Under Armour: Performance Apparel Industry

Under Armour Case Analysis
1. Five forces analysis for the performance apparel industry
Buyer Bargaining Power: High
There are a lot of performance apparel companies out on the market, which has created a wide variety of product options for customers. With different brands out on the market, each one has its own specific style and designs, which allows the customers to choose who has the best quality and price.
Substitute Products: Low
Having a lot of performance apparel companies out on the market causes competition and this will provide similar products at a lower price. Although, since the majority of Under Armour’s customers are athletes they must create high quality products. Under Armour must set their prices high because the
It is very unlikely for loyal customers of the big companies to switch to the new entrants. For the new entrants to steal these loyal customers away they need to create a product that has a better design, better quality and a more competitive price.
Rivalry: Very High
Rivalry in the performance apparel industry is very high because each company is creating similar products for performance apparel and shoe apparel. Not only is the product very similar but the prices are very similar and this will create heavy rivalry in the marketplace.
2. SWOT Analysis
Strengths: UA has a wide variety of performance apparel products with high quality material and their main focus is how their apparel performs for the user. With Under Armour being sponsors for high school, college and professional level athletes, they have created their image as a strong brand with a high quality product.
Weakness: With their product being high quality, it unfortunately comes with a high price. The high prices of UA’s products can cause a decrease in their sales and lose customers to other brands that offer lower
The budget has been distributed to the following areas: Sports Marketing, Retail Marketing and Product presentation.
Sports Marketing: UA believes that if their product is being worn by high performing athletes and teams on high school, collegiate, and professional levels, then they are promoting their company’s authenticity and also increasing their exposure to potential customers. The way UA has done this is by offering contracts to sport teams and athletes on both the professional level and semi-professional to secure endorsements of rising sport stars.
Retail Marketing and Product Presentation: The primary objective of this strategy is to increase floor space of UA products in stores, inform consumers about their products, and creating a more engaging and sales productive way for consumers to shop for their products. UA was able to do this by working with retailers about having their products more visible and also reinforcing the message that UA’s brand was distinct from those of its competitors.
Media and Promotion: Just like their competitors, UA uses multimedia and many other promotional outlets to highlight their company and the differences in their products compared to the