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The aspect of organizational development approach to innovation in Under Armour is a costly strategy, viable to the risk of failure. The approach to transforming the company’s culture, climate and strategies require close scrutiny. This strategy entails both internal and external elements of the organization. Although Under Armour Company may strive to implement these strategies from within, the correlation between the external factors such as competitors and the customers is the unforeseen contingency that makes the innovation outcome unpredictable. The reparations of the innovation resulting from failure may expose the company to a higher risk of unmanageable competition, loss of market share and a bad reputation in the apparel industry. Other risks such as financial insecurity are likely to emerge if the innovation is not managed strategically.
Assessment of the viability and risk of the innovation is important to help Under Armour in reducing chances of the risk. The assessment begins with the evaluation of the innovation needs. Over the last 1 year, the company has not been able to meet its sales target of 20%. In the fourth quarter of the year 2017, the company holiday sales declined to 17%. The decline in the company sales is putting the company financial status at a crisis, which is a threat to the investment sector. The Under Armour shares plummeted by over 25% following the decline in the sales. Among the major causes of the decline in sales is the bankruptcy of the apparel retailers in the North American market, which Under Armour Company depended much on. Nike and Adidas have posed a threat to the company through competition. The company culture is promotion based. From the company reports, much of its extension projects have majored in advertisements, promotions, discounted sales and the digital ‘connected fitness’ app. The company has paid less concern on customer satisfaction and market extension. Molloy’s, the company’s chief financial analyst threatens to leave office due to the pressure and high expectations from the company management (“Under Armour, Inc. -“, 2018).
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