Under Armour:
PEST and
Industry Analysis
Brian Teufel
MGT 490-004
Assignment #2
Professor McDermott
March 17, 2011





Kevin Plank, the CEO of Under Armour developed
a blue ocean strategy
Created Performance Apparel market – enhances
consumers performance while offering greater
comfort
Total sales over $1.0 billion in 2010
First-mover advantage has allowed UA to gain
70% of the U.S. market and about 15% of the
global market
Performance Apparel has evolved from niche to
mainstream in terms of target market and
competition (Nike and Adidas)
Key
Dependencies
Proof of Dependency
Future Challenges
Innovation
1/4 of 3,900 employees
in R&D
Ratio likely to decrease as UA
branded stores continue to
open
U.S. Market
95% of sales come from
U.S.
International market
development
Performance
Apparel
85% of sales come from
PA
Product development of nonPA products
International
Subcontracting
Product suppliers mainly
from Asia
Diversify supplier locations as
costs and inflation increase in
China
Retailers
2 retailers make up
about 50% of sales
Brand development and
franchising

Under Armour owns branded retail stores in 28 U.S. states (30+ stores) and 23
other countries (25+ stores).
- First UA branded retail store opened on November 1, 2007.
• Opportunities and Threats are ranked in terms of
importance separately; top five of each are ranked accordingly.
(1 = extremely important, 5 = Not very important.
Factor
Trend
Political
- FDI policies
T
2
-
Economic
- Economic Recovery
- Increase in cost of raw materials and
resources; shipping costs
i.e. cotton, all man made fibers, and the
big one being OIL/GAS
- Growth of performance apparel
industry (Domestic and International)
- Increase in interest rates
- Inflation in China increasing
- Chinese labor costs increasing
O
T
3
5
1
O
5
1
T
T
T
2
3
3
5
4
3
- Consumers focus on quality, not price
- Aging population and increase in
physically active seniors
- Increase in physically active women
- Consumers becoming more health
conscious
- Obesity rates in U.S.
- Sport participation is a key aspect of
U.S. culture
- Increase in sports participation in
emerging markets
O
O
3
2
4
-
O
O
3
3
-
T
O
3
3
2
5
O
4
2
- Increase in e-commerce
- Increase in m-commerce
O
O
4
3
3
3
Social
Technological
Evaluation;
O=Opportunity
T=Threat
Impact
(1=Low;
5=High)
Rank in
terms of
importance

FDI Policies -

Chinese Labor Costs Increasing
Some foreign countries have policies in place that prohibit
100% ownership of retail stores which poses threat to internationalization
◦ Costs of international labor is on the rise.
◦ Hourly compensation costs of manufacturing employees in China from
2002-2008 is shown below.
Year
National Currency
Basis (Yuan)
U.S. Dollar Basis
(U.S. $)
2002
4.74
.57
2003
5.17
.62
2004
5.50
.66
2005
5.95
.73
2006
6.44
.81
2007
8.06
1.06
2008
9.48
1.36
Factor
Comment
U.S. and International Economic
Recovery
Consumers have more disposable
income
Growth of Performance Apparel
industry
PA industry is on the rise and
shows no signs of slowing down
Chinese Inflation
Chinese inflation is on the rise and
expected to continue to rise
Increase in Cost of Raw
Materials/Resources
Cotton, Man-made fibers, are on
the rise but GAS is the big factor
•The growth of the performance apparel industry
is the greatest opportunity.
•More Consumers = More Revenues







Obesity rates in U.S. show people not physically
active
Consumers focus on quality more than price
Increase in physically active women
Increase in health conscious consumers = more
exercise/physical activity
Sport participation is a key aspect of U.S. culture
Aging population and increase in physically
active seniors
Increase in sports participation in emerging
markets


