December 17, 2010
INBM 400 Seminar
Final Case Study
Under Armour
Under Armour is an emerging company in the sports apparel industry whose mission is to “Make all athletes better through passion, science and the relentless pursuit of innovation”. Under Armour was a disruptive innovator in the sports apparel industry by creating sports apparel using synthetic materials as an alternative to natural fibers, such as cotton. This important change in material resulted in a “shirt that provided compression and wicked perspiration off your skin rather than absorb it…that worked with your body to regulate temperature and enhance performance”. This promise to increase athletic performance differentiated it from competing sports apparel companies, but rivals have since implemented synthetic materials into their product lines. This case study seeks to analyze Under Armour’s history, resources, capabilities, and core competencies, business and corporate-level strategies, as well as the general environment and competitive landscape. After careful inspection of these varying areas, the factors contributing to Under Armour’s current success and future challenges will become clearer.
The conception for Under Armour began over a year ago when CEO Kevin Plank played on the University of Maryland football team. Frustrated with having to repeatedly change his cotton shirt during practice, he envisioned a shirt whose materials allowed the perspiration to dry quickly, causing the athlete to be quicker, faster, and stronger as a result of less burdensome water weight. he strived to develop a shirt using synthetic materials that handled perspiration better. He developed a shirt that used synthetic materials to handle perspiration better and tested the prototype with his own football team. After he graduated, Plank went to different universities trying to sell his product. His big break arrived after managing to earn Georgia Tech’s football team as a client. As the
References: Collins, J. (2005, July). Level 5 Leadership: The Triumph of Humility and Fierce Resolve. Harvard Business Review, 83(7,8), 136-146. Drucker, P. F. (1985). Innovation and Entrepreneurship: Practices and Principles. New York, N.Y: Harper & Row Publishers, Inc. Hitt, Ireland, Hoskisson (2009). Strategic Management: Competitiveness & Globalization. Mason, OH: South-Western Cengage Learning Hyman F Judge, T. A., & Robbins, S. P. (2007). Organizational Behavior (12th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall. Ulman, D. (2008, March 25). Maryland-based Under Armour 's CEO Kevin Plank takes a pay cut. The Daily Record, p. 1. Retrieved November 19, 2008, from ABI/INFORM Dateline database. Under Armour, Inc [ 4 ]. Robbins & Judge, 2007, p. 437 [ 5 ]