Under Armour
Under Armour – Challenging Nike in Sports Apparel
Zenith Shrestha
000722986
Section 1 Under Armour has dominated the performance apparel market in recent years. They have used innovative technology and created a product that is high in quality and has gained a lot of customer support from its target industry. Their strategy of producing climate favorable, Athlete friendly, fitting sizes apparel made of moisture-wicking polyester-blend fabric ensuring high quality has been working to good effect as it has been dominating a performance apparel industry overcoming its rivals Nike and Addidas. So, their innovation and technology is their major strength. Similarly, products they introduced to the market are unique so they are going to enjoy the first mover advantage for quite a good time. This allows them to stay competitive in the industry. They have also been able to establish a very good brand image among customers. Their strategy of targeting athletes and active lifestyle has helped them to gain a lot of popularity among targeted customers. Apart from that its strength also lies on the athletic endorsements and players sponsorship. There are few weaknesses that Under Armour needs to consider. Most of the raw materials used by Under Armour are developed and manufactured by third parties. However, the company’s popularity is based on the innovation and uniqueness. So development of those materials through third party could be risky for Under Armour as they can be imitated. Similarly, when a product is unique, it has to be patented. Patents ensure protection over intellectual property. Absence of that is a weakness of the company. Weakness of Under Armour can also be pointed out by comparing its product line with its major competitors, Nike and Addidas. Nike and Addidas have huge product line. Where Under Armour provides just cleats and running shoes, Nike and Addidas provide many other accessories like soccer goalie gloves, shin guards, baseball hats etc.
Zenith Shrestha
000722986
Section 1 Under Armour has dominated the performance apparel market in recent years. They have used innovative technology and created a product that is high in quality and has gained a lot of customer support from its target industry. Their strategy of producing climate favorable, Athlete friendly, fitting sizes apparel made of moisture-wicking polyester-blend fabric ensuring high quality has been working to good effect as it has been dominating a performance apparel industry overcoming its rivals Nike and Addidas. So, their innovation and technology is their major strength. Similarly, products they introduced to the market are unique so they are going to enjoy the first mover advantage for quite a good time. This allows them to stay competitive in the industry. They have also been able to establish a very good brand image among customers. Their strategy of targeting athletes and active lifestyle has helped them to gain a lot of popularity among targeted customers. Apart from that its strength also lies on the athletic endorsements and players sponsorship. There are few weaknesses that Under Armour needs to consider. Most of the raw materials used by Under Armour are developed and manufactured by third parties. However, the company’s popularity is based on the innovation and uniqueness. So development of those materials through third party could be risky for Under Armour as they can be imitated. Similarly, when a product is unique, it has to be patented. Patents ensure protection over intellectual property. Absence of that is a weakness of the company. Weakness of Under Armour can also be pointed out by comparing its product line with its major competitors, Nike and Addidas. Nike and Addidas have huge product line. Where Under Armour provides just cleats and running shoes, Nike and Addidas provide many other accessories like soccer goalie gloves, shin guards, baseball hats etc.