March 25, 2013
History of the organization
Under Armour was founded in 1996 by Kevin Plank , a then 23-year old former special team’s captain of the University of Maryland football team. Plank initially began the business from his grandmother's basement in Washington, D.C. As a fullback at the University of Maryland , Plank got tired of having to change out of the sweat-soaked T-shirts worn under his jersey; however, he noticed that his compression shorts worn during practice stayed dry. This inspired him to make a T-shirt using moisture-wicking synthetic fabric. After graduating from the University of Maryland , Plank developed his first prototype of the shirt, which he gave to his Maryland teammates and friends who had gone on to play in the NFL . Plank soon perfected the design creating a revolutionary new T-shirt built from microfibers that wicked moisture and kept athletes cool, dry, and light. Major competing brands including Nike , Adidas and Reebok would soon follow in Plank's footsteps with their own version of Under Armour's moisture-wicking apparel. By the end of 1996, Under Armour had sold 500 Under Armour HeatGear shirts, generating $17,000.] In 1997, Plank had $100,000 in orders to fill and found a factory in Ohio to make the shirts. People began to take notice of the brand when a front page photo of USA Today featured Oakland Raiders quarterback Jeff George wearing an Under Armour mock turtleneck . Following that front page, Under Armour's first major sale came when an equipment manager from Georgia Tech asked Plank for 10 shirts. This deal opened the door to a contract with Arizona State University , North Carolina State and other Division I football teams. With positive reviews from players, word began to spread and orders began to increase. That same year, Under Armour launched with several new apparel lines including ColdGear, TurfGear, AllseasonGear, and StreetGear. Functions of management:
Strategic planning: In such a thriving industry, it is necessary to stand out, stay relevant, and have something that gives your company an advantage over your competition. Under Armour differentiates itself from other athletic apparel companies by using synthetic material in producing its clothing. Rather than the more traditional fabrics such as cotton, they were the first company to use synthetic material technology which helps keep athletes cool when the weather is warm and warm when the weather is cold. Even though other companies have tried to emulate this innovation, Under Armour was the first to introduce the product and remains the leader in the large, athletic apparel market. Kevin Plank, CEO for Under Armour, has said that although the company prides itself the synthetic technology, the brand has not yet built its defining produce and will continue to find new ways to differentiate itself from its competition. SWOT
Strengths-Being financially strong helps Under Armour deal with any problems ride any dip in profits and out perform their reals. A strong brand is an essential strength of Under Armour as it is recognized and expected. Under Armour’s distribution chain can be listed as one of their strengths and links to success. High net income. Offering wide range of casual apparel and sportswear. High profit to earnings ratio. Positives response from customers. Official outfitter of schools and universities teams. Weaknesses-Not reducing costs in the same way as their competitors means Under Armour is outlaying more of their profits having higher costs than competitors is a major weakness. Not having an effective marketing strategy seriously hampers the success of Under Armour. Online presence is vital for success these days and lack of one is limitation for Under Armour. Under armour’s limited product line is major weakness. Narrow focus. It is considered as male targeted brand. Opportunities-Looking at export opportunities is a way for Uunder Armour to raise...
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