Understanding Under Armour
Under Armour, established in 1996, has emerged as a major player in the athletic market, competing with industry giants Nike and Adidas. The company is renowned for its premium-quality products, encompassing apparel, footwear, accessories, and equipment, which are backed by strong branding, celebrity endorsements, and tactful product placements (Cascade).
Introduction to Under Armour
Under Armour’s journey began in 1996 when Kevin Plank, a former college football player, founded the company with the aim of creating performance-enhancing athletic gear. The company quickly gained recognition for its innovative moisture-wicking fabric technology, which revolutionized the athletic apparel industry. Under Armour’s commitment to providing athletes with products that improve their performance has been a driving force behind the company’s success.
Under Armour’s Purpose and Mission
Under Armour’s purpose is clear-cut: to “Empower Those Who Strive For More.” The company is dedicated to enhancing the performance of athletes at all levels and individuals with active lifestyles (Cascade). By developing cutting-edge products and leveraging the latest technology, Under Armour aims to equip athletes with the tools they need to push their boundaries and achieve their goals.
Under Armour’s mission extends beyond just creating athletic gear. The company strives to inspire and uplift individuals, fostering a sense of empowerment and motivation. Through its products, Under Armour seeks to instill confidence and drive in athletes, helping them overcome challenges and reach new heights in their respective fields.
With a strong focus on innovation, performance, and empowerment, Under Armour has managed to achieve remarkable success within a relatively short period. The company reached $1 billion in sales within 14 years of its inception, solidifying its position as a leader in the athletic apparel industry (Cascade).
To delve deeper into Under Armour’s strengths, weaknesses, opportunities, and threats, explore our article on the SWOT Analysis of Under Armour.
SWOT Analysis of Under Armour
When analyzing the position of Under Armour in the sportswear industry, it is essential to conduct a SWOT analysis, taking into account its strengths, weaknesses, opportunities, and threats.
Strengths of Under Armour
Under Armour boasts several strengths that contribute to its success in the market. Firstly, the brand is known for its premium-quality products, including apparel, footwear, accessories, and equipment. This emphasis on quality has helped Under Armour establish itself as a trusted name in the industry. Additionally, Under Armour’s strong branding, which includes celebrity endorsements and strategic product placements, has played a crucial role in enhancing its reputation and visibility among consumers.
Under Armour also possesses a clear-cut purpose, which is to “Empower Those Who Strive For More” (Cascade). This purpose resonates with athletes at all levels and individuals with active lifestyles, creating a strong emotional connection with its target audience. Furthermore, Under Armour’s commitment to technological innovation has allowed the brand to develop cutting-edge products that cater to the evolving needs of athletes and fitness enthusiasts.
Weaknesses of Under Armour
While Under Armour has experienced significant success, it is not without its weaknesses. One of the notable weaknesses is the brand’s reliance on North American markets, which limits its global presence. Expanding into international markets remains a challenge for Under Armour, and this narrow geographic focus could hinder its growth potential.
Another weakness of Under Armour is its relatively higher pricing compared to some of its competitors. This pricing strategy may make Under Armour products less accessible to price-sensitive consumers, potentially impacting its market share.
Opportunities for Under Armour
Under Armour has several opportunities for growth and expansion. One key opportunity lies in diversifying its product offerings further. By exploring new product categories or expanding into related markets, such as athleisure or sports accessories, Under Armour can tap into new customer segments and increase its revenue streams.
Furthermore, Under Armour has the potential to leverage its digital presence and capitalize on the growing trend of e-commerce. By enhancing its online platforms and investing in digital marketing strategies, Under Armour can reach a wider audience, including those who prefer online shopping.
Threats to Under Armour
While Under Armour has established a strong position in the sportswear industry, it faces various threats that could impact its performance. One significant threat is intense competition from established brands like Nike and Adidas, who have a larger market share and greater global reach. These competitors have extensive resources and brand recognition, making it challenging for Under Armour to compete on a global scale.
Another threat is the continuously changing consumer preferences and trends in the sportswear industry. To remain relevant and competitive, Under Armour must stay attuned to these shifts and adapt its product offerings accordingly.
By understanding its strengths, weaknesses, opportunities, and threats, Under Armour can develop effective strategies to leverage its advantages, address its weaknesses, capitalize on opportunities, and mitigate potential threats. This analysis provides valuable insights into the brand’s current position and helps guide decision-making processes to maintain its competitive edge in the market.
