Under Armour Case Study

In: Business and Management

Submitted By awanda
Words 2729
Pages 11
Andrew Wanda
Professor Joan Vilim
Strategic Management
Under Armour Case Study Under Armour was founded by Kevin Plank a former collegiate football player at University of Maryland. Being an athlete and having to wear heavy sweaty shirts from playing he came up with an idea for a fabric that is cooler and comfortable to the athlete. He had passed on a job opportunity out of college and decided to take his idea and sell t-shirts instead. From what started as just a t-shirt idea had grown quickly into a powerful brand name with unlimited possibilities of growth in a very big industry. Before it became Under Armour it was formally called KP Sports which was a subchapter S corporation. After this Plank was able to convince Kip Fulks to be a partner in this enterprise and when money got tight he would borrow from family to keep the idea alive. This whole operation took place inside Planks grandmother basement until enough funds were secured to take out a small loan to move the operation to an actual facility. Later on the two of them acquired another friend as a partner by the name of Ryan Wood. After this the business truly began to take off and was no longer considered a S corporation but a C corporation. It wasn’t until late 2005 the company changed its name to Under Armour and became a publicly traded company. Now Under Armour is involved in the development, marketing, and distribution of performance apparel, footwear, and accessories for men and women of all ages.
In the industry that Under Armour is in there poses a lot of threats because there is a lot of competition. The industry has low barriers to entry so anyone with an idea can enter it and take Wanda 2 away potential sales. On top of that there are already long established brands such as Nike and Adidas that have penetrated the market and have been building their…...

Similar Documents

Under Amour Case Study

...Under Armour: Using IMC to create a brand for this generation’s athletes. Question1. What promotional opportunities gave Under Armour its initial success? Answer. Under Armour achieved its initial success due to a couple of promotional elements found in Integrated Marketing Communication (IMC) which created a promotional mix and by also purchasing a patent for its product. The first of these promotional elements used by Under Armour during its early years is advertising. Under Armour first began advertising by word of mouth after photos had appeared in the USA today paper of an Oakland player football player wearing an Under Armour shirt. This created major publicity for Under Armour which then led to Under Armour purchasing a full page ad in ESPN The Magazine. This generated over $750,000 in sales and the apparel also appeared in movies such as “Any Given Sunday.” Under Armour became such a household name that Georgia Tech purchased 300 shirts for its entire team, which also enabled the company to become even more successful. Under Armour created a promotional mix which not only informed the perspective buyers about the benefits of the product, but also persuaded them to buy it and reminded them later about the benefit they received from using the product. The company had four main goals in mind (1) build a great product, which allowed them to expand beyond making shirts, but to create a complete line of apparel such as pants, short, outerwear etc. (2) tell a great......

Words: 694 - Pages: 3

Case Study of Under Armour

...Case Study Analysis of Under Armour Module: Lecturer: Submission Date: Word Count: Matriculation number: Contemporary Issues in Strategic Management Maurice Brunet 15th November 2013 2990 (max. 3.000) 40131612 1 Introduction Under Armour, founded in 1996 by former University of Maryland football player Kevin Plank, is an American sports apparel company with headquarter in Maryland, US. Kevin Plank had the idea of making a t-shirt that is able to enhance athletes’ performance by controlling the body’s temperature and acting like a second skin. In only 14 years, Plank has succeeded in building Under Armour into a worldwide operating company that offers a wide range of premium priced sport articles including performance apparel, footwear and accessories. As of 2010, Under Armour was able to generate sales revenue of $1.06 billion of which the majority comes from Canada and the United States. Under Armour’s vision is to become the world’s leading performance athletic apparel by pursuing the mission of making “… athletes better through passion, science, and the relentless pursuit of innovation” (Ireland et al., 2013, p.378). The following report provides an analysis of the company Under Armour based on information from Ireland et al. (2013) in Management of Strategy. The paper is divided in the following three parts: 1. Five Forces analysis of the sportswear industry 2. Value chain analysis of Under Armour 3. Under Armour’s generic strategy. 1 2 Five Forces......

