommendations and a follow-up action plan. Several significant strategic management problems have had an impact on the performance and competitive positioning of Under Armour Inc. The company experienced operational problems with inventory management due to being overstocked and was unable to predict demand. With regard to clearance pricing, the company's profit margins were adversely affected by its rising storage costs and depreciation of goods. The organization's dependence on several global suppliers posed difficulties for its supply chain, resulting in interruptions and postponements that impacted the promptness of fulfilling customer demands. Additionally, Under Armour Inc. contracted out manufacturing to a number of manufacturers worldwide, which led to problems with quality control. Under Armour failed to adapt to the evolving product preferences of its customers. It continued to focus on sportswear with an emphasis on performance, despite customer demand evolving to a more stylish and adaptable clothing preference. Under Armour was under tremendous pressure from more established companies like Adidas and Nike. Under Armour's brand impression and positioning were negatively impacted by the implementation of aggressive discount strategies. The company's reputation suffered as a result of steep discounts. It was considered as a substandard brand rather than one that was high-end. The capacity to maintain an established and distinctive market position was weakened as a result. Financial concerns include the effects of substantial price reductions that minimize excess inventory and increase demand, which strain profitability. Due to Under Armour Inc.'s declining profit margins, the value of the company's shares on the stock exchange also dropped precipitously, which negatively affected investor confidence and market sentiment. In the end, the stock price drop calls into question the trust and goodwill around the company's future success. The COVID-19 epidemic made matters worse, by causing economic disruptions and lowering consumer purchasing power, which had a detrimental effect on Under Armour's sales and, consequently, profitability. 3 Step 2 - Analysis A critical analysis of Under Armour's obstacles and their relationship to established business ideas and theories is necessary to analyze the conceptual and theoretical issues in the company's instance. The following are a few major difficulties and the theoretical concerns they raise: 1. Profitability Issues: Under Armour had faced declining profitability and had reported a net loss in 2019. Theoretical Issue: This problem relates to fundamental financial theories that emphasize the importance of achieving and sustaining profitability. Concepts like cost leadership and value creation are undermined when a company experiences consistent losses. 2. High Debt Levels: Over time, Under Armour's long-term debt levels have risen, which may cause some people to question the company's financial viability. Theoretical Issue: According to capital structure theory, high debt levels might be problematic. The business can be operating against the most effective financing guidelines, which advocate balancing debt and equity funding to increase firm value. 3. Inventory Management: Inventory management problems at Under Armour might lead to higher carrying costs and obsolescence. Theoretical Issue: Problems with inventory management are a reflection of difficulties in properly implementing the carrying cost and inventory turnover theories. Effective inventory management is crucial for cost reduction and increased working capital effectiveness. 4. Market Saturation and Competition: There are several big participants in the fiercely competitive sportswear market, including Adidas and Nike. Theoretical Issue: Theories about competitive advantage and market positioning are challenged by the competitive environment and market saturation. Under Armour could find it difficult to stand out from the competition and get market share. 5. E-commerce Growth: The growth of e-commerce and continuous change in consumer buying trends, this poses several challenges for Under Armour's traditional retail model. 4 Theoretical Issue: This issue is related to ideas about how digital disruption affects businesses and how they must change to meet the needs of evolving customers. Ideas like customer experience and omnichannel tactics become essential. 6. Brand Perception: Maintaining a strong brand image and addressing consumer concerns are essential for Under Armour. Theoretical Issue: This problem aligns with brand management theories. It's vital to consider how brand equity and consumer perception impact the company's market positioning and sales. 7. Global Expansion: It might be difficult to expand internationally while adjusting to various customer preferences, legal requirements, and cultural norms. Theoretical Issue: Theoretical frameworks pertaining to international business and market entrance strategies are relevant to concerns of international expansion. Businesses must modify their tactics to fit different markets. 8. Operational Ef iciency: Inefficiencies in supply chain and manufacturing processes can result in longer lead times and increased costs. Theoretical Issue: Concepts like supply chain management theories and lean manufacturing, which seek to improve operations and cut costs, are challenged by operational efficiency issues. 