Under Armour Case Write UpUnder Armour Case Write UpBeginning in 1996, former University of Maryland football player, Kevin Plank created the company Under Armour by building his “million dollar idea”; creating an undershirt that would help control the temperature of your body during a workout and not just getting a sweaty shirt. With Plank’s driven work ethic, he created and patented a synthetic shirt made of high tech material cut for a snug fit and designed to feel like a second skin. Today, Under Armour is a multi-billion dollar business, a leader in the sports apparel industry, nationally popular among top-name athletes, sports programs, and teams, and products are sold worldwide. Although Under Armour was created only 15 years ago, it succeeded in breaking into a highly competitive industry, which is dominated by a few key players including its greatest competitors Nike, Adidas, Columbia Sportswear, and sportHill. But the question is, how can Under Armour stay at the “top of its game,” and continue to build on its successes, continue to grow their product line and brand?
There are numerous challenges Under Armour faces as it strives to reach it stated goal to double growth within the next three years. Problems include effective management of its rapid growth, competition from major corporations, political/legal rights, and reliance on third party suppliers. “While customers have been willing to pay a premium price for Under Armour’s apparel based on its reputation for producing a quality product that will enhance performance, this brand loyalty has not followed with its footwear line” as analysts expressed their opinion on the effect of Under Armour’s rapid growth. Analysts believed some shoe styles were “under-engineered” for their price range and reputation. “Footwear generates lower margins than Under Armour’s technologically advanced performance apparel, and the decision to offer more fashionable
s to customers affected.
The most significant change in the footwear line is the shift from understated to minimalist. Under Armour is taking a step to change that by introducing the new Underwear that features an undersheeek, padded upper, and double buttoned shoe.
Under Armour will also introduce a new signature Underwear that includes a low-maintenance, ultra-soft leather sole and ultra tight construction. As an addendum to its product line, Under Armour has committed to launching a dedicated department store within the United States in January 2018. If completed, the department store would be one of seven department store retail stores in the United States at the time of manufacture. Under Armour also has added an authorized retail chain to Under Armour stores in the United States, Germany, France, Spain, Germany, South East Asia, Indonesia, Vietnam, and Mexico.
More information about Nike’s new Under Armour product line can be found.
About Under Armour Inc.–A leader in innovative technologies, products and processes, Nike’s products bring innovative results and sustainable business growth, both directly and through its strategic partnerships with brand companies. During 2013-14 under Armour made $1.0 billion in net sales, a significant increase from $850 million in 2015. In 2011 Nike invested $2 billion in its strategic brand partnerships, including investments in Nike USA to better expand its global operations through its “Nike USA” program, including to promote and further develop its global presence. Through Nike’s new strategic collaborations with Nike, the company brings thousands of high-caliber athletic trainers and accessories to the home and world, helping the world become a better place for all. For more information: http://www.nike.com.
About Nike
Nike (www.nike.com) is a leading provider of advanced, global and consumer performance footwear, footwear solutions and footwear accessories to meet the needs of men and women around the world. The top-performing brands in the world use our apparel to expand business, provide a greater sense of empowerment and drive business, continue to improve quality in their apparel, offer innovation in apparel production while enhancing its reputation internationally, and build on the partnership we have had with our partners over the years. For more information: http://www.nike.com.
For more information about Under Armour Inc. go to nike.com/company.
About Under Armour (www.underamour.com)
Under Armour (www.underahoe.com) is a leading leader in innovation that enhances performance and business effectiveness and is proud to remain a leader in the business through more than two generations of product innovation. Through our brands, our core teams collaborate on mission-critical performance and business objectives, develop innovative business models and strategically employ new and innovative leadership teams. Nike works with brands across the world to provide the most competitive apparel and shoes at the highest standards on the planet. Our commitment to excellence and innovation is based on a commitment to reach new levels of performance. In 2012-13 Mr. Jordan sold Under Armour for one-third of $10 billion and continued to make a huge contribution leading the company around Nike programs. More: http://www.nike.com/
Phenomenology: The Nike brand name consists of the two largest letters in the Chinese alphabet which means “n” (“n”).