Increase in e-commerce
Increase in m-commerce (trend is to always
have digital connection)
Opportunity
Rank in terms of
importance (1; least
important, 5; most
important)
Comments
Growth of the performance
apparel industry (domestic
and international)
1
Protect products and
the industry
Increase in sports
participation in emerging
markets (foreign markets)
2
Marketing will be key
Increase in commerce
(electronic and mobile)
3
Take advantage
Consumers focus on
quality more than price
4
Innovation and
Differentiation
Sport participation is a key
aspect of U.S. culture
5
Sport participation will
always be a key aspect
of U.S. culture
Threat
Rank in terms of
importance (1; most
important, 5; least
important)
Comments
Increase in cost of raw
materials and resources,
shipping costs
1
Buy in higher
quantities; volume
discounts
Obesity rates in U.S.
2
Marketing will be key
International labor costs
increasing
3
Explore new options
for production
Inflation in China
increasing
4
Explore new options
for production
Increase in interest rates
5
Keep debt as low as
possible


Under Armour is in the extremely competitive performance apparel
industry which is defined as anything that is worn which enhances the
performance of the user.
Performance apparel global sales = $6.4 billion in 2010 and is expected
to grow to $7.6 billion by 2014.
◦ In 4 years, the industry is expected to grow by 15%.
Participants in the PA Industry
Buyers/Buyer Groups
Physically active and want to enhance their
performance, especially athletes. Groups
include both domestic sports teams,
international teams, and retailers
Suppliers/Supplier Groups
Third Party Suppliers (100+)
Competitors
Nike, Adidas, Columbia Sportswear
Substitutes
Conventional apparel or no apparel
Potential Entrants
Anyone is a possible entrant in this
industry because of the high growth rates,
especially organizations that produce
apparel, sportswear, or equipment.
Force
Threat of New Entrants
High/Moderate/Low
Underlying Drivers
(Strong or Weak)
High
Weak
Threat of Substitutes
- Core Athletes = High
- Non-Core Athletes =
Moderate
Strong
Bargaining Power of
Buyers
- Athletes and Teams
= High
- Non-Core Athletes
= Moderate
Strong
Bargaining Power of
Suppliers
Moderate
Weak
High
Strong
Intensity of Rivalry


With the expected growth of the performance
apparel industry, there will be new entrants in
the industry from all over the world.
Most companies who enter the performance
apparel industry are unable to compete due
to existing brand loyalty and the high barriers
to entry.
◦ Examples include New Balance, Velocity, and Sugoi
Factor
Under Armour
Lack of Direct Competition
Exceptions include Nike and
Adidas
PA not essential to participate in
sports or physical activity
UA products enhance
performance and allow comfort
Potential Substitute Products
Low
Switching Costs
Low


Substitutes are limited to conventional apparel or no
apparel at all.
Core athletes have a large number of substitute
options to choose from.
Buyer/Buyer Group
Bargaining Power Comment
Core Athletes
High
Exposure to the public and
builds relationships
Moderate
- Limited competition and
substitute products
- UA’s products differentiated
from competition
- Consumers do not need
performance apparel to
compete or be physically
active
Professional Teams
Non-Core Athletes
Non-Professional
Teams
Recreational Buyer

The bargaining power of buyers depends on the
consumer’s skill level and the level of the team.
Factor
Under Armour
Switching Supplier Costs
Moderate
# of Different Suppliers
Very High
Product Uniqueness
Moderate
Third Party Suppliers
Very High


The use of third party suppliers allows performance
apparel companies to chose their suppliers based on
highest quality and lowest production cost.
Third party suppliers have high bargaining power by being
able to choose the companies that they want to supply for.
◦ The best third party suppliers can select the company or
companies that treat them the best and provide the best
compensation.
◦ There are thousands of third party suppliers all over the world.
Factor
PA Industry
# of Competitors
High
Brand Loyalty
High
Industry Growth Rate
Extremely High
Quality differences between competitors
Moderate to High


Currently, the performance apparel industry is
growing rapidly at 15%; this allows rivalry to grow
rapidly as well.
There is a high # of competitors but UA, Nike,
and Adidas make up the majority of the industry
due to a quality advantage over other
competitors.
Differentiation
Niche
Innovation
Enhance
Performance
R&D

The opportunities for the performance apparel industry
outweigh the threats.
◦ Labor and gas costs are increasing but opportunities such as the
global growth of the PA industry, global increase in sport
participation, and increase in both e-commerce and m-commerce
outweigh the threats.

Rivalry is extremely high in the performance apparel
industry.
◦ The competition between Nike, Adidas, and Under Armour is
fierce and it continues to heat up.

