Student
9/23/13
Under Armour (Case 26)
Technological
Hot and sweaty t-shirts are a thing of the past. New and innovative material for making clothing has changed the game for sports apparel. Now, high-tech fibers are woven into shorts, shirts, jackets and more that can adapt to and regulate the body’s temperature. This advancement is huge for athletes of all kinds, allowing increased performance and endurance. New “water-resistant” material and fibers that prevent ultraviolet and infrared rays are among the long list of technological advancements taking place in the sports apparel industry.
Demographics
Performance sports apparel has not always been so widespread. It started off as being primarily utilized by major sports teams,
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If a company has a large percentage in a single product category, they are more vulnerable than a company that has a well-diversified combination of products.
Competitive Analysis
Under Armour has several large competitors; the largest being Nike, Adidas and Columbia Sportswear. These companies are similar in that they all stress product innovation, advertising and sponsorships. Adidas is broadly focused in all sporting categories but fails to stand out. Columbia is known almost solely by its winter gear, limiting its growth potential and creating strong seasonality trends. Nike strives to be the best in every segment while Under Armour’s goal is to be a leader in each process of its product development, concentrating on quality over quantity. An advantage for Under Armour is that it is focused more on improving its brand and unique products, licensing other items and accessories through independent manufacturers.
Internal Analysis
Under Armour is continually improving their apparel line and broadening there market. The company has been growing at a substantial rate, 30.5% annually over a 5-year period, largely due to the ambition of Kevin Plank, founder, and also to heavy marketing and promotions. Plank attributes the success of the company to brand recognition and the ability to market to all consumers. Under Armour makes “head-to-toe” apparel for anyone during any season. It has pushed its image into as many stores as it can,
1. Under Armour was founded in 1995 by Kevin Plank. Kevin played football at the University of Maryland and noticed how often he and he’s teammates had to change their undershirts because of all of the sweat they absorbed. The sweat the shirts absorbed made the shirts much heavier and more uncomfortable. He then noticed that the compressions shorts he was wearing were not nearing as heavy and didn’t absorb the sweat the shirt did. This one simple observation kick-started his experimentation to develop a t-shirt for athletes. He experimented with different fabrics in his grandmothers basements until he thought he created the perfect shirt. He sent the shirts to friends that played in the NFL. After receiving feedback, he perfected the design and made his first deal with Georgia Tech, from there the company took off.
Under Armour should exercise a focused, differentiated approach by exclusively developing performance apparel. Its non-standardized products are good for customers who prefer performance than price. For this reason, the corporation should have more emphasis on research and development to offer products, which are superior to what is in the market. On the other hand, its focus strategy should aim at particular sports, serving each sport’s needs more precisely than the broad apparel companies like Adidas and Nike. Combining a focus differentiation strategy will enable the firm to create a fertile niche positioning meanwhile meeting the customer’s specific needs (Kenyon,
Under Armour is a very popular and well-known brand throughout the world, there are many reasons why this is the case and why they are very successful as a company. Under Armour creates value for their customers in many ways, one of these ways is with their basketball shoes. Customers wouldn't want to buy shoes if they didn't think it would be durable and a good shoe. Customers can trust Under Armour’s basketball shoe because it is a shoe that somebody in the NBA wears. This shows that someone is willing to trust their million-dollar contract with their shoes to help them get their well-earned money, and that shows to confidence in Under Armour. Under Armour also gives many different options that the customer can choose from. They offer different technologies, materials, and articles of clothing. There are many different technologies they have, but I will only list a few. One of these technologies is cool switch, this helps athletes perform longer because the clothing will keep them cool and save them from sweating as much which helps save energy. Also, they offer many different materials in case a customer is allergic to a certain type of material there is always another so that they don't lose a customer. They also offer all different types of clothing so that whatever you need they'll have. Based on this research it proves that Under Armour has done so much to get where they are and be as successful as they are.