9. Leveraging Data and Technology: Under Armour needs to harness data and digital technology effectively for personalized marketing and customer engagement. Theoretical Issue: The utilization of data and technology links with concepts from digital marketing and customer relationship management theories. Companies must adapt to the digital age to remain competitive. Porter's Five Forces Threat of new entrants - Low There are currently plenty of major participants in this sector, therefore there has been fewer competition from potential new competitors. With so many alternatives available, it is difficult for an upcoming 5 competitor to break into the market and make an impression. Setting up connections with vendors and supply chains would require a significant investment of both time and resources. Under Armour makes significant investments in R&D, which allows them to innovate and release new items fast. This makes it challenging for rivals to produce goods that match Under Armour's technology and innovations. Competition from Current Rivals - High There are three major players in the athletic apparel market out of the numerous businesses in this industry. The three biggest are Under Armour, Adidas, and Nike. These businesses must invest in R&D to develop unique goods and marketing if they want to stand separate from one another. Under Armour engages in marketing initiatives, advertising, and high-profile athlete sponsorships in order to raise customer involvement and brand recognition. Threat of substitutes - High Other than the labels mentioned, several firms produce similar sportswear. Ultimately, the majority of businesses create comparable goods with similar purposes. Businesses depend on the development of new technologies to provide a better product for their customers in order to stay competitive. But with all these technical developments, it's quite easy for firms to manufacture goods using the same technology from these bigger corporations without the label, which poses a serious challenge to the brand-name companies. Bairgaining Power of Supplier - Moderate Initial supplies are needed, some of which are specialized due to the wide range of products. All of Under Armour's production and textiles are outsourced to various countries. They both have flexibility as none of them has long-term relationships with suppliers. Conversely, sportswear companies have less negotiating power with customers because of the oversaturation of the sector. Companies need to be clever in their pricing and branding efforts since consumers have several alternatives. Bargaining power of Customer - Moderate/High As was previously noted, buyers have a wide selection of sportswear to select from, which gives them significant negotiating leverage with suppliers. Their influence, meanwhile, wanes in some situations when some businesses fail to deliver the quality, sustainability, or technology that consumers want. 6 SWOT Analysis Strengths Weaknesses Wide variety of goods sold High-Profile Sponsorships Strong marketing strategies and tactics Strong global presence North American market difficulties Inventory/Stock management Stock price depreciation Continuous decrease in profitability index Pricing strategy - frequent discounting Brand image inconsistencies Opportunities Threats Advancements and improvements in E-commerce features Lifestye/Athleisure product expansions Innovation in product design Further international presence Improve North American market Losing relevance in saturated and innovative market Rivals offering same/similar product & technology Covid 19 affects on the economic and consumer's purchasing habits Step 3 - Alternatives In 2020, the well-known manufacturer of athletic wear and accessories, encountered several difficulties in its primary North American market. The store saw a decline in market share due to shifting consumer preferences, which had a significant impact on the company's expansion. In order to boost sales and profitability in a key market, Under Armour must concentrate on developing solutions for those competitors and assessing those solutions. Innovation Under Armour can, first and foremost, innovate products that cater to the wants and demands of its customers. The product range will be more diverse and accommodate more sports, activities, sizes, and styles by including eye-catching designs and enticing product lines. Paying close attention to the product's latest technical advancements as well. Adopting and promoting eco-friendly solutions can assist in 7 keeping up with the changes in modern society. Under Armour might employ market research by tracking and examining customer comments in order to assess the solution. Brand Loyalty Fostering customer brand loyalty is the second. Influencers, social media, and athletics may all be used to accomplish this. Solid alliances with those who can promote the brand will enable the business to reach a larger market. To increase the company's reach, they can also work with fitness events, sports teams, and gyms. Market research is a useful tool for Under Armour to uncover customer bias in their goods. The company may be able to keep its current clientele by implementing a loyalty program. Global Expansion Subsequently by joining the global market, Under Amour may increase the geographic demand inside North America. Several product portfolios can be introduced to meet a variety of consumer demands in order to achieve this. Gaining worldwide expansion facilitates taking use of outside markets, increasing variety, and customizing services. When assessing a solution, the business may determine how much time and money it will take to execute each one as well as gather information on its viability. Cost Optimization On the contrary, businesses may concentrate on optimizing the cost of manufacturing. This may be achieved by deploying cost-effective production solutions and lowering supply chain costs. Simultaneously, concentrate on vendors that can deliver the goods at a fair cost without sacrificing quality. Under Armour might use KPIs to analyze which approach is most effective for the company's operations in order to evaluate the solution. Continuously prepared to embrace new ideas and be ready to modify existing ones in light of shifting market conditions. Step 4 - Recommendations & Action Plan 1. Debt Restructuring: Talk about advantageous circumstances for debt, including lower interest rates and extended payment times, with creditors and account holders. This will lessen the financial load immediately. Prioritize debt from highest to most favourable as well, and concentrate on paying off the most detrimental debt first. 