Under Armour’s Financial Performance
Analyzing the financial performance of Under Armour provides valuable insights into the company’s growth and profitability. This section will focus on two key aspects: revenue growth and net income.
Revenue Growth of Under Armour
Under Armour has experienced consistent revenue growth over the years. From 2014 to 2018, the company’s revenue increased from $4.8 billion to $5.2 billion, representing a compound annual growth rate (CAGR) of 1.9% (Source). This growth demonstrates Under Armour’s ability to capture market share and increase its sales volume.
| Year | Revenue (in billions) |
|---|---|
| 2014 | 4.8 |
| 2015 | 5.2 |
Figure courtesy Source
However, it is worth noting that the rate of revenue growth has slowed down in recent years. To sustain its position and increase market share, Under Armour needs to focus on innovative strategies and effective marketing techniques. For an in-depth analysis of Under Armour’s business strategy, refer to our article on under armour marketing strategy.
Net Income of Under Armour
While Under Armour has experienced revenue growth, its net income has faced challenges. In 2017, the company reported a net income of $233 million, but in 2018, it incurred a net loss of $46 million (Source). This decline in net income highlights the need for Under Armour to address certain factors impacting its profitability.
| Year | Net Income (in millions) |
|---|---|
| 2017 | 233 |
| 2018 | -46 |
Figure courtesy Source
To improve its financial performance, Under Armour must identify and address the underlying weaknesses in its operations. For a comprehensive analysis of the company’s weaknesses, refer to our article on under armour weaknesses.
By closely monitoring revenue growth and net income, Under Armour can make informed decisions to enhance its financial performance and maintain a strong position in the sportswear industry. Understanding these key financial indicators is crucial for evaluating the company’s overall health and prospects for future success.
Under Armour’s Competitive Landscape
In the highly competitive sportswear industry, Under Armour faces strong competition from global giants such as Nike and Adidas, as well as emerging startups and local brands. This intense competition poses challenges and opportunities for Under Armour as it strives to maintain and grow its market share.
Competitors of Under Armour
Under Armour’s main competitors include Nike and Adidas, both of which have established themselves as dominant players in the sportswear market. These companies have strong brand recognition, extensive product lines, and significant marketing budgets. Under Armour also faces competition from other sportswear brands such as Puma, Reebok, and New Balance, as well as local brands and emerging startups.
To stay competitive in this landscape, Under Armour must continuously innovate and differentiate itself from its rivals. By understanding consumer needs and preferences, Under Armour can develop products and marketing strategies that resonate with its target market.
Differentiation Strategies
To stand out in a crowded marketplace, Under Armour employs various differentiation strategies. One of its key differentiators is its focus on performance-enhancing apparel and footwear. Under Armour designs its products to meet the specific needs of athletes and fitness enthusiasts, providing them with the tools to perform at their best. This focus on performance has helped Under Armour build a strong reputation among athletes.
Additionally, Under Armour has embraced digital innovation and transformed itself from solely an apparel and footwear company to a tech company. It has made strategic acquisitions and formed partnerships to build the world’s largest digital fitness and health community. This digital presence allows Under Armour to connect with customers on a deeper level and provide personalized experiences.
By combining performance-focused products with digital innovation, Under Armour sets itself apart from its competitors. The company’s ability to adapt to changing consumer trends and embrace new technologies strengthens its position in the market.
In summary, Under Armour operates in a highly competitive landscape, facing rivals such as Nike and Adidas. To differentiate itself, Under Armour focuses on performance-enhancing products and digital innovation. By leveraging these strategies, Under Armour aims to attract and retain its target market of athletes and fitness enthusiasts while expanding its reach to the broader population that values sportswear for fashion and comfort.
Under Armour’s Strategic Initiatives
Under Armour, a prominent sportswear company, has implemented various strategic initiatives to drive its growth and success. Let’s explore three key strategic initiatives undertaken by Under Armour: the transformation and recentering strategy, growth platforms, and sustainability and environmental goals.
Transformation and Recentering Strategy
Under Armour is currently undergoing a multi-year transformation, focusing on recentering their strategy, operations, and financial discipline. This strategic initiative aims to strengthen the brand and deliver higher-quality revenue while prioritizing top-line growth.
By recentering their strategy, Under Armour is aligning its efforts and resources to optimize business performance and enhance its competitiveness in the sportswear market. This includes refining product offerings, streamlining operations, and improving financial management.
