Under Armour -- Industry Analysis
September 2013
1. Situation analysis
A. General Environment
Sociocultural/Demographic – Under Armour was able to build its brand image through extensive sponsorship. Under Armour now provides gear to the NFL, MLB, MLS, NHL the USA baseball and Ski teams including other professional leagues abroad. In 2005, Under Armour was supplying over 100 NCAA division I-A football programs and 30 NFL teams. Only four years since its founding Under Armour had become a globally recognized brand, and was still looking for areas to branch into within the performance apparel industry and introduced a women’s and youth line.
Technological – Founder, Kevin Plank found a niche, an undershirt that could control the body temperature of the athlete and that would also enhance performance by keeping them cool, warm, dry when on the field. Under Armour uses synthetic, high tech fibers that provide temperature control comfort and flexibility. After it went public in 2006, Under Armour invested in a new SAP system which has allowed the company to add to its list of offerings.
Economic – Under Armour has had a continuing trend of increased sales in the third and fourth quarters of each year aligning with the football and basketball season as well as gift-giving season in the U.S. Some supplies used by UA are commodities, such as petroleum-based materials, and therefore are subject to potential price fluctuations.
Environmental/Geographic – approximately 94 percent of UA sales in 2010 were in North America with the remaining 6 percent split among international markets.
Political/Legal – N/A
B. Industry Analysis – Porter’s five force model.
Barriers to Entry
Barriers to entry in this market are relatively high, there are competitors that have been established for years and are still competing for endorsements and investing large amounts of money for product innovation. Under Armour was able to find a niche in the apparel sector of athlectic gear and through that gained plenty
1. Situation analysis
A. General Environment
Sociocultural/Demographic – Under Armour was able to build its brand image through extensive sponsorship. Under Armour now provides gear to the NFL, MLB, MLS, NHL the USA baseball and Ski teams including other professional leagues abroad. In 2005, Under Armour was supplying over 100 NCAA division I-A football programs and 30 NFL teams. Only four years since its founding Under Armour had become a globally recognized brand, and was still looking for areas to branch into within the performance apparel industry and introduced a women’s and youth line.
Technological – Founder, Kevin Plank found a niche, an undershirt that could control the body temperature of the athlete and that would also enhance performance by keeping them cool, warm, dry when on the field. Under Armour uses synthetic, high tech fibers that provide temperature control comfort and flexibility. After it went public in 2006, Under Armour invested in a new SAP system which has allowed the company to add to its list of offerings.
Economic – Under Armour has had a continuing trend of increased sales in the third and fourth quarters of each year aligning with the football and basketball season as well as gift-giving season in the U.S. Some supplies used by UA are commodities, such as petroleum-based materials, and therefore are subject to potential price fluctuations.
Environmental/Geographic – approximately 94 percent of UA sales in 2010 were in North America with the remaining 6 percent split among international markets.
Political/Legal – N/A
B. Industry Analysis – Porter’s five force model.
Barriers to Entry
Barriers to entry in this market are relatively high, there are competitors that have been established for years and are still competing for endorsements and investing large amounts of money for product innovation. Under Armour was able to find a niche in the apparel sector of athlectic gear and through that gained plenty