Under Armour Case Analysis

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

Competitors in the industry can wreak havoc on the bottom line for a company. With rivals, a price competition usually ensues, which benefits the customers but hurts the competing businesses that share a common strategy. In reviewing rival sellers, many competitors exist within the sports apparel and footwear industry, but most of them are unable to compete with the industry giants, Nike and Adidas. They are well seated in the industry and their sales reveal this ultimate strength, however, Under Armour is putting pressure on these mammoths. In 2015, global sales of sports clothing and footwear equated to $250 billion, of which Nike grabbed $30.6 billion, Adidas held in its grasp $18.8 billion and Under Armour had a much smaller piece of the pie, at $3.9 billion globally. In reviewing these numbers, it looks like Under Armour is really subpar to the industry giants, but this is not exactly the case. Under Armour in the past couple of

a. Under Armour’s approach towards innovation is very unique, they think and plan out their projects thoroughly in order to create a one of a kind product that could be appealing to their consumers. The company has been extremely progressive throughout the years in order to stay ahead of the other competitive companies in their targeted industry. By constantly updating and coming up with different product lines, such as compression shirts and cleats, Under Armour is able to compete with other top athletic wear company’s in their market. If

Under Armour has proven year over year that they are indeed a growth company. As their brand recognition and product availability increases so do their revenues. Under Armour achieved a growth in net revenue by over 18 percent, increased net income by 22 percent (suggesting financial discipline) all leading to their ability to sustain growth year over year (Under Armour 10K, 2009). This considerable increase in net revenue is attributed to an increase in apparel and the introduction of footwear in the first quarter of 2009 (2009). Although Under Armour has only been around 14 years they have only been traded publicly since 2005 (2009).

The major weakness that has been identified is the lack of Under Armour’s lack of establishment and footprint of the brand around the world. Over 90% of the company's revenue comes from the North American market, which is a major source of concern. They are starting to become a larger brand in the golfing world which will help them gain market share in the western world but still doesn’t help with eastern Europe, Asia, and Africa. They can change this by sponsoring and equipping more soccer and cricket athletes and teams. These are some of the two largest sports in the world and if they are able to get their brand associated with these sports Under Armor will easily become a household

When deciding between us and our competitors, when choosing which performance apparel producer you want to invest into, we know the marketplace for performance apparel, footwear and accessories is highly competitive and includes many new competitors as well as increased completion from established companies expanding their production and marketing of performance products (pg. 6, 10k). We believe we have been successful in competing with others for limited retailer floor space because of the relationships we have developed as a direct result of the strong sales of our products. Under Armour is the official sponsor of the National Football League Combine. They are also the official footwear supplier of Major League Baseball (5 Things You Didn’t

From the beginning, Under Armour has been a very innovative company. CEO, Kevin Plank innovated the way athletic apparel was made. They also still display passion through one of their core competencies, listed in Exhibit 3, which is to bring as much value as possible to their customers. Another one of Under Armour’s weaknesses according to Exhibit 2 is the lack of their international business. When you compare Under Armour to Nike it is easy to see how big of a difference there is between their geographical exposures. While the majority of Nike’s revenue comes from North America, they also have business segments all over Europe, China, Japan and some emerging markets as well. Adidas is modeled the same way. As mentioned briefly earlier, they have large segments of their revenue coming from regions around the world such as Europe, China, Asia and Latin America. When you compare this to the fact that roughly 94% of Under Armour’s net revenues over the past several years has come from North America, it is easy to see why they need to focus on expanding their international business segments in order to keep competing in this industry (Under Armour 10K). Under Armour’s competitors are working to further

Under Armour does have resource strengths in product design and technology innovation know-how was it crucial for Under Armour sales growth and meet customers’ expectation. Customers are curious about all types of new invention release out of someone knowledge, ideas and Under Armour has developed something useful for sports to encounter these weather related. The Under Armour differentiates their product design to regulate body temperature and enhance comfort, mobility, and performance in any type of weather condition. Apparently, it makes them unique characteristic. Under Amrour typically outsourcing the specialty fabric production to meet the specifications and managing their time for company research and development.

Under Armour has been successful in competing in the retail area because they were able to develop a strong relationship with the retailers that resulted in strong sales of their product. Also, brand image and recognition has also made Under Armour to compete successfully because of the quality of their products and selective distribution policies. For Under Armour gear line merchandising is a competitive advantage and in future, they expect to compete for consumer preferences an expect greater competition on the pricing side.

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’s primary strength lie behind it's product quality and innovation. This quality of the product provides high performance and ultimately a strong brand image and loyalty. Another strength would be Under Armour’s ability to develop

Under Armour is an existing firm that has taken large steps to become a major disrupter in the athletic apparel and footwear market. As this will primarily focus on the footwear segment of this company, it is vital to understand that the entire makeup and beginnings were due to the apparel aspect of their venture.

American Apparel (AA) is a well-known United States clothing brand that has gained recognition among the retail industry. American Apparel headquarters is located in Los Angles, California where it manufactures and distributes its clothing products. It is known in today’s society, to be sweatshop free and has a strong belief of workers’ rights. However, American Apparel has had a downfall in the retail industry losing revenue. This research of American Appeal will provide feasible reasons why the company should enter China international market to improve on sales revenue.

Under Armour provides employees with a livable wage, plus benefits, takes all environmental safety policies into consideration, and are happy to please their consumers. Therefore, Under Armour is

Under Armour is currently one of the leading companies in the sports apparel industry whose mission is to “Make all athletes better through passion, science, and the relentless pursuit of innovation”.1 When Under Armour first broke into the sports apparel industry it was a disruptive pioneer that initially made the two giants, Nike and Adidas, a little weary. Under Armour revolutionized the sports apparel industry by creating apparel that used synthetic materials as an alternative to natural fibers, such as cotton, or other materials, such as polyester. This all-important switch to these materials resulted in a 2“shirt that provided compression and wicked perspiration off your skin rather than absorb it. A