Under Armour -- Industry Analysis Essay - 999 Words

September 2013 1. Situation analysis A. General Environment Sociocultural/Demographic – Under Armour was able to build its brand image through extensive sponsorship. Under Armour now provides gear to the NFL, MLB, MLS, NHL the USA baseball and Ski teams including other professional leagues abroad. In 2005, Under Armour was supplying over 100 NCAA division I-A football programs and 30 NFL teams. Only four years since its founding Under Armour had become a globally recognized brand, and was still looking for areas to branch into within the performance apparel industry and introduced a women’s and youth line. Technological – Founder, Kevin Plank found a niche, an undershirt that could control the body temperature of the athlete and†¦show more content†¦making the power of the supplier high. 70-75 percent of Under Armour products come from only 8 suppliers that manufacture and distribute their product. Making a product such as athletic shoes is the least difficult part of being in this industry, making a product worth buying and competing at the global level is where most fail when attempting to enter the market. Power of Buyers Buyers want to reduce their costs and purchase a product at a lower or more convenient price for the best quality and service. Buyers have the choice to switch to another product at no cost. Under Armour has developed unique products that its consumers value and are willing to pay more for. Threat of Substitutes – There is a high threat of substitutes in the athletic gear industry especially when competing with companies such as Nike and Adidas who have been around much longer, have the funds to continuously innovate their products and already hold a large market share. Under Armour has used â€Å"authenticity† as it’s guiding principle to grow the company and advertise their products, but if they wish to be the number one brand of athletic gear they will have to appeal to people who are also concerned with the look of the product and not just performance. According to research done by NPD Group, almost 80 percent of activewear is used for non-sports activities. â€Å"Under Armour will need to find aShow MoreRelatedThe Marketing Strategy Of Kevin Plank Essay1210 Words   |  5 PagesKevin Plank has founded Under Armour after noticing the failure of their sport jersey (Under Armour, 2015). Since that time Under Armour went public and is part of American well-known sport gear mak er. In this pose, the company produces its production focused on inner various sports wears on a global stage (Under Armour, 2015). Identically, Plank’s business becomes emerging in the sport apparel industry. Likewise quality and innovation are important to maintain an acceptable competitive level withRead MoreUnder Armour Company1179 Words   |  5 PagesUnder Armour, founded in 1996 by CEO Kevin Plank, is a non-financial company that is publicly traded on the New York Stock Exchange. Under Armour supplies an array of sports equipment, clothing, and sports accessories, but mainly focuses on hi-tech innovative products for athletes. Plank, a former University of Maryland football player created the idea of Under Armour in his grandmother’s basement. Plank noticed during a football practice that his compression shorts would stay dry, however, he hadRead MoreUnder Armour1100 Words   |  5 PagesIBM 4711 International Strategic Management Under Armour: Working to Stay on Top of Its Game Perform a STEEP analysis to understand the general environment facing Under Armour. How will the firm be affected by external factors? Ans. Each factor under STEEP analysis giving Under Armour more information about how company should adapt itself, in order to be survived in the market. Let’s see the effects of these external factors to the company’s strategies each by each. Social factor Demographics Read MoreCompany Analysis Of Under Armour1076 Words   |  5 Pages Company Analysis of Under armour November 4th 2015 Management 300-101 Joshua Cooper 11/15/2015 Analysis of Under Armour Induction: Ever since the creation of the well-known body wear Under Armour in 1996, Kevin Plank s formal University of Maryland football player. The band has under gone rapid expansion and popularity throughout the world today being that it all started in a basement. It has taken over the performance workout apparel market in the United States andRead MoreCase Analysis : Under Armour1367 Words   |  6 PagesCase Analysis: Under Armour Situation Analysis I chose the article â€Å"Under Armour is Crushing it, Thanks to Steph Curry.† The article began by explaining how Under Armour recently became a dominant company in the sports apparel industry. Footwear sales are up 64% from the first three months of 2016, and overall sales have increased by 30%, largely due to overseas business. The reason for this continued success? Stephen Curry. In 2013, Curry’s contract with Nike expired and he chose to endorse UnderRead MoreThe Under Armour, Inc., And The Adidas Group1634 Words   |  7 PagesIntroduction This analysis of the Under Armour, Inc., and its subsidiaries is depicted in the paper; Under Armour and its subsidiaries develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company is in direct competition with Nike, Inc. and The Adidas Group. Therefore, this paper will further attempt to evaluate the pressure exertedRead MoreSwot Analysis Of Under Armour987 Words   |  4 PagesExecutive Summary Under Armour is a company that always strives to do better. They are currently trying to expand globally. While Under Armour has higher quality than most of its competitors, the cost of their merchandise is still a lot less than competitors. There are many threats to a highly-competitive sports clothing company such as Under Armor. Like many companies in the retail industry they are faced with the increasing costs of their materials and shipping expenses. Under Armour is trying to connectRead MoreCompetitive Forces Confronting Under Armour, Nike, And The Adidas Group1726 Words   |  7 Pagescompetitive forces confronting Under Armour, Nike, and The Adidas Group? Do a five-forces analysis to support your answer. Under Armour, Nike and Adidas are the top three brands known worldwide. These three companies were able to gain a strong brand to make a name for themselves in the sports apparel market today. On the other hand, Under Armour has become one of the top leading distributing companies to offer athletic apparel, footwear amongst many other things. â€Å"In 2013, Under Armour had a 14.7 percent shareRead MoreThe Impact Of Marketing On The Athletic Apparel Market1233 Words   |  5 Pagested product. Threat of New Entrants is low since the growth rate is expanding in the athletic apparel market and existing industry members are actively reaching into product segments or geographic areas where they do not have a strong presence. There is an entry barriers for new entrants in building a retail distribution, a large reliable supply chain, and securing contracts for endorsements and promotions. The other companies are established and credible brands that work on global scales. A smallerRead MoreMGMT 479 UNDER ARMOUR Powerpoint Group Essay1065 Words   |  5 PagesTeam Developed Strategic Audit – Under Armour (UA) { Group #3, MGMT 479C Team Members: WELCOME TO UNDER ARMOUR ® EVERYTHING HERE IS BUILT TO MAKE YOU BETTER. www.underarmour.com Kokou Klu ïÆ'‘ Past Corporate Performance Indexes (2009-2010) ïÆ'“ ïÆ'“ ïÆ'‘ Strategic Posture ïÆ'“ ïÆ'“ ïÆ'‘ Mission – â€Å"To make all athletes better through passion, science, and the relentless pursuit of innovation† Objectives – Become â€Å"The athletic brand of this generation. And Next.† Current Strategies ïÆ'“ ïÆ'“ ïÆ'“ ïÆ'‘ Decline in footwear