Under Armour Case Analysis
Founded by Kevin Plank in 1996, as KP Sports and then later on renamed to Under Armour (logo as UA) has been profitable and well known since the time it was founded. Under Armour rapid growth in very short term has been due to maintaining a competitive advantage by always having top-notch products and adopting new strategies to compete with the rivals. Since 1996, company sales, profit, assets and equity have been increasing. Today Company is not only known in America but it is famous all over the world. Under Armour produces performance apparel for sports, training/fitness clothing and performance golf apparel. Firm’s Strategy:
Under Armour’s strategy and mission statement: “To make all athlete's better through science, passion, and relentless pursuit of innovation.” Based on the Under Armour strategy, Under Armour management have made sure that their product is the finest and best of all and their athletic apparels are moisture wicking fabrics which are suitable for every climate. Under Armour pursues a growth strategy to continue to broaden the company’s product offerings, target additional consumer segments and secure additional distribution of Under Armour products. The product line strategy consists of creating a diverse product line like in apparel by producing HeatGear, ColdGear and AllSeasonGear apparels, in footwear UA offers football, baseball, lacrosse, slides, basketball, running footwear, performance training footwear and hunting boots and UA also has a big line of accessories which includes gloves, socks, headwear, bags, knee-pads and custom-molded mouth guards. Under Armour marketing strategy includes entering into outfitting agreements with a variety of collegiate and professional sports teams, sponsoring an assortment of collegiate and professional sports events and selling Under Armour products directly to team equipment managers and to individual athletics. Management believed that having audiences see UA products being worn by athletes on the playing field helped the company establish authenticity of the Under Armour brand with consumers. Key Issues:
With all the strong competitors like Nike, Adidas and many more, UA have to become more geographically diverse to stay competitive in the business, try to get more deals for endorsement, gain control to outsource for the specialty fabric to decrease supplier bargaining and perform extensive research to stay on top of social and life style sporting.
Under Armour introduced the Catalyst T-shirt made from recycled water bottles Catalyst T-shirts were first introduced to 20,000 runners in the 2009 Baltimore Running Festival. Per Will Philips, Under Armour’s Manager of Green, due to new technology each shirt is made from four recycled bottles, which are cleaned and broken down into tiny plastic flakes. The new technology allows for better temperature regulation, moisture to transfer better throughout the shirt and improved protection from the sun. Phillips said: “For us, green is an innovation project. We see it as a way to build great new performance products with a lighter environmental impact at the same time.” Per Phillips consumers never asked the company to innovate an environmentally friendly apparel but management did cared about the Under Armour Green Collection and innovating the Catalyst T-shirt at the Baltimore Running Festival was the ideal place. Today UA sells about 30 green products which include polo shirts and shorts to hooded sweatshirts and baseball caps and has a good and better control on the technology and on the fabrics that is needed to expand its line of green products. Consumers:
Plank said. "The relentless pursuit of innovation is something that differentiates our company today." Since beginning, Under Armour focused has been on making athletics apparel and footwear better for consumers and by making T-shirts that wicks away sweat has been a...
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