Words: 3728 - Pages: 15

Under Armour

...UNDER ARMOUR: CASE ANALYSIS Under Armour is a company based in the United States, best known for its introduction of form-fitting, moisture-wicking clothing designed to be worn under sportswear. Founder Kevin Plank was a football player with the University of Maryland who got tired of having to change out of the sweat-soaked T-shirts he wore under his jersey. This was the inspiration to make a T-shirt using moisture-wicking fabric for athletic performance. The company is a supplier of a much wider range of sportswear and casual apparel. After creating and improving his first product he sold it to his first football team, Georgia Tech. After this the company expanded to include many NCAA football teams, several NFL teams and is starting to leak into other sports and other markets around the world. In 2008 it expanded with the footwear and accessory product lines. Under Armour’s current mission, vision and values provide direction both operationally and strategically for the company. Under Armour’s strategy is to outperforming its competitors and achieving superior profitability through actions to gain sales and market share via more performance features, more appealing design, better quality or wider product selection. The goal is to achieve the competitive on the basis of differentiation features, such as higher quality, wider product selection, and added performance, value added services, more attractive styling, and technological superiority. The Under Armour brand is......

Words: 2139 - Pages: 9

Under Armour

...Jake Phillips Case Study 1 Financial Reporting and Analysis Under Armour Inc. Under Armour is a sports clothing and accessories company. The company is a supplier of a wide range of sportswear and casual apparel mainly focusing on hi-tech sportswear for professional athletes. It has now broadened its horizons and Under Armour began offering footwear in 2006, it continues to expand its offerings. The company was founded on January 26, 1996 by Kevin Plank, a former University of Maryland special team’s captain for the university football team. Plank and co-founder Jordan Lindgren, also a former University of Maryland Football player, began their business from Plank's grandmother's basement in Washington, DC. Plank, who got tired of having to change out of the sweat-soaked T-shirts he wore under his jersey, noticed that his compression shorts stayed dry. This was the inspiration to make a T-shirt using moisture-wicking fabric for athletic performance. I chose Under Armour because as a former athlete I wore Under Armours’ apparel since about 2002. I have done some research on them before but I never actually went through the financials. Being from Maryland I thought it would be a good fit for me. From 2009- 2010 Total assets went up by nearly $130 million and equity went up by nearly $100 million. Net revenues increased by 24.2% or $207.5 million. Net income increased by almost $22 million. Under Armour’s Independent Auditor PricewaterhouseCoopers LLP......

Words: 692 - Pages: 3

Under Armour Case Study

...Under Armour Case Study Source: Hogan, 2013 Table of contents Detailed Timeline 3 Business and Corporate Level Planning 4 Brief Summary of the Company Situation in their Competitive Environment, Issues they Face and Clear Problem Statement to Analyze 6 Key Leadership 8 Types of innovation and Evidence of Entrepreneurship 10 Global Presence and Effects 11 Ethics - Examples of Social Consciousness/Corporate Social Responsibility 12 Responsible Wealth Creation 14 Engagement and Plan Alignment & Corporate Culture 15 Wild Card 16 Internal Analysis 17 External Analysis 20 SWOT Analysis 24 Recommendation 27 Bibliography 33 Appendix 37 Team Member Roles 46 Detailed Timeline It all started in 1995 when Kevin Plank, the special teams captain on the University of Maryland football team, noticed that the cotton T-shirts he and his teammates wore underneath their pads were always soaked and filled with sweat (Under Armour, 2012). “There has to be something better,” he believed (Under Armour, 2012). That statement soon launched the performance apparel industry (Under Armour, 2012). That statement also became Under Armour’s generic strategy, which was to develop a better product than there was in the market. While Plank was perfecting his t-shirt after he graduated, he needed funds to launch his apparel line, so he maxed out his credit cards to the tune of $40,000 and set up a company in his grandmother’s basement in Washington, DC (Under Armour, 2012).......

