Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Strategic analysis of under armour
Strategic analysis of under armour
Under armour strategic direction
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Strategic analysis of under armour
Why Under Armour is on the Rise Under Armour is a company that produces athletic wear from baseball cleats to basketball shoes. Their mission is “to make all athletes better through Passion, Design and the Relentlessness pursuit of innovation (uabiz.com).” The company was founded in 1996 by former Maryland football player, Kevin Plank, in hopes that he would create clothing that kept athletes cool, dry, and light throughout the course of a game, practice, or workout. Under Armour came out with three different types of gear which included HeatGear, which is worn when it is hot, and ColdGear which is worn when it is cold, as well as AllSeasonGear that can be worn anytime. When “two-a-days” came around, which are two practices in one day, Plank …show more content…
He had been traveling up and down the East coast in hopes that he would find people that would want to buy his clothing. By the end of 1999, he had come up with a team and they got some clothing sold in a big team sale, and at that time Under Armour had generated about $17,000 dollars in sales. In 1998, he had created a new shirt which he called ColdGear, which kept athletes warm, dry, and light. Then in 1998, Plank moved out of his grandmother’s basement into Under Armour’s new headquarters in Baltimore, Maryland. Plank made the companies huge debut in the 1999 hit film, “Any Given Sunday”, in which the players wore the brand in key parts of the movie; After that, Plank took a monumental risk and bought ad space in a ESPN magazine to advertise the company. After putting their ad in the magazine, they earned a $750,000 increase in sales. In 2003, Under Armour took a big step and had their first T.V. commercial where the slogan Protect this House came from. Shortly after the commercial, the company officially released their women’s clothing line. Then in 2004 they came out with the boys and girls clothing line. In 2005 Under Armour introduced their amateur golf line, later that year the company signed with their first school, which was Kevin Planks alma mater, The University of Maryland. Since then, the company has been one of the top companies for …show more content…
In 2017 the company’s revenue increased by nine percent increasing it to 1.1 Billion dollars in earnings. 2005 is the last recorded document of revenue, and from 2005 to 2017 the company’s revenue has increased by 913 million. That is a phenomenal number growth in numbers. Under Armour signs a lot of athletes to sponsorship deals and that helps with the revenue of the company. When they make shoes in the name of an elite athlete, it brings in a huge money flow because everybody wants that shoe because they believe they will be cool if they wear the shoe. Stephen Curry is said to make Under Armour in the future around 28.2 billion dollars. Under Armour is on the rise to be the number one sports brand on the brand. The company is right behind Nike in sales and his is the verge of surpassing them in the next year or
Under Armour’s product is swim gear. They sell their product by doing what Adidas did, used motivation, emotion, and a message to connect with the audience. But, Under Armour used a famous celebrity named Michael Phelps. The audience starts to pay attention to the ad and either feels connected or wants to be a better athlete like Phelps. Under Armour finally manipulated their audience into buying their
My topic of choice was pretty tough. As I concluded my research on Under Armour, I can assure you that they have many areas to improve in to even be considered a major threat to Nike or Adidas. Their products are heading in the right direction, but more guidance is needed from senior correspondents that have more experience in the field of marketing and strategy. Under Armour revenues are increasing, but at the current pace, Nike will double their net gross in a year. Athletes and universities are contributing in branding Under Armour along with remaining loyal, but their apparel to me is not attractive. For starters, every major football team that I have noticed supporting them has very bland uniforms or very flashy uniforms. As the saying goes, “bad publicity is better than no publicity”; at least we are discussing them along side Nike and Adidas.
Under Armour provides innovatively designed performance products that incorporated a variety of technologically advanced fabrics and specialized manufacturing techniques, all in attempt to make the wearer feel “drier, lighter, and more comfortable.” This is Under Armour’s core competitive strength.
Overall, Under Armor did an outstanding job targeting young, aspiring athletes to do what they want to do with their life. They used logic to show how hard the athletes work along with emotion to show how serious they take their training. Finally, Under Armor used the credibility of the athletes to sell their new training shoe. This commercial will make anyone want to purchase a pair of shoes and workout themselves. Since the commercial is on such a serious level, viewers emotionally connect with it which makes Under Armor seem like the best brand
Under Armour and Nike are very close competitors in the athletic wear for sports and recreational use. Both Under Armour and Nike have goods and bads but at the end of the day Under Armour is a better company, with a better clothes line. Nike came out over thirty years before Under Armour, but Under Armour has by far surpassed Nike in popularity and style. In another thirty years when Under Armour has been out as long as Nike today, Under Armour will be more superior than Nike in the athletic field. Nike will eventually be over ran by nike and will be a small company like Adidas
Demand these days for athletic apparel and shoes are off the roof because of the health conscious culture. This trendy culture is all cross the world which brings a large profit for companies like Nike, Under Armor and etc. As the companies start to compete with celebrity sponsors or sports teams in this market naturally investors demand and stock prices increase.