Participants in the performance apparel industry must
always be aware of new entrants because the industry is
on the rise.
◦ Create high barriers to entry.

Blue Ocean Strategy was the basis for Under Armour and it
allowed them to achieve success in the PA industry.
◦ Innovation, Differentiation, R&D, Creating Niche of performance
apparel that enhances performance while allowing comfort.
Under Armour:
Competitor and
Market Analysis
Brian Teufel
MGT 490-004
Assignment #2
Professor McDermott
March 17, 2011
Company
Under Armour
PA Sales
(in millions)
Total Sales
(in millions)
PA sales as %
of total sales
% of sales
spent on R&D
$853
$1,060
81%
33%
Nike
$1,300
$19,014
7%
12%
Adidas
$1,150
$11,990
9%
5%
$400
$1,484
27%
1%
Sugoi
$34
$85
40%
2%
PUMA
$425
$2,862
15%
4%
Quiksilver
$250
$1,834
14%
3%
North Face
$300
$1,400
21%
3%
Private
Company
Private
Company
Private
Company
Private
Company
Columbia
Sportswear
Company
New Balance
Low Cost
Broad
Target
Competitive
Scope
Narrow
Target
• New Balance
• Columbia Sportswear
Company
• Champion
Competitive
Advantage
Differentiation
• Nike
• Adidas
• Under Armour
• PUMA
• The North Face
• Quiksilver
Price
Low
High
•New Balance
Low
•Champion
•PUMA
Quality
•Quiksilver
•Columbia
Sportswear
Company
•The North Face
High
•Adidas
•Nike
•Under Armour
2%
1%
Sales
4%
9%
U.S.
Europe
20%
64%
Asia/Pacific
Rest of North America and South
America
Africa
Australia
-UA = 23.5%
-Nike = 8%
-Adidas = 7%
-Col. Sportswear = 22%
-Quiksilver = (-9%)
-PUMA = 22%
-UA = 0%
-Nike = 20%
-Adidas = 14%
-Col. Sportswear = 10%
-Quiksilver = (-9%)
-PUMA = 22%
-UA = 4%
-Nike = (-6%)
-Adidas = 7%
-Col. Sportswear = 13%
-Quiksilver = (-8%)
-PUMA = (-3%)
-UA = 0%
-Nike = 20%
-Adidas = 16%
-Col. Sportswear = 13%
-Quiksilver = N/A
-PUMA = -3%
-UA =5%
-Nike = 0%
-Adidas = 2%
-Col. Sportswear = 30%
-Quiksilver = 4%
-PUMA = (-2&)
Company
Core Competence/Competencies
Core Competencies Weak/Moderate/Strong
Under Armour
Innovation, Quality, R&D
Strong
Nike
Inspiration, Innovation,
Brand Image/Loyalty
Strong
Adidas
Innovation, Technology,
Sustainability
Strong
Columbia
Sportswear
Company
Distribution, Outerwear
Moderate
Sugoi
Quality, Bicycle-wear
Moderate
PUMA
Sustainability, Value,
International Football
Moderate
Quiksilver
Surfwear, Quality
Moderate
North Face
Innovation, Outerwear
Environmental Awareness
Moderate
New Balance
Footwear, Innovation, Customer
Service
Weak
Champion
Comfort, Quality
Weak
Company
Key Brands
Product Scope
Under Armour
Under Armour
Apparel, Footwear, Accessories
Nike
Nike, Nike Golf, Air Jordan,
Cole Haan, Hurley,
Converse, Umbro, ect…
Apparel, Footwear, Sporting
Equipment, Accessories, Caps
Adidas
Adidas, Reebok, Taylor
Made Golf
Apparel, Personal Care, Footwear,
Sporting Equipment, Accessories,
Caps
Columbia
Sportswear
Company
Columbia Sportswear,
Mountain Hardware, Sorel,
Pacific Trail
Apparel, Footwear, Accessories
Sugoi
Subsidiary of Dorel
Industries Inc.
Apparel, Accessories
PUMA
Puma, Cobra Golf, Tretorn
Apparel, Footwear, Sporting
Equipment, Accessories
Quiksilver
Quiksilver, DC, Roxy, Hawk
Apparel, Footwear, Accessories,
Sporting Equipment
North Face
Subsidiary of VF Corporation Apparel, Sporting Equipment,
Camping Equipment, Accessories
New Balance
New Balance, Dunham,
Aravon, Warrior, Brine
Apparel, Footwear, Accessories
Champion
Subsidiary of Hanes brands
Apparel, Footwear, Accessories
Company
Target Market
Market Power
(Low/Moderate/High)
Under Armour
Male and female, anyone who wants to
enhance performance and comfort
High
Nike
Male and female, ages 18-35, physically
active, athletes
High
Adidas
Male and female, physically active,
athletes
Moderate
Columbia
Sportswear
Male and female, physically active, loves
outdoor activities
Moderate
Sugoi
Male and Female, physically active,
loves biking and running
Low
PUMA
Male and Female, physically active,
loves soccer (international football)
Moderate
Quiksilver
Male and female, young adult (ages 1535), love warm weather activities
(surfing/skating)
Low
North Face
Male and female, young adult (ages 1635), love cold weather activity
Low
New Balance
Male and female, older adults (ages 35+), Low
love walking/running
Champion
Male and female, hard working,
physically active, all ages
Low





