Under Armour: Rise of an Athletic Apparel Powerhouse

Under Armour was founded in 1996 by 23-year-old Kevin A. Plank. As a walk on football player for the University of Maryland, he designed what would become the products of one of the top selling athletic apparel companies today. The tight compression shirt would wick away sweat and keep the athlete cooler and dryer than the cotton t-shirts they were currently wearing. The company headquartered in Baltimore, Maryland went public in 2005. Under Amour focuses on “three major categories; apparel, footwear, and accessories”. (Wheelan, 20-4) The first two quarters on 2010 saw an increase in sales in all categories excluding footwear, which dropped in both quarters, showing footwear to be Under Armour’s weak link. The loss of income reported in

Kevin A. Plank founded the company and retains controlling interest of the public company. The mission and vision are born from his desire to compete in a global marketplace. Ninety-four percent of all sales are reported in the United States and Canada, the current strategy to “act like a global citizen, encourage the diverse multi-cultural energy and global ambition of the brand” (Under Armour, Inc) is headed by International Marketing Manager and Executive Vice President J. Scott

Entry barriers are low in the apparel industry, there are many companies currently operating in the sporting apparel, footwear, and accessory marketplace. Nike, Adidas, and Champion are considered the biggest competitors for Under Armour. The offshoring and outsourcing creates a unique situation for the Under Armour product line ordering and distribution. To ensure the products are properly stocked Under Armour must have the products manufactured prior to the orders being placed by distributors. On the positive side, the distributors power is high. The products can be found in company stores as well as retail chains, Dick’s Sporting Goods is a major distributor for the Under Armour product. In addition, the buyers power and the threat of substitution is low. The materials greatest competitor is cotton which holds moisture, in opposition to the synthetic material that wicks away sweat. The technology and materials needed to create the synthetic material can be sourced worldwide creating an ease of buying