They could overtake Adidas if they continue with their innovative strategy because they’re only $3.5 billion away. Since now-a-days consumers are all about technology and new innovative products, if Under Armour continues with their innovative strategy they will continue to see an increase of financial growth, become a major competitor for Adidas, and a closer competitor to Nike.
Under Armour is a leading athletic clothing line directed towards the overall athlete who is looking for the most comfort during extracurricular activities. The mission of the company is, "to provide the world with technically advanced products engineered with exclusive fabric construction, supreme moisture management, and proven innovation. In short, every Under Armour product is doing something for you; it's making you better."
Under Amour Company ventured into a market segment that was overcrowded, it had thousands of companies that competed against each other. Out of the many companies involved in the trade, the two most formidable threats seemed to be orchestrated by Nike and Adidas. These are two giant sports apparel and footwear, which pride themselves as having been long term veterans in the industry. Nike in particular was christened as the ultimate shoe and athletic apparel company with revenues of $18.6 billion, net income of $1.9 billion and more than thirty two thousand employees globally in the year 2008. This makes it the largest athletic shoe and apparel seller in the world. This company has seen major expansions in outlets throughout the world over the years. Adidas on its part has managed to build a powerful brand through its technological innovations and aggressive marketing where they spend up to thirteen per cent of their revenue besides offering high quality services. These scenarios seem to present Under Armour with a massive competitive disadvantage.
The sports apparel and accessories industry has a highly competitive market. Businesses are constantly competing for elite athletes to sponsor, raw materials, and every opportunity to expand. Under Armour is able to not only survive but thrive in this market because of their ability to think outside of the box. They are constantly creating new and exciting products that help athletes everywhere.
He made his first sale 12 months later to Georgia Tech amounting to $12,000 and the rest is all history with him now expanding his product line from footwear to woman’s clothing line Under Armour is now a force to be reckoned with.
Nike American Sportswear generated revenue of 7495 million US dollars in 2014, which was almost double of 2009 revenue of Nike Sportswear (Statista, 2015).The sales of (Athletic) Sportswear of Nike 90 million US dollars, however, the sale of Adidas Sportswear (Competitor of Nike) was 25 million US dollars, which was not even one third of Nike Sportswear sales (Statista, 2015).Nonetheless, the return on assets and equity are 13.41% and 26.43% respectively (Yahoo Finanace, 2015).
Nike’s focus for fashion forward women is the following: lead the athleisure trend, increase advertising, and the introduce the #BetterForIt social media campaign. We need to focus on the athleisure trend by increasing our portfolio for the women target market. Athleisure is already 20% of the firm’s revenue and we need to recognize that women are leading this fashion movement. Under Armor and Lululemon are already making headways in this fashion focused market. We need to emphasize our athletic technologies, promoting lighter fabrics and better performance, while still maintaining a level of comfort and fashionability. Increasing the portfolio means nothing if women don’t know we’ve done just that. Nike will need to increase advertising specifically with this target market in mind. The #BetterForIt campaign is one important aspect of these advertising efforts. Similar campaigns should promote and help “normalize” athletic wear in everyday
The Sporting Goods Manufacturers Association has projected that revenues from athletic footwear will grow at a rate of 5.1% (Wheelen, Hunger, Hoffman, & Bamford, 2015, 2012, 2010). Under Armour should target at least this 5% growth rate in its footwear segment
...ual Income Statement). Adidas has chosen not to make their advertising plans publicly known (How Much Money Does Adidas Spend on Advertising?).Under Armour is an up and coming company founded in 1996, their net income starting at 46.79 million and by 2013 ending with 162.17 million dollars (UA Annual Income Statement). Under Armour is focusing their advertising on internet marketing and mobile marketing, 6,500 dollars towards a mobile app and an overall advertising budget of 40,000 (Zoe Suffety).