Performance Apparel is defined as anything that
is worn which enhances the performance of the
user.
New and existing companies are attempting to
break into the PA industry every day due to the
rapid growth.
The top three companies in the global PA
industry include Nike, Adidas, and Under Armour
Gross sales come from company owned stores
and third party retailers.
Sell products of quality which enhance
performance while providing comfort to the user.
Global Performance Apparel Sales ($ billions)
10
7.6
8
6.4
6
4
Global Performance
2.8
2
Apparel Sales ($
3.3
18% Inc.
billions)
52% Inc.
15% Inc.
0
2002
2006
2010
2014
• The Performance Apparel industry has grown
rapidly in the past four years and it is expected
to continue to grow rapidly the next four years.
9%
15%
22%
2%
4%
7%
Trend
Opportunity/Threat
Comment
Sales increase (15%+)
Opportunity
Will continue to grow
Quality over price
Opportunity
Consumers want value for their
money
Increase in technological
innovation
Opportunity
Compression apparel is currently
the big thing in PA
People becoming more
physically active
Opportunity
Market to entire market, not
particular segments
Increase in cost of raw
materials/resources
Threat
Find ways to negate such costs
Eco-friendly design
Opportunity
More consumers will buy product
and feel they are helping the
environment
Fashion friendly
Opportunity
Consumers feel better when wearing
something fashionable (esp.
women)
New competitors entering
market
Threat
Create high barriers to entry and
superior product
Moving towards all ages
(older generation)
Opportunity
Market to entire market, not
particular segments
Company
Corporate Social
Responsibility
Mission
Statement
Marketing
Vision/Strategy
Under
Armour
Innovation, Inspiration,
Reliability, and Integrity
Make all athletes
better through
passion, science,
and the relentless
pursuit of
innovation
-Athlete
Endorsements
-Commercials/
Slogans (“Click
clack” and “We
must protect this
house”)
-Event and team
sponsorships
Be the world’s #1
performance
athletic brand
Nike
Sustainability,
Innovation, Quality
Bring inspiration
and innovation to
every athlete in the
world.
-Brand Image
-Brand promotion
-Athlete and team
sponsorships
Experience the
emotions of
winning and
crushing the
competition.
Adidas
Sustainability,
Innovation,
Environmental
Awareness
Strive to be the
global leader in the
sporting goods
industry with sports
brands built on a
passion for sports
and a sporting
lifestyle
-Brand Image
-Focus on
international
marketing
-Athlete and team
sponsorships
Enhance social and
env. performance
in the company
and the supply
chain, thereby
improving the
lives of the people
making our
Company
Corporate
Social
Responsibility
Mission
Statement
Marketing
Vision/Strategy
Columbia
Sportswear
Responsible
business practices
balancing
economic goals
with social and
environmental
considerations
Provide consumers
the greatest
quality outdoor
gear while keeping
them safe
-Increase on-line
marketing
-Stick to what we
know and show
consumers
advantage of
products
Continue to
internationalize
and provide high
quality products to
outdoor
enthusiasts
Sugoi
Innovation,
Excellence, Value
Make excellent
performance
athletic wear for
bikers and various
other activities
_Increase global
awareness of
brand
_Prove quality
and uniqueness
to consumers
Every garment that
carries the Sugoi
name is still
designed,
developed, and
made in Vancouver,
Canada
PUMA
Sustainability,
work towards a
more eco-friendly
world, global
peace, Quality
Stay true to our
values; inspire the
passion and talent
of our people
working in
sustainable,
-Sponsor
international
football and
cricket players
and teams
-Increase
PUMAvision- create
a safer, more
peaceful, and more
creative world than
we know today
Company
Corporate Social
Responsibility
Mission Statement
Marketing
Vision/
Strategy
Quiksilver
Touch people
worldwide and
improve quality of
life, quality
Become the leading
global youth apparel
company
Focus is social
media
Maintain our core focus
and roots while bringing
our lifestyle message of
board riding,
independence, creativity
and innovation to this
global community
North
Face
Send famous athletes
overseas and give
back as much as they
can; innovation;
consumer-focused
Never stop exploring
-Goal is to
increase brand
awareness
-Social
marketing
Our passion is beyond
setting records and
achieving fame, it's all
about changing our lives
and those people who
inspire us to aim for
extraordinary dreams
New
Balance
New Balance
Foundation; Make
consumers value
worth their money
Demonstrating
responsible leadership,
we build global brands
that athletes are proud
to wear, associates are
proud to create and
communities are proud
to host
-Word of
mouth
-Athlete
sponsorships
Continue to give back to
all communities and
provide excellent
products to excellent
consumers
Champion
Ethical business
practices, protect
environment, quality
Anticipate what
consumers want and
innovate to meet those
needs in comfort, fit,
and value
-Social media
-Athlete
endorsements
world-class consumer
goods company with a
distinctive competence
in operating a low-cost
global supply chain




