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TOWS Matrix: Strategic Alternatives

This matrix matches Under Armour's internal factors with its external factors to generate a set of feasible, actionable strategic alternatives. The goal is to leverage strengths, mitigate weaknesses, seize opportunities, and defend against threats.

Strengths
Weaknesses
Opportunities

SO Strategies (Maxi-Maxi)

  • Aggressively expand in Asia-Pacific by opening 50 new brand house stores over two years, leveraging strong brand endorsements and existing international growth momentum to capture share in the world's fastest-growing market. (Uses S1, S2; Exploits O1, O2)
  • Launch a premium "UA Smart" apparel line by integrating new wearable technology into products, using the Connected Fitness data and innovation history to establish a first-mover advantage. (Uses S4, S5; Exploits O5)

WO Strategies (Mini-Maxi)

  • Acquire an innovative materials science firm to secure proprietary technology and patents, addressing the core competitive disadvantage of being easily copied by rivals. (Fixes W4; Exploits O5)
  • Launch a dedicated women's athleisure line sold primarily through the high-growth DTC e-commerce channel to address the underperforming women's segment and capture this major market trend. (Fixes W5, W7; Exploits O3, O4)
Threats

ST Strategies (Maxi-Mini)

  • Launch a focused "Only for Athletes" marketing campaign using elite endorsers to differentiate from fashion-focused competitors and combat declining brand loyalty by reinforcing performance authenticity. (Uses S2, S6; Mitigates T1, T3)
  • Reduce exposure to failing wholesale channels by 20% over three years, shifting that volume to the more profitable and stable DTC channel to insulate UA from retailer bankruptcies. (Uses S3; Mitigates T2)

WT Strategies (Mini-Mini)

  • Implement a $100M restructuring in North America involving closing underperforming retail accounts and reducing SG&A expenses to restore profitability in the company's largest but most threatened market. (Fixes W1, W2; Mitigates T1, T2)
  • Divest the unprofitable Connected Fitness division. It is a financial drain (losing $55M) and a management distraction, and selling it would raise capital to defend the core apparel business. (Fixes W2, W10; Mitigates T1)