Words: 12862 - Pages: 52

Under Armour

...Academia logo redesign 2015 LOG IN SIGN UP Case Study 2, Under Armour's Strategy Nicola Hudson UPLOADED BY Nicola Hudson TRENDING top 1% VIEWS 1,786 DOWNLOAD Case Study 2, Under Armour’s Strategy Under Armour is an emerging company in the sports apparel industry whose mission is to “Make all athletes better through passion, science and the rel entless pursuit of innovation” . Under Armour was a disruptive innovator in the sports apparel industry by creating sports apparel using synthetic materials as an alternative to natural fibers, such as cotton. This important change in material resulted in a “shirt that provided compress ion and wicked perspiration off your skin rather than absorb it…that worked with your body to regulate temperature and enhance performance” . This promise to increase athletic performance differentiated it from competing sports apparel companies, but rivals have since implemented synthetic materials into their product lines. This case study seeks to analyze Under Armour ’s history, resources, capabilities, and core competencies, business and corporate-level strategies, as well as the general environment and competitive landscape. After careful inspection of these varying areas, the factors contributing to Under Armour’s current success and future challenges will become clearer. The conception for Under Armour began over a year ago when CEO Kevin Plank played on the University of Maryland football team. Frustrated......

Words: 810 - Pages: 4

Under Armour Case

...Global Operations and Policy Under Armour’s Strategy in 2014 1. Describe the major components of the company’s strategy in the following areas: a. Product Line - Under Armour’s product line consists of apparel, footwear, accessories, and licensing. Under the apparel section, the company designed three lines of apparel gear: HeatGear, ColdGear, and AllSeasonGear. HeatGear was designed to be worn under equipment in warm to hot temperatures. It was engineered to make the body stay cool, dry and light. To satisfy all consumers, Under Armour offered their HeatGear in a variety of tops and bottoms as well as in a variety of colors. To satisfy those consumers who participate in sports or recreational activity in cold weather, Under Armour designed ColdGear. ColdGear provided warmth and dryness to the body while wicking away moisture. ColdGear could be worn under a uniform or jersey, and it could also be worn as an outerwear. Lastly, Under Armour designed the AllSeasonGear for those who play in changing temperatures. AllSeasonGear kept the wearer cool and dry in warmer temperature while keeping them warm in colder temperature. In 2006, Under Armour began marketing footwear products to men, women, and youth. They offered footwear for sports such as football, basketball, soccer, lacrosse, softball, and many more. Their footwear was designed to provide cushion, stabilization, comfort, control, and moisture management. In 2013, Under Armour’s accessory line......

Words: 2132 - Pages: 9

Under Armour Case Study

...Lindsey Professor Chewens Under Armour Case Study Under Armour is an American sports clothing and accessories company that is headquarted in Baltimore, Maryland. Their mission is to make athletes better and they have stayed true to this mission. They center their brand on the authentic performance category and are constantly in the pursuit of innovation in mobility, temperature regulation, and comfort enhancement. The company’s heavy investment in product research and development has led to their desired results of innovation in apparel and footwear. Their innovation and product differentiation has created a competitive advantage. They are currently on top of the industry when it comes to high quality and comfort. Under Armour offers three variations of its appareal for different weather conditions. They offer HeatGear for hot weather, ColdGear for cold weather, and AllSeasonGear for mild weather conditions. Within these three gearlines there are three primary fit types: compression, fitted and loose. Under Armour’s success has resulted mainly from its sports marketing strategy through sponsorship of well-known, admired professional athletes such as Tom Brady and Stephen Curry. Under Armour has also strategically scored sport team’s sponsorship of many NCAA Division I Universities. This exposure has directly influenced the performance of the company in the market. Nike is the most dominating player in the athletic apparel industry, surpassing Under Armour and Adidas......

