Under Armour -- Industry Analysis Essay

990 Words Oct 22nd, 2013 4 Pages
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
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Analyst believe that Nike purposely targeted Under Armour by launching new basketball shoes at the same time Under Armour was attempting to introduce its first basketball footwear in 2010.
C. Competitor Analysis Nike is working to stay at the top as the number one footwear brand as well as the number one brand in all other areas of the athletic gear and they are doing so by advertising its brand through high-priced endorsement deals, media advertising, event sponsorship, partnerships and alliances. Adidas, combined with Reebok is the second largest athletic apparel manufacturer in the world. Adidas became the industry leader in soccer shoes and apparel when the German soccer team won the World Cup while wearing Adidas cleats in 1954. Columbia also found a niche when it introduced its breathable, waterproof fabrics in the 80s the company continues to grow through its innovative product development and acquisition. Columbia is now the top skiwear seller in the US, specializing in snowboard gear, hunting, fishing, hiking, camping and casual wear. 40 percent of Columbia’s sales came from outside of the US.
D. Under Armour has the potential and most importantly the resources (money, loyal customer/ athletes, sponsors) to move up in the industry and closer to becoming number one in the athletic apparel industry. 93 percent of UA sales were made in the U.S.

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