Under Armour Strategic Analysis
Under Armour: Case 1
The following is an environmental analysis of the “performance apparel” business sector of the athletic apparel industry, with an analysis on Under Armour, the 3rd largest athletic apparel company. The company is clearly rapidly growing, touching markets that have been dominated before, but continues to pride themselves on the performance of their products. The first section of this analysis will cover the trends in technology, economics, demographics, socialites and culture, as well as politics and legalities. It also includes coverage over Porter’s 5 forces and analysis’ of the industry and competitors. It will be concluded with strategies of success of the company as well as alternative strategies.
Demographics
In the terms of the overall athletic market, Under Armour claims 31% of the market share, Nike 36%, and Adidas and other athletic companies claiming the remainder. In their specific products, Under Armour claims 75% of performance apparel market share, with Nike and Adidas struggling to catch up. The company targets consumers of all ages and all demographics. Their consumers include men, women, and children; athletes, coaches, fans, active people, athletic staff, and anyone who lives an active life style. Their consumers can attain their products through their website, 15,000 retail stores across the country, regional retail chains like Academy and Dick’s sporting goods, and as of 2007, 17 retail outlet stores. Approximately 94% of Under Armour’ sales in 2010 were in North America, with the remaining 6% split in international markets that included Latin America, Europe, the Middle East, Africa and Asia. Under Armour’s products appeal to people of all ages and areas and priding themselves on performing apparel that can be used in multiple sports, climates, fits and any life style. The price of Under Armour products are considered to be premium quality with premium performance and consumers with considerable disposable income continue
The following is an environmental analysis of the “performance apparel” business sector of the athletic apparel industry, with an analysis on Under Armour, the 3rd largest athletic apparel company. The company is clearly rapidly growing, touching markets that have been dominated before, but continues to pride themselves on the performance of their products. The first section of this analysis will cover the trends in technology, economics, demographics, socialites and culture, as well as politics and legalities. It also includes coverage over Porter’s 5 forces and analysis’ of the industry and competitors. It will be concluded with strategies of success of the company as well as alternative strategies.
Demographics
In the terms of the overall athletic market, Under Armour claims 31% of the market share, Nike 36%, and Adidas and other athletic companies claiming the remainder. In their specific products, Under Armour claims 75% of performance apparel market share, with Nike and Adidas struggling to catch up. The company targets consumers of all ages and all demographics. Their consumers include men, women, and children; athletes, coaches, fans, active people, athletic staff, and anyone who lives an active life style. Their consumers can attain their products through their website, 15,000 retail stores across the country, regional retail chains like Academy and Dick’s sporting goods, and as of 2007, 17 retail outlet stores. Approximately 94% of Under Armour’ sales in 2010 were in North America, with the remaining 6% split in international markets that included Latin America, Europe, the Middle East, Africa and Asia. Under Armour’s products appeal to people of all ages and areas and priding themselves on performing apparel that can be used in multiple sports, climates, fits and any life style. The price of Under Armour products are considered to be premium quality with premium performance and consumers with considerable disposable income continue