Extreme Sports Industry: Under Armour

It should be noted that Under Armour and its competitors form a segment of the Apparel Clothing market geared toward recreational and formal athletics. Under Armour, and its main competitors of Columbia Sportswear and Nike, are recognizible and prestigious brand names in the United States and in many other countries, yet affordable, to an extent, to most middle class Americans. They are popular among teenagers and young adults, and also worn by practical middle aged people and senior citizens. The desirability, versatility, and practicality of these items are intrinsic to the companies and help lead to their success. Specific practical yet luxurious products are offered, such as shirts and pants for running, that help the runner in either too hot or too cold climates. With more and more people trying to exercise for health, beauty, athletic, and other reasons, these types of products are in demand. It seems that there are some Niche markets, and unique products, among each of Under Amour and its competitors, so there is not much threat between the different brands. Also, some recreational and formal athletes would purchase all three brands of items. The industry is considered to be a growth industry, but also somewhat mature as all the brand names are recognized. The following article explains how the author, at the end of 2014, considered Under Armour to be “a great growth stock” http://investorplace.com/2014/12/under-armour-inc-ua-stock-growth/ (Navellier

Companies like Under Armour, Nike and Adidas/Reebok have high threats of substitute´s products. These companies share the sport apparel industry and are vulnerable to competitive pressure from the actions of buyers whenever they view that their products can be substituted for others. The availability of substitutes invites the costumer to compare performance, features, and ease of use as well as price. Under Armour’s major competitors are Nike and Adidas/Reebok because they have a similar or competing product offerings. The top sport apparel brands offer similar products and that is why each one of them needs to keep a high standard and produce good quality products in order for customers to keep buying their product.

Creative Objective: Under Armour's $3 billion in annual global sales pales in comparison with Nike's $28 billion, but Under Armour is increasingly growing its share of the sector, recently overtaking Adidas to become the second-largest athletics brand in the US. Our goal is to launch another star-studded campaign to continue our bid to overtake Nike and become the biggest athletics brand in the world.

According to Under Armour’s website, their mission is “To make all athletes better through passion, design and the relentless pursuit of innovation”. This mission statement reflects Under Armour’s values and belief in growth through innovation. Through their detailed brand image and focus on brand loyalty, they have been able to support strong growth in a highly competitive industry. Under Armour conveys a desire to prove themselves as a long lasting competitor and leader in the performance apparel industry.

Under Armour Inc. is a relatively new competitor in providing high quality and functional sporting goods. Under Armour Inc. encompasses footwear, apparel, and accessories for all types of sport enthusiasts. The company currently provides jobs to about 10,700 employees. However, they are still up and coming and are expected to create new opportunities and work for many others. Their main headquarter is located in Maryland, Baltimore. Though they operate all over North America, Asia, and certain countries of Europe. Throughout all their operations they mostly sell through retailers and whole sale. In addition, they do have factory outlets and their own “direct to consumer” channels located in North America. Under Armour has really been on the

Under Armour, Inc. is ranked among the established sports Kit producers across the globe. It thus enjoys massive sales in several markets. Under Armour has its headquarters Baltimore, Maryland with Kevin Plank as the current Chief Executive Officer (CEO) and Robin Thurston as the Chief Finance Office. The company is committed to developing its brand continuously through advertisement. It is presently listed on the New York Stock Exchange (NYSE) market with a share price of $46.99. The company through its CEO believes that for the company to remain viable in the market, it has to ensure that that its products satisfy the taste of the consumers (Thompson, 2015). Clearly, this has bored fruits, basing the argument on the high consumer turnover that the company enjoys. Moreover, the company has various opportunities to expand in the American markets. All the employees in the organization have to undergo a form of training on the operations of the company. The company is appreciated by several consumers across the globe as a result of the high-quality products it produces and the unique marketing strategies. It is founded on the slogan “protect this house.”

