Under Armour

 Started in 1996 my former Univ. of Maryland football player Kevin Plank  Idea was to create a shirt that worked as well as compression apparel  First collegiate teams signed were Georgia Tech and Arizona State University  In 1997 added two new product line ColdGear and AllseasonGear  In 1998 Under Armour was featured in “Any Given Sunday” and “The Replacements”; caused an increase in sales  Went public in 2005 and has increased in value since then  In 2010 CEO Kevin Plank announced they reached the $1billion target in sales for the first time

 Vision: “To be the world’s #1 performance athletic brand.”  Mission: “To make all athletes better through passion, science and the relentless pursuit of innovation.”

 The popularity of sports has created an industry that will continue to prosper and will give consumers many reasons to purchase from preventive health care to ego  The Companies in the Performance apparel manufacturing industry have a great commitment to social responsibility. The companies have several different efforts to give back to the community they operate in. E-commerce is on the rise.

 Performance Enhancing Technology  The United’s States Sports Culture has caught attention around the globe  In 2010, US consumers spent about $337 billion on clothing and footwear  Elimination of Tariffs and Increase in Free Trade Agreements

 Vertical Integration  To combine additional stages of production  By gaining control of inputs and outputs  By controlling resources

 Revenues of $19,014,000  34,400 Employees  Occupies a large portion of the athletic shoe market  Will replace Reebok as the official brand for the National Football League

 Revenues 1,483,500  3,200 Employees  One of the United State’s biggest skiwear sellers and focuses on active outdoor wear  There are several opportunities for Columbia to expand in the global market. Columbia is also expected to continue product diversification through acquisitions.

 Revenues of 15,889,100  41,287 Employees  Whole sale athletic goods manufacturer, producing goods such as footwear, apparel and equipment for professional sports team and retail  Purchased Reebok in April of 2006  Global Presence

 Under Armour has a differentiation strategy  “moisture-wicking synthetic fabrications engineered in many designs and styles for wear in nearly every climate to provide a performance alternative to traditional natural fiber products.  Brand Loyalty

 Under Armour Inc. looks to Backward Vertical Integration  To increase control of its supply systems  Will allow UA to directly affect customers’ satisfaction  Under Armour Inc. looks to Forward Vertical Integration  To include control of the direct distribution of its products  Direct-to-customer relationship

 Current Rivalry: High, Nike, Adidas, Columbia Sportswear; others  Potential Entrants: Moderate, R&D costs discourage other organizations from entering.  Bargaining Power of Buyers: Low, due to market share.  Bargaining Power of Suppliers: High, due to fabric used.  Substitute Product and Services: High, competitors have mimic products.

 Current Ratio: 4.1  ROA:  ROE:  Net Profit Margin: 6.44  Increase in Profitability and Company is in Good Financial Standing.

 Brand Equity  Recognizable and appealing  Innovation & Growth  PolyArmour  HEATGEAR, COLDGEAR, ALLSEASONGEAR  Charged Cotton  Professional & College Athlete Sponsorship  Universities  Athletes in Different Sports

 Pricing  Expensive  Dependence on 2 Distributors  Dick’s Sporting Goods and The Sports Authority  High Reliance on Domestic Market  88% of net sales from within U.S.

 Market targets of women and youth  Introduction of footwear  Continuation of producing high quality products  Going internationally  Big name athlete endorsements  Using cotton in their shirts

 Intensity of competition within the industry  Not placing patent on original design  Competitors having higher cash flows that can be put toward capital expenditures  Abandoning original demographic of intense athletes  Crude oil prices

The new launch of their mouth guard “the Under Armour Performance Mouth wear by ArmourBite Technology. ArmourBite powered as fifteen years of research and development as well as approval of satisfied Professional, Collegiate, Amateur and Novice athletes.” (Dr. Frank W. Montoya, 2008)

 For example, the organization is settings its footwear apart by running shoes, and they'll tick off a list of advances in the composition of the foam in the sole or the moisture-resistant fabric used in the shoe's upper.  Other technology the company is adding to set its footwear apart is cartilage and rotational traction football cleats are uncomfortable to stand on. So Under Armour added disks of gel beneath each stud. On the other hand, baseball players make a lot of left-hand turns. Circular grooves under one of the upper studs of its baseball cleats help players get traction when they round the bases.  In addition, suit research suggests compressing muscles after exercise helps stabilize them and rebuild tissue. Under Armour plans to launch togs that athletes can wear post-workout to recharge muscles (Mehta, 2009)

 Continue current strategy  Expand sports equipment line  Look across other industries and break into new market space  Use new material that reflects heat and UV rays to create car seat covers

 Athlete Care Line  Prevent/care for injuries  Use moisture-wicking material in casts, athletic tapes, wraps  Expand into sports drinks industry  Team up with Gatorade for marketing

 Under Armour founded in 1996  Mission: “To make all athletes better through passion, science and the relentless pursuit of innovation.”  Top Competitors: Nike, Columbia Sportswear, Adidas  Diversification: Innovation and Technology of new markets  Options: Prevent/care for injuries  Use moisture-wicking material in casts, athletic tapes, wraps  Team up with Gatorade

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