Preview

Under Armor case Study

Satisfactory Essays
Open Document
Open Document
428 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Under Armor case Study
1.
Competitive Rivalry Within The Industry Medium to High
Bargaining Power Of Customers (Medium) They have wholesale and end customers as well as independent salesagents in different countries
Threat Of New/Potential Competitors Medium
Bargaining Power Of Suppliers Low to Medium
Threat Of Substitute Products Low
Some of Nike and Adidas products are patented, Under Armour does not have patent rights which means their products can be easily copied Nike and Adidas are both trying to get their market share in the apparel industry. Compared to Under Armour, they have greater resources and it would likely be easy for both companies to penetrate the market.
2. Does Under Armour have any core competencies and, if so, what are they?
YES,
CEO Kevin Plank was a former athlete
Product Development and Innovation
Performance and Marketing Campaign
3. Does Under Armour have any resource strengths or competitive capabilities that qualify as a distinctive competence? YES
Product Performance and Brand Image n-house Marketing/ Brand Promotion
4. What does a SWOT analysis reveal about the overall attractiveness of Under Armour’s situation?
Strength:
The innovation and technology behind Under Armour is a keydriving force to rapid expansion
Under Armour’s major strength was its products performance and strong brand image; these factors established Under Armour as a well recognized and respected brand name
Core competence in research development and innovation Weakness
Limited product line that is mostly targeted to males.
Global Brand Recognition
Opportunities
expand its product line to various segments; thus,increasing both sales and product portfolio womens apparel childrens apparel running outdoors
Exit Strategy (sell to Nike)
Global Expansion
Threats
Intense competition (Nike, Adidas, etc.)
Substitute Products
Changes in consumer trends/behavior
5. What are the key elements of Under Armour’s strategy?
Fabrics are engineered in many designs and styles for wear in nearly

You May Also Find These Documents Helpful

  • Better Essays

    Even though it is one of the most competitive athletic wear brands in the Unites States, there are a few issues that prevent Under Armour from surpassing its competitors. Under Armour is not as geographically diverse as Adidas and Nike, which inhibits the company from a great amount of potential profit. Although competitors are currently more widespread than Under Armour is, Under Armour…

    • 806 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Under Amour’s strength is innovative and unique technology of their products. “For example, in 2013, the company released a shirt that tracks athlete’s heart. Sensors in the brand’s shirt are able to pick up electrical signals from the heart. Additionally, Under Armour developed the tape replacing clear that gives ultimate support, and pivot freedom for athletes.” (Horovitz 2012) These Innovations give Under Armour a competitive edge against other sporting retail brands. As the company continues to keep up with society’s technology advances, it can remain a hot topic in its industry in the eyes of many consumers. Also with the invention of the compression undershirt, Under Armour was founded on innovation within the athletic industry. From the company’s humble beginning to now, Under Armour has kept a continuous focus on meeting the changing needs of athletic industry with new, innovation technology. The company has a natural fast-dying cotton.(Jackson and Day P12-18)…

    • 296 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Case Study Under Armour

    • 877 Words
    • 4 Pages

    In this case, I will provide my recommendations, analyze, and share my interpretation of this case. Under Armour( UA) is a distributor of athletic apparel, accessories and shoe wear. There strategic issued is to be able to compete in the sports apparel industry against big names such as Nike and Adidas. In order for them to be successful, they have to be able to meet their market share. UA needs to open up its industry to include more women apparel and shoe wear as well as reach other people globally. In order for them to target a large number of consumers and to compete against Nike or Adidas, they need to be able to reach the same genre of people in the United States and other countries. One strategic issue the company is facing is in the…

    • 877 Words
    • 4 Pages
    Good Essays
  • Good Essays

    When it comes to athletic apparel, the first company people think of is either Nike or Adidas. Why? Both Nike and Adidas have done an impressive job in marketing their products, with popular spokesperson like Kobe Bryant or Derrick Rose. Nike’s success is attributed to its products contributing to the success of the athletes who purchase them. Nike and Adidas seemed as though they had control on the athletic apparel oligopoly, but recently, Under Armour has become a serious competitor to the two companies. The road to becoming a legitimate competitor has been tough, specifically because of the competitive nature existing between firms in the same market. The market structure, determinants of supply and demand, and future outlook of the company can help us see the state and performance of Under Armour.…

    • 1030 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Under Armour is a rising sportswear brand that is known for the innovation and performance in their products. However, there are some obstacles preventing Under Armour from reaching their full potential. This proposal plan aims to address one of Under Armour’s main weaknesses. Under Armour is currently lacking in international sales, making up less than a tenth of their total revenue (Horovitz). In order for Under Armour to grow as a brand, they need to boost their global presence. A reason why Under Amour’s internationals sales are low is because of their lack of success in soccer-related sales. It will be important for Under Armour to be successful in soccer because it is a global sport played all across the world. My proposal for Under Armour is to endorse German-American soccer star Julian Green. He plays for Bayern Munich, Germany’s top club team and the US national team. Although, he is only 19 years old, he is extremely talented and has the potential to be a superstar in the sport. He could be a marketing asset for Under Armour, helping us drive up soccer-related sales both domestically and internationally.…

    • 189 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Nike Swot Analysis Essay