Words: 737 - Pages: 3

Under Armour Case Study

...Case Study: Under Armour 1. How strong are the competitive forces confronting Under Armour, Nike, and The adidas Group? Do a five- forces analysis to support your answer. 
 The analysis of the Porters five forces are very important to business entities. Based on the analysis a business can evaluate their current position and positions that they plan to progress towards as it relates to the industry they are operating in. The following is my five forces analysis of the competitive forces confronting the companies that operate in the industry that Under Amour, Nike and Adidas operate in. Competitive Rivalry: There are many companies in the sports apparel, footwear and accessories industry, such as Nike, Adidas, Puma, Champion, New Balance etc. just to name a few. Many of the company’s competing in the industry offer a wide variety of similar products and each is trying to establish its brand as the brand for customers to commit their money and loyalty towards. What is obvious right away is that Nike and Adidas are Under Amour’s two biggest competitors and they have the highest percentage of market share. All three companies are established, have good resources, strong finances, sound marketing plans and popular celebrities that they can use to endorse their products. Therefore I think it’s safe to say that competitive rivalry in the industry is pretty strong. Supplier Power: The supplier power in the industry is low because there are many......

Words: 1961 - Pages: 8

Armour Garments Case Study

...Flores, Jireh Micah H. 29 April 2016 Linayao, Jacklyn Care A. FRM 171 H-1L Magno, Mary Angela Sariga, Deborah Keren A. Case Study: Armour Garments Company I. Time Context The Time context of the case was during the year of 1975 when the Armour Garments Company (AGC) is facing stiff competition and financial difficulties. The officers of the company considered liquidation of their business and see if they’ll still be able to continue managing the business. II. Point of View The case will be analyzed from the point of view of the owners of AGC. III. Problem/s identified A. Production * Sewing machines could not be utilized to manufacture other type of garments and because of this the company cannot venture other commodities such as jeans and polo shirts. B. Competition * Other undershirt factories started to open (threat of new entrants *Porter’s five forces) * Its serious threat was the operations in the Divisoria middlemen * The disloyalty of the Middlemen when it comes to lower cost ad longer credit terms in products. * Its sales did not increase nor decrease because of the growth population. The management ignore this and became relax because they still earn the profit. * There was no investment in the company. C. “Blossom” Brand * In 1971, the demand for undershirts went low due to the change of fashion trends. * More factories rise and were more willing to negotiate...

Words: 467 - Pages: 2

Under Armour Case Study

...Under Armour’s Strategy Case Analysis 1. How strong are the competitive forces confronting Under Armour, Nike, and The Adidas Group? Provide a five-forces analysis to support your answer. The competitive forces confronting Under Armour, Nike, and the Adidas Group are very strong. There are many other companies who offer similar sportswear and gear lie these three groups. A consumer has a wide variety of merchandise available to choose from, and the price to pick one brand over another costs the customer very little. All the competitors have allowed the market to be saturated with similar merchandise without much differentiation in products. The companies have an equal economic capability and economy of scale as Under Armour, Nike, and Adidas Group which allows them to remain equally competitive. The competitive pressure coming from new entrants into the sportswear apparel industry is relatively high. Active lifestyles are promoted heavily and customer demand for athletic products are high which means newcomers can expect to earn exponential profits. If a company has the resources to enter the market, then they could become a formidable competitor. The competitive pressure coming from firms offering substitute products is very high. Substitutes are often attractive to consumers because they are readily available for a nice price. Consumers often become used to buying substitutes because they suffer very low cost when switching products. Competitive......

Words: 1195 - Pages: 5

Under Armour

...______________________________________________________________________________ Under Armour Enters the Basketball Shoe Market ______________________________________________________________________________ This case was written by Professors George E. Belch and Michael A. Belch. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources. Company Background Under Armour (UA) was founded in 1996 by Kevin Plank, a former Maryland football player, who began by selling compression clothing that could “wick” sweat away from the body to college sports teams out of the trunk of his car. Plank was a football player at the University of Maryland, and hated wearing cotton shirts to practice in the hot, humid Maryland climate. Knowing that he would never be an NFL player, Plank devoted his efforts to starting a company that could make a product that would be an improvement over cotton, in that it would not absorb sweat and be much more functional and comfortable to wear. Once made, he started selling the shirts to the lacrosse and football teams at the University of Maryland out of the trunk of his car. In 1998, the football oriented movie “Any Given Sunday” was being filmed in Baltimore where Under Armour is based. The producers of the movie were looking for a product that......