Social media has impacted the PA industry
positively, increase in sales due to easier
communication between consumers.
Consumers can give feedback (+ and -) in a
relaxed environment.
Consumers can also socialize with other
consumers to discuss PA products.
Marketing has been most effected by social
media with sites such as Facebook, Twitter,
Foursquare, and LinkedIn.
◦ PA companies can market to larger groups of consumers
at a much cheaper cost.





Nike and Adidas are Under Armour’s primary
competition in the performance apparel industry.
Nike and Adidas have jumped UA in total PA sales
even though PA accounts for only 7% of Nike’s and 9%
of Adidas’s total turnover.
Under Armour would be the global leader in
performance apparel sales if they were as successful
internationally as they currently are in the U.S.
Asia and North America are fueling growth in the
performance apparel industry with Europe also
growing.
The performance apparel market is growing at a rate
of higher than 15% and it is expected to continue to
increase for the for seeable future.
Under Armour:
Internal Analysis,
SWOT Analysis,
Competitive Position, and
Conclusions/Recommendations
Brian Teufel
MGT 490-004
Assignment #3
Professor McDermott
March 17, 2011
Year
PA Sales
(in
millions)
Total
Sales (in
millions)
Net
Income
from PA
(in
millions)
Total Net
Income
(in
millions)
% of Net
Income
from PA
2006
$373
$431
$32.4
$39
83%
2007
$513
$607
$40.5
$52.6
77%
2008
$579
$725
$31.5
$38.2
82%
2009
$652
$856
$38.2
$46.8
82%
2010
$853
$1,064
$55.1
$68.5
80%
• Under Armour’s PA sales and net income have increased every year since 2006.
$1,200.00
$1,000.00
$800.00
$600.00
$400.00
Licensed Revenue
Accessories
Footwear
Performance Apparel
$200.00
$0.00
2006 2007 2008 2009 2010
• On average, around 80% of Under Armour’s net income comes from PA.
• All $ amounts are in millions
Year
PA
% inc.
% dec.
2006
$373.2
-
2007
$513.6
2008
Foot
wear
% inc.
% dec.
Accessories
% inc.
% dec.
Licensed
Revenue
% inc.
% dec.
Total
Sales
% inc.
% dec.
$26.9
-
$14.9
-
$16
-
$430.7
-
27%
$40.9
34%
$29.1
49%
$24
33%
$606.6
29%
$578.9
11%
$84.8
52%
$31.5
8%
$30
20%
$725.2
16%
2009
$651.8
11%
$136.2
38%
$35.1
10%
$33.3
10%
$856.4
15%
2010
$853.5
24%
$127.2
(7%)
$43.9
20%
$39.4
15%
$1,063
19%
• Footwear sales increased every year from 2006-2009 but decreased by 7% in 2010.
• PA and accessories sales have increased every year; PA had a huge increase of 24%
from 2009 to 2010.
Year
N.A. Sales
(in millions)
% inc.
% dec.
% of Total Foreign
Sales
Sales
% inc.
% dec.
% of Total
Sales
2006
$415
-
100%
$0
-
0%
2007
$582.5
29%
100%
$0
N/A
0%
2008
$692.4
16%
95%
$32.9
100%
5%
2009
$808
14%
93%
$48.4
32%
7%
2010
$997.8
19%
91%
$66.1
27%
9%