2. Asset Optimization: 8 Complete an audit of the company's resources, sell off assets that are not necessary and reduce other expenses, in order to begin to reduce debt and improve operational efficiencies. 3. Cost Ef iciency: To start decreasing costs, lower overhead and boost operational effectiveness. This might entail combining facilities, establishing new contracts with suppliers, and eliminating any unnecessary expenses that are no longer needed. 4. Product Innovation: Offer product differentiation and increased innovation to distinguish the company from competitors such as Nike and Adidas. Partnering with technology firms towards smart athleisure attire, prioritize eco-friendly fabrics and design exclusive collection lines as a mechanism of enhancing brand awareness, visibility, and profit margins. 5. Marketing and E-commerce: Increase digital marketing programs to expand the scope of the company. Better the online shopping experience for users through the development of their e-commerce sites, in order continue to growing sales in the foreseeable future. 6. Customer Engagement: Increase customer engagement via curated experiences and customized loyalty programs. This is a critical time for cementing a strong customer base. For example, Adidas has been able to offer loyalty rewards to their buyers, thereby charging a higher price for their products and keeping margins high. 7. Talent Management: Motivate employees' morale, inspiring them to be productive and focus on talent management. Good communication combined with consistent training and reasonable compensation will facilitate the retention, as well as motivation of the staff. 8. Financial Monitoring: Set up a system for regular financial monitoring and reporting to control and monitor the flow of money, profitability, and the progress in clearing debts. 9 9. Contingency Planning: Create contingency strategies that account for different economic conditions, including a worst-case scenario. This will help prevent risks by providing techniques for various circumstances. 10. Stakeholder Communication: Communicate openly and honestly with shareholders, lenders, and staff on what the company is doing and its plan for coping during this challenging period. This will boost their sense of inclusion by increasing their trust and comprehension of the company's objectives and future ambitions. Problem Restatement: The well-known apparel and accessories brand Under Armour had significant problems in its North American market in 2020 as a consequence of changing customer tastes, which led to a decline in market share and overall company growth. In order to resolve these issues and boost sales and profitability in this significant market, Under Armour has to concentrate on putting a solution into action. Proposed Solution: Under Armour ought to put a high priority on product innovation in order to create unique designs, meet consumer expectations and preferences, and integrate technological advancements into their product lineup. Conducting market research, which involves tracking and evaluating customer feedback, is another component of the strategy. Explanation of Solutions: This approach aims to solve the problem by adapting Under Armour's product lineup to the evolving preferences and requirements of its customers. By emphasizing innovative designs and cutting-edge technologies, Under Armour can recapture its competitive edge and draw in additional customers.

Action Plan Step 1: Product Innovation 1. Form a dedicated research and development team to boost product innovation. 2. Conduct market research on a regular basis to detect growing consumer trends and demands. 10 3. Work with technology specialists in order to incorporate the most recents technology into product development. Step 2: Market Research and Feedback 1. Create a method for tracking and collecting customer feedback. 2. Analyze feedback to identify areas for product innovation and development. 3. Constantly adjust product offers in response to feedback and market insights. Step 3: Marketing and Promotion 1. Develop tailored marketing efforts based on customer insights. 2. Use social media platforms and influencers to promote new products. 3. Inform customers about the advanced technology incorporated into the products. Step 4: Quality Control 1. Adopt strict quality control measures that will guarantee items being fulfilled reach consumer expectations. 2. Evaluate the quality of materials and manufacturing processes regularly. Step 5: Employee Training 1. Teach employees the value of creativity and customer-focused product creation. 2. Promote an innovative culture within the organization. Contingency Plan (Plan B): Under Armour may think about expanding its product line to target more specialized markets if the internal or external environment makes it impossible to carry out the selected strategy. This might entail entering new market segments or collaborating with other companies. Under Armour has to focus on frequent customer feedback research and product innovation in order to address its shortcomings in the North American market. By carrying out this action plan effectively and keeping backup plans in mind, the company can respond to shifting market conditions and strengthen its position as a market leader.