Under Armour is a very famous sportswear company in the world. It sold products in three categories: apparel, footwear, and accessories. It had a wide variety of innerwear and outerwear in the apparel segment, a broad line of footwear, and a line of accessories for both men and women. Kevin A. Plank, the founder and Chief Executive Officer of Under Armour (UA), was a walk-on special team’s player for University of Maryland football team. As an athlete, he knew what kind of sportswear material would be popular for athletes. Under Armour created a new category of sports apparel: “performance apparel” which focused on the athlete’s performance. In this segment, it had a 78% market in 2009. Because, it paid more attentions on quality, performance
a. Under Armour’s approach towards innovation is very unique, they think and plan out their projects thoroughly in order to create a one of a kind product that could be appealing to their consumers. The company has been extremely progressive throughout the years in order to stay ahead of the other competitive companies in their targeted industry. By constantly updating and coming up with different product lines, such as compression shirts and cleats, Under Armour is able to compete with other top athletic wear company’s in their market. If
There are many companies in the sports apparel, footwear and accessories industry, such as Nike, Adidas, Puma,
In 1996, Under Armour,Inc. (UA) was founded by Kevin Plank as a former University of Maryland football player. Kevin Plank started his business with the idea of alteration athlete’s T-shirt. The shirt uses moisture-wicking fabrics to keep athletes cool and dry, and worked in a body to regulate temperature for enhancing athlete performance (Under Aumour, “About Under Armour” n.d.). Under Armour’s mission statement is to make all athletes better through passion, design and the relentless pursuit of innovation (Under Aumour, “Brand Mission”n.d.). Under Armour has developed different product for athletes to use in different seasons for men, women, and youth such as HeatGear that is designed to be worn in high temperatures,
In today’s athletic market world, being the number one is what many athletes strive for—that is what sets the standards for many sport clothing companies, to deliver products that allow athletes increase their performance while striving to take the number “one” spot. Under Armour works to deliver products that do that and more. Under Armour is currently one of the leading companies in the sports apparel industry whose mission is to “Make all athletes better through passion, design, and the relentless pursuit of innovation” (Under Armour, Inc). Baltimore, Maryland-based Under Armour, founded in 1996 by ex-football player Kevin Plank, who transformed the sports apparel industry by creating apparel that used synthetic materials as an alternative to natural fibers, such as cotton, or other materials, such as polyester. Plank’s mission was to develop a shirt using synthetic materials that handled perspiration most efficiently than was previously expected. Under Armour’s ability to target their products to a wide range of potential clients has enhanced their ability to continue to grow within the athletic marketplace. Under Armour, it is classified as a high-end fitness clothing supplier that appeals to a diverse income audience. This audience has been reached by the outstanding advertising strategies and that include men, women and children. Under Armour currently uses a mixture of pull marketing and different campaigns for its diverse product lines. The overall goal for Under
In the meantime Under Armour has been the pioneer in the latest technology in athletics gear; the second step would be how to transfer the technology into fashionable designs that could satisfy female’s needs and taste. By centering on direct market segment, UA can be the leader and innovator of the female’s market with most fashionable and technologically athletics gear products.
Founded in 1996 by University of Maryland graduate Kevin Plank, Under Armour has become the leading supplier of the athletic performance apparel industry. Under Armour began with simple idea to create a t-shirt that would enhance athletic performance by regulating body temperature and removing perspiration
In terms of competition, Under Armour’s main competitors are Nike, Adidas, Puma, and other sports apparel companies. Nike is the biggest competitor and like UA, it prides itself in its various sports performance clothing lines. For example, the Nike Pro Combat clothing line is specifically marketed towards
Over the years, UA ARMOUR39 ( a compression shirt fitted with electronic touchpoints, retrieving natural biometric signals to a tiny device implanted in the shirt, which allows the wearer to access the data transmitted to a computer to access), UA Scent Control (claiming to be designed so that wearers scent cannot be detected), and Coldblack ( fabric designed to reflect heat, keeping athletes cool in the sun) alone has revolutionized how athletes train and perform. Not only can they train harder and for longer periods of time, they can track and improve their
After completing our research on Under Armour, we found many ways in which they could work to increase their market share. Under Armour first, needs to work on supplying a wider variety of shoes, such as casual wear, to keep up with their current competitors such as Nike. They also must focus more of their attention on the female market and allowing customers to more easily access the brand, increasing distribution through new store locations. Their use of endorsements has been beneficial in targeted areas for Under Armour so far, so an increase in endorsement efforts in other sports will help to not only spread brand awareness but also increase brand equity.
UnderArmour is a sports fashion line that has gained 4 billion dollars in annual sales. It also has a continuing rise in stocks since the business began operating. The company’s products consist of a large variety of active and outdoor footwear as well as clothing, accessories, undergarments, and equipment for certain sporting categories. UnderArmour’s products are made from top quality materials via advanced technology so that the footwear can sustain any environment. The company’s footwear has even won against larger companies such as Nike for their better quality in basketball shoes and sneakers. The company has achieved a large number of global endorsements via athletes, sporting events, and department stores.
Although the fashion titan Ralph Lauren was responsible for the attire during the Olympic opening ceremonies, it was Columbia Sportswear who provided the uniforms for the U.S. freestyle ski team. Whether it was the bouncing on moguls, or twirling through the air, it was Columbia’s logo that was seen flashing across the screen (Banse, 2018). It was not only the United States that recognized the growth and leading innovations of Columbia Sportswear, as Canada, Ukraine, Belarus, Brazil, and Kazakhstan all used the company for uniforms (Becker,