Through this transformation, Under Armour aims to position itself for sustainable long-term growth and profitability, catering to evolving customer needs and market dynamics. The company’s commitment to strategic reevaluation reflects its dedication to maintaining a strong market presence and further expanding its global footprint.
Growth Platforms of Under Armour
Under Armour’s growth strategy is anchored in five key platforms:
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Direct-to-Consumer: Under Armour is leveraging its direct-to-consumer channel to strengthen customer relationships and increase brand loyalty. By enhancing its e-commerce capabilities and expanding its brick-and-mortar presence, the company aims to create a seamless shopping experience for consumers, driving sales growth (Under Armour).
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Footwear: Under Armour has identified footwear as a significant growth opportunity. The company continues to invest in research, design, and innovation to develop high-performance athletic footwear that meets the needs of athletes and sports enthusiasts. By expanding its footwear offerings, Under Armour aims to capture a larger share of the global footwear market.
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Women’s Lines: Recognizing the importance of the women’s sportswear market, Under Armour has been actively expanding its women’s lines. The company focuses on designing and marketing apparel and accessories that cater to the specific needs and preferences of female athletes and fitness enthusiasts. By targeting this segment, Under Armour aims to drive growth and build brand loyalty among women.
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International Businesses: Under Armour has been expanding its international presence by entering new markets and strengthening its existing operations. The company is focused on increasing brand awareness and market penetration in key regions across the globe. By tailoring its product offerings to meet local preferences and investing in marketing and distribution channels, Under Armour aims to capture market share and drive international growth.
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Sustainability: Under Armour is committed to sustainability and has set ambitious environmental goals. The company is building a new global headquarters in Baltimore designed to be environmentally friendly. Under Armour aims to use 80% renewable energy by 2025 and achieve a 30% reduction in greenhouse gas emissions by 2030. By integrating sustainability into its business practices, Under Armour strives to create a positive impact on the environment and align with the growing consumer demand for sustainable products (Under Armour).
Sustainability and Environmental Goals
Under Armour recognizes the importance of environmental responsibility and has set specific goals to drive sustainability. The company aims to use 80% renewable energy by 2025 and reduce greenhouse gas emissions by 30% by 2030. By implementing renewable energy sources and adopting energy-efficient practices, Under Armour is actively working towards mitigating its environmental impact and promoting a greener future (Under Armour).
Under Armour’s commitment to sustainability extends beyond reducing its environmental footprint. The company focuses on responsible sourcing, ethical manufacturing practices, and social initiatives to create a positive impact on the communities it operates in. By integrating sustainability into its core business practices, Under Armour aims to be a leader in the sportswear industry, driving change and inspiring others to adopt more sustainable practices.
Through these strategic initiatives, Under Armour aims to strengthen its brand, drive growth, and contribute to a more sustainable future. By focusing on transformation, growth platforms, and sustainability, Under Armour positions itself to thrive in the competitive sportswear market and meet the evolving needs of its customers.
Leadership and Management Changes
In the ever-evolving world of business, leadership and management changes can significantly impact the trajectory of a company. Under Armour, the renowned sportswear company, has recently undergone notable leadership changes, bringing fresh perspectives and expertise to the organization.
Appointment of Kevin Ross
Under Armour recently announced the appointment of Kevin Ross as the new Senior Vice President and Managing Director of Europe, Middle East & Africa. With nearly 20 years of experience in growing high-profile brands, Ross brings a wealth of knowledge and strategic acumen to the company.
As the Senior Vice President and Managing Director of Europe, Middle East & Africa, Ross will play a key role in driving Under Armour’s growth and expansion in these regions. His expertise in brand development, market expansion, and strategic planning will be instrumental in establishing and strengthening Under Armour’s presence in these markets.
Impact of New Leadership
The appointment of Kevin Ross signifies Under Armour’s commitment to charting a path forward and driving growth in key markets. With his extensive experience and expertise, Ross is well-positioned to spearhead the company’s initiatives and bring new perspectives to the table.
New leadership can have a profound impact on a company’s strategic direction and overall performance. Ross’s appointment is expected to bring fresh energy and innovative ideas to Under Armour, enabling the company to navigate the competitive sportswear landscape and capitalize on emerging opportunities.
Under Armour’s leadership changes demonstrate the company’s dedication to evolving and adapting to meet the needs of its customers and the demands of the market. The strategic vision and guidance provided by new leaders can shape the company’s business strategies, marketing initiatives, and overall organizational culture.