Words: 3530 - Pages: 15

Under Armour Case Study

...Under Armour: Working to stay on Top of Its Game The following is an in-depth analysis of the company Under Armour. It has been one of the fastest growing productions, along with one of the top runners in the athletic apparel industry. The future of Under Armour remains unclear, but hopeful. There are many questions and issues that founder Kevin Plank and his executive leadership team must consider as the company moves forward; but analysts believe that the demand for Under Armour’s apparel products remain strong. Nike, Adidas, and Columbia Sportswear are all frontrunners against Under Armour in the industry. The first section of this report will cover an overview of the trends in, economics, political/legal, social/cultural-global, technology, and demographics. Economics Under Armour Company has been growing substantially. In 2008 its gross profit was $353,041, in 2009 it was $410,125, and in 2010 it only rose higher to $530,507. Its new income from operating expenses went up as well. In 2008 it was $38,229, in 2009 it was $46,758, and in 2010 it was $68,447. In North America and Canada, Under Armours net revenue in 2008 was $692,388, in 2009 it was $808,020, and in 2010 $997,816. In foreign countries it inclines as well. In 2008 Under Armours net revenue was $32,856, in 2009 it was $48, 391, and in 2010 it was $66,111. If the company follows this trend its profits are simply going to rise. Political/Legal The political and legal environment of Under Armour is......

Words: 1832 - Pages: 8

Under Armour Case Study

...Under Armour is a leading developer, marketer, and distributor of branded performance apparel, footwear, and accessories. Former University of Maryland football player Kevin Plank founded the company in 1996. The company sells the product worldwide. Athletes at all levels, from youth to professional, from playing fields around the world wear this product. The Under Armour global headquarters is in Baltimore, Massachusetts. There are also European headquarters in Amsterdam’s Olympic Stadium, and additional offices in Denver, Hong Kong, Toronto, and Guangzhou, China. Kevin Plank began the business with savings and credit cards in the basement of his grandmother’s apartment. Now, the Under Armour is a business that has their products flying off the display racks. The defining moment for the novice company came in December 1999, with the release of Oliver Stone’s film Any Given Sunday. The film featured Under Armour throughout its duration, but the pivotal exposure scene was the locker-room scene with Jamie Foxx and Cameron Diaz. Oliver Stone wanted Jamie Foxx to wear a futuristic-looking jockstrap. Kevin made sure that the logo “UA” was front and center. The company only had 19 employees at the time. Now the employee number has reached 2,200 and the sales now exceed $700 million. As the performance apparel market grew, Under Armour diversified their product offerings, developed different types of performance gear, and ventured into women’s apparel, footwear, and other......

Words: 2215 - Pages: 9

Under Armour

...Under Armour (Case 1) The following is an environment analysis of the ‘clothing’ business sector of the Performance Apparel Industry, with an analysis on Under Armour, a growing company headquartered in Baltimore, Maryland. The Future of Under Armour is unforeseen but we know that Under Armour wants to be number one in the industry above all competitors. Nike and Adidas will always strive to be the leaders but is our products truly better than theirs? The first section of this report will consist of an overview of the trends in technology, demographics, economics, political/legal and finally social/cultural. Political/Legal There is not too much content that Under Armour must worry about in this section. They just need to stay in the realms of regular business and legally obtain the correct patients so that no other competitors steal valued material. This actually makes their products perform better than other competitors. Politically Under Armour needs to promote good and safe work habits. They do not want a negative view like Nike obtained after they were seen utilizing sweatshops to make a deeper profit in the Industry. Even if a few customers find out they are using bad practices, then it shatters the whole reputation and brand image. Socio-cultural and Global Under Armour and other competitors can and have been using a global image to win the customers over. It is very important that Under Armour utilizes the global image of their quality product, for instance,......

Words: 1352 - Pages: 6