Analysis Of Under Armour

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Buyer Power We found that there are several available substitutes creating a middle-tired buying power. Although the industry has several players, Under Armour’s ability to supply premium differentiating products helps maintain its competitiveness against lower-tier brands. Studies have shown that many customers purchase brands due to brand recognition and association (Strider); this in turn has lead companies such as Nike, Adidas and Under Armour to invest heavily in athletic sponsorships and endorsements. Stephen Curry and Tom Brady are among the athletes whom Under Armour has signed to a multi-million dollar endorsements (Under Armour Roster).
Threat of Substitution There is a high threat of substitute products. Over the past years, the demand for athletic apparel has significantly risen (Strider). Under Armour has positioned themselves in an elite class of premium brands that has established brand loyalty. However, many traditional clothing brands such as Gap have begun to release activewear through promotional runs such as GapFit. Furthermore, consumers may substitute athletic apparel wear with regular clothing, which is an inexpensive option.
Supplier Power Generally in the athletic apparel industry, suppliers of direct materials such as cotton, polyester and compression sell their materials to companies competing with one another in the same industry. With regards to Under Armour, they’ve failed to establish long-term contracts with suppliers, allowing them to
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