Under Armour already has their footprint in the golf apparel and footwear industry. Recently, Nike decided to exit the golf equipment industry because of decreasing year over year revenues and the competition in the marketplace. Nike’s golf equipment business soared high during Tiger Woods prime playing days but since the decline in Wood’s play followed

The added revenue from intersecting with other markets removes some of the stress of competing in a highly saturated market. As mentioned earlier, a company and its products need to evolve with the market and technology surrounding them. That evolution isn’t just the product but its integration with the current marketing model to show the sponsored athlete winning in their UA HOVR. This product and products similar are necessary for Under Armour if they want to remain successful and hold on to their share of the market and continue their exploration of other converging

UnderArmour is a sports fashion line that has gained 4 billion dollars in annual sales. It also has a continuing rise in stocks since the business began operating. The company’s products consist of a large variety of active and outdoor footwear as well as clothing, accessories, undergarments, and equipment for certain sporting categories. UnderArmour’s products are made from top quality materials via advanced technology so that the footwear can sustain any environment. The company’s footwear has even won against larger companies such as Nike for their better quality in basketball shoes and sneakers. The company has achieved a large number of global endorsements via athletes, sporting events, and department stores.

Acting as two of the largest companies in the athletic apparel business by market share, both Nike and Under Amour, like the wearers of their products, know how to win. Whether it is the Air Mag, Nikes newest product invention or Under Armours 10 year partnership with Major League Baseball commencing in 2020, each company is taking a different approach to grow their business and become the “it” player in its industry. Although long term strategies devised by Nike CEO Mark Parker and Under Armours Kevin Plank may focus on different growth initiatives, when looked at more closely, one will find the many similarities between both firms. The grounds of comparison and contrast I will be using fall into the categories of product development, brand

After completing our research on Under Armour, we found many ways in which they could work to increase their market share. Under Armour first, needs to work on supplying a wider variety of shoes, such as casual wear, to keep up with their current competitors such as Nike. They also must focus more of their attention on the female market and allowing customers to more easily access the brand, increasing distribution through new store locations. Their use of endorsements has been beneficial in targeted areas for Under Armour so far, so an increase in endorsement efforts in other sports will help to not only spread brand awareness but also increase brand equity.

Under Armour is a blooming athletic wear industry which is in a constant battle between Nike, Adidas, Reebok, and many other companies. The thing about Under Armour is that it has only been around for a little while unlike older companies like Nike and Adidas. Basically, I am interested in this article because I love sports. I also love to follow up and stay up to date on the top pro athletes and competitors.

As UA continues to evolve so does its strategy. A company who’s growth was primarily dependent on word of mouth and professional athlete endorsements must now focus on alternative approaches to solidify their brand in new production lines and markets. Athletic endorsements will likely not prove sufficient enough to move its brand from athletic apparel and footwear to newer markets such as women’s apparel and hunting. As UA enters new spaces, they must understand that they cannot carry all of their brand value with them. Their image of tight fitting athletic apparel does not transition well to their new spaces and being that they are not as technology driven as their competitors, creates added pressure to establish a similar brand identity in the newer markets.

The combined athletic-wear and sneaker industry is a highly competitive market. Currently, there is a low threat from new entrants due to the high number of entry barriers created by the traditionally dominant companies such as Nike and Adidas, Under Armours main rivals. Under Armour’s entry in 1996 is the most recent American brand to gain significant market share yet regardless, they still remain significantly behind their competitors in the global market (Strider).

In the performance apparel market the top three competitors consist of Nike, Adidas, and Under Armour, with Nike leading the industry and Under Armour coming in last. The Challenge for Under Armor will be can they stand the pressure from their competitors as they expand into a bigger market. They must be able to provide their customers with either cheaper or better products, the companies marginal cost should be better than that of their competitors, and Under Armour must prove to their customers that their products are different and overall better than their competitors (Terfis Team, 2014). If they’re able to succeed through these risk, then Under Armour will have a fighting chance of competing with those larger companies.