What Is The Case Study Of Under Armour

The industry that will be analyzed in the following paper will be the athletic wear industry. The firm in particular that will be analyzed will be analyzed is Under Armour. Assessing the athletic wear industry using Porter’s 5 forces, New Entrants is the first thing analyzed. The threat of new entrants within the industry is low. It is medium because there are already many well-established brand names; including Nike, Adidas, Rebook, Puma, Champion, Patagonia, and The North Face are just a few examples of these brands. Triefs Under Armour analysis shows these companies can create competition by joining sub industries that Under Armour is involved in that they are not as competitors. Also there is often large capital cost within the industry for branding, advertising and creating demand. When analyzing the rivalry within the industry Under Armour faces , Triefs

Under Armour’s competitive strategy is to provide an alternative product that is superior in quality and is offered with multiple price options when compared to its rivals. When UA was launched, their target market focused on selling exclusively to sports and training camps, college sports teams, professional athletes, and equipment managers. To compete with Adidas, and Nike, UA shifted their competitive strategy from focused differentiation to broad differentiation: broadening their product line-up to include women’s, and children’s performance products, as well as their accessory line.

I believe that bargaining power of customers and threat of new entrants are the three main key forces that have the potential to impact negatively Under Armour’s growth stability. Under Armour relies mainly on Dick’s Sporting Goods and The Sports Authority for more than 20% of its revenues and problems at these retailers could affect its growth pace. While Under Armour faces rigid competition from Adidas and Nike, they could also see the competition go up from other companies as it does not hold process or fabric patents. Furthermore, Under Armour’s hard core competitors, Nike and Adidas Group, are continuously coming up with new ideas in order to fight for that number one spot and to earn the customers’ loyalty to their brand.

The sports apparel industry is comprised of performance gear, but also includes active wear for casual use. Under Armour produces both performance gear and apparel, so they fall into this industry. The industry is controlled by giant, international companies such as Nike and Adidas. Currently, Under Armour is a small company and is not competing well with respect to the criteria described in the company analysis

Since the evolution of the company, Under Armour rapidly expands their business while some internal problems still exist. For example, unprotected intellectual property right issue and supplier relationship management. Also, the current business strategy was focusing on marketing, international expansion, product differentiation, and other expenses while they have weak financial management. These will certainly pose future problems to the company.

Additionally, customers could also gravitate towards other brands on account of factors such as advertising, sales promotions, product endorsements, and changing taste. However, Under Armour is known for their innovative product portfolio and high quality products; thus, they want prices that are reasonable for premium athletic apparel and bargaining with buyers takes up a large share of management's time, cost, and effort. Thus, their is a mild impact when considering the overall competitive bargaining power of buyers of performance sports

Although Under Armour has a big market within the United States, Under Armour has been facing a hard time trying to gain entry into foreign markets, such as Europe. These 'entrance barriers’ include. Increase in competition also the limited scope of their main sport “American Football”. In Europe, the small range of the company compared to the larger, more established companies within the region. Given there is not a clear apparel supermarket in Europe and Under Armour 's has a clear. History with amazing advertising of its products, it’s

The company is leading the industry of sporting accessories and clothing. Under Armour products have been winning the market over it’s competitors products.

The company’s second strategic factor is its narrow product focus. Unfortunately, because the company began as a producer of compression shirts and it maintained this offering for long period, it eventual hampered their product offerings. At the moment, Under Armour are only focused on athletic wear apparel and as a result have a limited product offering. This also translate to the offerings geared towards women, which are significantly lower than their male clientele.

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

The management strategy set by Kevin Plank is based on innovation technology used in their material, and the great marketing development has given them an edge over other competitors. The company has the ability to offer anything and everything that has to do with fitness and athletics accessories. The reputation to make performance gear provided a competitive advantage. The SWOT analysis provides a clear summary of the strength, weaknesses, threats, and opportunities facing Under Armour. This analysis provides an in-depth combination of the internal and external environment.

Under Armour is a well known and top of the line product that is succeeding in various market and this is why they charge for a higher price than its competitors. Customers have high expectation of its product quality and have great value out of it. Target market is mostly health conscious people that value how a product benefits and its function them rather than comparing its price to other brand.

In this text, we have conducted a strategic audit of Under Armour to establish the strength and weaknesses of their strategies. We find that the company’s strengths are innovation, brand association, high quality apparel and increase in sales every year. Major weaknesses demonstrated

Resources and Capability: Under Armour has been able to grow its revenue at an average rate of 15% over the past 5years. This is because it has been able to minimize its level of debt and profits are reinvested to develop new products. This financial resource creates a key competitive advantage for Under Amour, as very few companies are able to enter into a market such as this; that is majorly capital intensive. To enter a market outside the United

Under Armour, Inc. operates in the the industry of textile-apparel clothing. According to ValueLine.com, “The apparel industry is mostly for companies that design and sell clothing, footwear and accessories.”  Under Armour works primarily with production of sportswear apparel, so their main focus in the industry is to create products that provide outmost comfort and improve overall performance of their athletic consumers. According to the 10-K, the industry is under a lot of pressure from competition and retailers to reduce the costs. As the report quotes, “These factors may cause them to reduce their prices to retailers and consumers, which could cause their profitability to decline if they are unable to offset price reductions with comparable reductions in their operating costs.” The overall economic outlook of the US Apparel industry, seems to be looking up. Due to the lower prices of cotton, the input costs have decreased, leaving more profit. However, the value of the dollar is growing stronger, as according to the 10-Q released on September, 2015, causing a negative impact on “gross margins within our international businesses.” Since operating in the industry of textile-apparel clothing Under Armour has a number of major competitors. This includes Nike Inc., Columbia Sportswear Company and Adidas just to list a few.  Under Armour has shown itself to be a tough competitor.  Its growth has been strong so far and has made significant