    • 482 Words
    • 2 Pages

    There are several significant athletic and leisure footwear companies and sports equipment firms that produce similar products. Some of the primary ones are Puma and Adidas are some of the big competitors with Nike. Other large companies have diversified their product lines to include athletic and leisure apparel including Under Armour and lululemon. This type of quick change in technology and customer preferences can result in a risk for Nike. Demand for Nike’s products relies on what the norm in many sports and fitness related activites are, as well as the ever-changing trends, these generally control the financial results of Nike. If competitors have more success attracting customers with more appealing footwear or apparel, this would also hurt business…

    • 482 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Nike was incorporated in 1968 and has become arguably synonymous with elite footwear/apparel amongst the world population (Nike 10K, 2009). Nike’s primary business “is the design and development and worldwide marketing of high quality footwear and apparel” (2009, pg.1). In addition, Nike also designs/markets sports equipment and accessory products. Nike puts a heavy emphasis on investing in the innovation and design of their products to give their customers a high-quality product. Nike is the largest seller of athletic footwear and apparel in the world (2009). Nike sets the bar for other companies in the sports apparel/footwear industry, like Under Armour.…

    • 5144 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    Nike Ethics Case Study

    • 735 Words
    • 3 Pages

    The competitor gaining the most ground is Under Armour, though “Nike continues to have a more attractive valuation than Under Armour (Keulen, 2014).” Similar to Nike, the Under Armour Company is aggressively pursuing profitable sponsorship deals, giving them a rising portion of market revenue. Nike makes more than 10 times the revenue of Under Armour, but the brand frequently find themselves squabbling over endorsement deals and sponsorship (Goodkind, 2014). “Under Armour has also grabbed Adidas’ spot as the second-largest sporting brand in the United States with Nike being ranked number one (Goodkind, 2014).” But despite this new rank and a predicted revenue growth of 20% each of the next five years, Under Armour finds its total annual revenue to be the equivalent of Nike’s advertising budget (Goodkind,…

    • 735 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Kevin Plank Under Armour

    • 436 Words
    • 2 Pages

    Under Armour has several strengths, weaknesses, opportunities and threats. One of their greatest strengths is the technology. For instance, they released a shirt that tracks an athlete’s heart and picks up electrical signals. They get recognition from other professional athletes and schools. The product is diverse and uses eco-friendly procedures. Their weakness is they provide a limited amount of footwear. 80.2% of their brand contains apparel, 12% is footwear and 7.8% other. Their material is limited and also have opposition from other well-known brands such as Nike and Adidas.…

    • 436 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Under Armour

    • 996 Words
    • 4 Pages

    Brands like: Under Armour, Nike and Adidas/Reebok are in a highly competitive industry where the dominant competitors have significant range of market coverage that makes it difficult to find an entry point. A newcomer is going to face two classes of factors: the expected reaction of incumbent firms to new entry and the barriers to entry. The newcomers are going to have to deal with the cost advantages enjoyed by the industry incumbents because when first entering a market newcomers are going to have to “buy” their way in. Also the stronger the attachment of buyers to…

    • 996 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Under Armour

    • 2706 Words
    • 11 Pages

    In 1996, as a football player at the University of Maryland, Kevin Plank grew tired of the cotton t-shirts he was provided becoming soaked with sweat and rain, impeding his ability to move fluidly as a special-teams player for the Terrapin football team. Knowing that cycling outfits and football under shorts were made with a "moisture-wicking synthetic fabric", Plank believed it possible to make a t-shirt out of such material. He observed the content label of his moisture-wicking undershorts and bought the same material from a fabric store, subsequently paying a tailor $460 to sew seven shirts using the fabric. Plank 's and six other teammates wore the shirts in practice and all agreed that Plank was on to something very positive. In response, he went to New York 's garment district and had hundreds more samples made, calling his invention "Under Armour" and subsequently founding the company as it is known today through the initial backing of angel investors (Business Week.com, Carey, John, 25 May 2006).…

    • 2706 Words
    • 11 Pages
    Good Essays
  • Good Essays

    Both Nike and Under Armour are similar in many ways. To begin, both are very reputable brands. Nike and Under Armour are both supported by people all around the world. Worn by nearly everybody if not everybody. Next, these two brands have a bunch of apparel for all kinds of sports like football, baseball, basketball, and a bunch of other sports. They both have football cleats. They also have basketball shoes. Both of these brands…

    • 516 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Case 1 Mystic Monk

    • 787 Words
    • 4 Pages

    Popular athletic brands such as Nike, adidas and Under Armor are specializing in different aspects such as basketball and outdoor sports which are mainly for men thus, it has a different target market and brand identity as opposed to lululemon.…

    • 787 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Under Armour (UA) was the pioneer company that introduced performance apparel with moisture management to keep athletes dry, cool, and light while practising or competing. Founded in 1996 becoming a public company in 2005, UA now competes globally in the multisegment retail market for both sports apparel and active wear, though 90% of its sales are in North America. In 2011 UA’s market share was approximately 2.8% compared with Nike at 7.0% and Adidas at 5.4%. UA is in a good financial position with sales of almost $1.5 billion and consistent profits over the past five years, though 2011 saw an 80% increase in its debt obligations compared to the prior year.…

    • 4455 Words
    • 18 Pages
    Powerful Essays
  • Satisfactory Essays

    Under Armour Case Study

    • 639 Words
    • 3 Pages

    Briefly describe the business/organization/institution: An American defense agency focused on using scientific technologically to provide accessible solutions to the world.…

    • 639 Words
    • 3 Pages
    Satisfactory Essays