Grand Strategy Matrix

Positioning Under Armour

Market Growth (Y-Axis): Rapid Growth. The case states the global sportswear market is "growing faster than any other apparel or footwear category" and is projected to reach $231.7B by 2024 (p. 10, para. 2, 3). This places UA in the upper half of the matrix.
Competitive Position (X-Axis): Weak Position. UA holds only 2.5% of the athletic footwear market versus Nike's 50% (p. 9, para. 3), and its CPM score of 2.20 is significantly below average. This places UA in the left half of the matrix.

Conclusion: With a weak competitive position in a rapid-growth market, Under Armour falls definitively into **Quadrant II**.

The Grand Strategy Matrix Diagram

RAPID Market Growth SLOW Market Growth WEAK Competitive Position STRONG Competitive Position I II III IV

Recommended Strategies for a Quadrant II Firm

Firms in Quadrant II are in a growing industry but are unable to compete effectively. They must evaluate why their current approach is failing and how to best change their competitive position.

1. Market Development (Intensive Strategy): This is a primary strategy. Since the North American market is failing, UA must aggressively pursue international markets in Asia and Europe where it is already seeing strong 20%+ growth (p. 1, para. 4).
2. Product Development (Intensive Strategy): UA must invest in R&D to develop truly innovative and, crucially, patentable technology (p. 7, para. 2) to create a sustainable advantage that cannot be easily copied by rivals.
3. Horizontal Integration: UA could evaluate acquiring a smaller, innovative competitor like RYU Apparel (p. 10, para. 4) to gain new technology, enter a niche market, and acquire new design talent.
4. Divestiture: This is a crucial defensive move. The company should divest the non-core, money-losing Connected Fitness division (p. 7, Exhibit 8). This would raise capital and, more importantly, allow management to focus all its resources on fixing the core apparel and footwear business.