Under Armour: Performance Apparel Competitors

company has been in existence for a little over 15 years and has made huge strides in the textile,

Competitors in the industry can wreak havoc on the bottom line for a company. With rivals, a price competition usually ensues, which benefits the customers but hurts the competing businesses that share a common strategy. In reviewing rival sellers, many competitors exist within the sports apparel and footwear industry, but most of them are unable to compete with the industry giants, Nike and Adidas. They are well seated in the industry and their sales reveal this ultimate strength, however, Under Armour is putting pressure on these mammoths. In 2015, global sales of sports clothing and footwear equated to $250 billion, of which Nike grabbed $30.6 billion, Adidas held in its grasp $18.8 billion and Under Armour had a much smaller piece of the pie, at $3.9 billion globally. In reviewing these numbers, it looks like Under Armour is really subpar to the industry giants, but this is not exactly the case. Under Armour in the past couple of

When our professor first presented this project paper to us my mind began to wonder. What is a good company to research and present it to my fellow classmates. My first selection was “Chik-fil-a”, but I wasn’t sure if we could write about fast food franchises. So I continued to brainstorm about a topic to expound on, even going as far as in asking my buddies and co-workers for suggestions. “Walmart”, “National Football League”, “National Basketball Association”, “Nationwide Insurance”, and “LG” were a few ideas that were presented to me. A few of those sounded ok but none really grasp my attention. As I was visiting an outlet mall, I came across Nike store. “Wow that’s going to by my topic of choice”, is what I told myself. Week

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 “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. “Under Armour will need to find a

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

Other clothing brands have the ability to start manufacturing athletic apparel to take away market share and diversify their portfolio. Thus, existing apparel companies could enter the performance apparel market if they decide to invest capital for advertising and building product demand. Under Armour has weak patent protection over its product; hence, there is a threat of different unexpected entrants who want to reiterate on their proven formula. Overall, the threat is less imperative to their continued success since other issues are more pertinent and likely.

In the documentary we watched in class "The Naked Brand", Under Armor was one of the company's mentioned. Under Armour came out with a new Green Line of clothes centered around helping the environment. This new line of athletic clothes is made from recycled materials such as plastic water bottles. One important part of Under Amour's company is their sustainability. According to their Mission statement, "At Under Armour, we see environmental and social sustainability as a journey". Another example of an imitative Under Armour took to help the Environment was join the Sustainable Apparel Coalition. In which helps "apparel, footwear, and textiles industry that produces no unnecessary environmental harm and has a positive impact on the people and communities associated with its activities". Companies like Under Armour produce large quantities of apparel so going green and helping the environment is a very proactive way to reach consumers, because who doesn’t want to help the environment?

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

Under Armour Inc. is the fourth biggest manufacturer in the consumer apparel industry. Under Armour Inc. stock price has dropped nearly 30 percent in the past year. They represent more than 4.45 percent of the total market share. Despite the decline in stock price, Under Armour Inc. continues to grow. This fluctuation in stock price has caused us to take a deeper look at their financial statements. In doing so, we decided to do a financial ratio analysis. To have a better understanding of the industry and how Under Armour Inc. compares to the rest of the industry we will compare them to Columbia Sportwear Company.

As shown in Figure 2 of the Appendix, a Porter Five Force Analysis makes it clear that the overall rivalry within the athletic apparel industry is medium to high. Because Nike and Adidas already have a substantial amount of capital resources and other assets, Under Armour struggles against them to gain market share. 8Also, private labels of retailers and newer sports apparel companies could potentially pose a threat to Under Armour, but mostly due to the fact that Under Armour does not hold any fabric or process patents. This makes it extremely easy for any competitor to duplicate a product or process with no consequence. However, the threat of new entrants is not too troublesome within the industry because of the great capital cost required for branding, advertising, and meeting product demand. Furthermore, the sports apparel industry is in the maturity phase of the industry life cycle. This means that each company included in the oligopoly must

income they may buy more clothing, increasing sales for clothing manufacturers, wholesalers and retailers. However, recessions have the opposite effect. Sales for clothing may be significantly lower due to many clothes being luxury items. If this happen retailers are stuck with large amounts of inventory which they might have to sell at reduced prices. The demand for more clothes, changing materials and demand for price there outside factors playing a role. One consequence of the rapidly expanding worldwide system of trade flows in clothing is that individual companies are not only competing more and more intensely with one another but are also becoming more functionally integrated with one another across the globe. (Scott, 2006). The sports

Under Armour, Inc. is the frontier for innovation of athletic performance products that enable consumers, men women and youth, to maximize their potential throughout the duration of a game, practice, or workout. The company was founded by Kevin A. Plank in 1996 and is headquartered in Baltimore, Maryland. Under Armour develops and sells products in three primary categories, “In 2015, sales of apparel, footwear and accessories represented 71%, 17% and 9% of net revenues, respectively” (Under, 1). The remaining 3% of net revenues is generated through licensing arrangements. Sales are primarily driven by wholesale channels, but Under Armour “also generate net revenue from the sale of our products through our direct to consumer sales channel…and

As per the instructions, I believe that while I may not have the answers to what innovations are needed, I’m confident that the employees of Under Armour do, and it’s a matter of inspiring them to propose innovative ideas. Currently, their brand statement states “To make all athletes better through passion, science and the relentless pursuit of innovation.” Under Armour has shown substantial year on year growth in revenues, exceeding the growth in the global apparel market.

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.