By leveraging the strengths of its leadership team, Under Armour aims to strengthen its position in the sportswear industry, overcome weaknesses, and seize opportunities for growth. These changes reflect the company’s commitment to continuously improving and delivering high-quality products and experiences to its customers.
For more insights into Under Armour’s business strategy, strengths, weaknesses, and marketing initiatives, explore our articles on under armour marketing strategy, under armour strengths, and under armour weaknesses.
Target Market of Under Armour
To fully understand Under Armour’s business strategy and assess its strengths and weaknesses, it is important to delve into its target market. Under Armour primarily caters to athletes and fitness enthusiasts who prioritize high-performance sportswear. However, the company also appeals to the general population who value sportswear for fashion and comfort.
Under Armour’s Primary Customers
Under Armour’s primary customers are athletes and fitness enthusiasts who demand sportswear that can enhance their performance and provide comfort during physical activities. These customers include professional athletes, amateur athletes, and individuals who engage in regular exercise and sports. Under Armour aims to empower these individuals by providing them with technologically advanced apparel, footwear, and accessories that support their active lifestyles.
Additionally, Under Armour has successfully tapped into the market of individuals who appreciate sportswear for its fashion and comfort aspects. By blending style with performance, the brand appeals to a broader audience, including those who may not engage in intense physical activities but still appreciate the aesthetics and functionality of sportswear.
Market Segmentation of Under Armour
Under Armour’s target market can be further segmented based on various factors, including demographics, psychographics, and behavior. Some key segments include:
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Athletes and Performance-focused Individuals: This segment comprises professional athletes, serious athletes, and individuals who prioritize sports and fitness in their lives. Under Armour offers high-performance apparel, footwear, and accessories tailored to the specific needs of this segment. These products are designed to enhance performance and provide comfort during intense physical activities.
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Fashion-conscious Consumers: This segment includes individuals who value sportswear for its style and fashion appeal. Under Armour’s innovative designs and collaborations with fashion influencers make it an attractive choice for those who want to make a fashion statement while maintaining a sporty and active lifestyle.
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Fitness Enthusiasts: This segment consists of individuals who engage in regular fitness activities for health and well-being. Under Armour provides fitness apparel and accessories that cater to the needs of this segment, focusing on comfort, functionality, and durability.
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Youth and Millennials: Under Armour has a strong presence among the younger demographic, including youth and millennials. The brand’s innovative products, celebrity endorsements, and marketing strategies resonate well with this tech-savvy and socially conscious segment.
By strategically targeting these market segments, Under Armour has been able to establish a strong foothold in the sportswear industry. Its ability to cater to the diverse needs and preferences of its target market has contributed to its success as a global sportswear company.
To learn more about Under Armour’s marketing strategy and its approach to reaching its target market, check out our article on under armour marketing strategy.
In the next sections, we will explore the brand image of Under Armour and the controversies it has faced, shedding light on how these factors influence its positioning in the market.
Brand Image and Controversies
When it comes to brand image, Under Armour has established itself as a prominent player in the sportswear industry. The company is widely recognized for its innovative products, cutting-edge technology, and association with high-performance sports. Under Armour has successfully built a strong brand image that resonates with athletes and fitness enthusiasts. Its products have been endorsed by numerous athletes and celebrities, further enhancing its credibility and appeal (Source).
Under Armour’s primary target market consists of athletes and fitness enthusiasts who value high-quality sportswear for both performance and style. However, the brand has also expanded its reach to cater to the general population seeking fashionable and comfortable sportswear options. By appealing to a diverse customer base, Under Armour has solidified its position as a leading sportswear company in the market (Source).
Despite its strong brand image, Under Armour has faced its share of controversies. These controversies have, at times, affected the company’s reputation and public perception. Some of the controversies have been related to its marketing practices, endorsements, and workplace culture. It is worth noting that these challenges have prompted Under Armour to take steps to address and rectify the issues, demonstrating its commitment to continuous improvement and accountability.
Managing controversies is an ongoing challenge for any brand. It is crucial for Under Armour to proactively address and resolve these issues to maintain its brand image and the trust of its customers. By implementing effective communication strategies, ethical business practices, and fostering a positive work environment, Under Armour can mitigate the impact of controversies and uphold its reputation as a trusted sportswear brand.
To learn more about Under Armour’s strengths, weaknesses, opportunities, and threats, refer to our article on the SWOT analysis of Under Armour. Understanding these factors can provide valuable insights into the company’s overall business strategy and market position.