• International sales have increased every year since 2008 but UA is still heavily
reliable on North America for about 90% of their total sales.
Asset Distribution
Cash and Cash
Equivalents
11%
12%
32%
30%
Accounts Receivable
Inventories
15%
Property and Equipment
Other
Asset
$ in Millions
Cash and Cash Equivalent
$203.870
A/R
$102.034
Inventories
$215.355
Property and Equipment
$76.127
Other
$77.992
Total Assets
$675.378
200, 5%
Factory House and
Specialty Stores
900, 23%
600, 15%
Distribution Facilities
2200, 57%
Research and
Development
Other
# of Employees, % of Total Employees
• Under Armour has a total of 3,900 employees.
• Factory House and Specialty Stores employees are increasing rapidly because
UA is opening more branded stores.
• Almost ¼ of UA’s employees are devoted to research and development.
Strength
Impact (1=Low; 5=High)
Brand Loyalty
4
Brand Equity
5
Core competence in Innovation
5
High Quality Apparel
4
Increase in Sales Every Year
3
Wide Range of Apparel
3
Athlete and Team Sponsorships and Endorsements
3
Very Intelligent and Efficient R&D Team
4
Weakness
Impact
Small Total Sales and Net Income compared to Nike and Adidas
4
Heavily Dependent on Domestic Market; Small International Presence
5
High Prices
3
Not a Synergistic Marketing Campaign
3
Heavily Dependent on PA for Sales (80%+)
4
Target Male Market more than Female Market
2
27% of Sales come from 2 Distributors; Dick’s and The Sporting Authority
4
Opportunity
Impact
(1=Low; 5=High)
Economic Recovery
3
Growth of PA Industry (Domestic and International)
5
Consumers focus on Quality, not Price
3
Aging population and increase in physically active seniors
2
Increase in physically active women
3
Consumers becoming more health conscious
3
Sport participation is a key aspect of U.S. culture
3
Increase in sports participation in emerging markets
4
Increase in e-commerce and m-commerce
Threat
4
Impact
FDI Policies
2
Increase in cost of raw materials and resources; shipping costs
i.e. cotton, all man made fibers, and the big one being OIL/GAS
5
Inflation in China Increasing
3
Chinese Labor Costs Increasing
3
Obesity Rates in U.S.
3
Rank in respect to entire
SWOT Analysis
Factor
S/W/O/T
1
Core Competence in Innovation
S
2
Increase in cost of Raw Materials, Resources,
and Shipping Costs . . . OIL/GAS!!!!
T
3
Brand Equity
S
4
Heavily Dependent on U.S. Market; Small
International Presence
W
5
Growth of PA Industry
O
6
27% of Sales come from 2 Distributors
W
7
Heavily Dependent on U.S. Market for PA Sales
W
8
High Quality Products
S
9
Increase in Sports Participation in Emerging
Markets
O
Low Cost
Broad
Target
Competitive
Advantage
Differentiation
Moving Here
Competitive
Scope
Narrow
Target
Started Here
• UA is moving from niche to mainstream
in an attempt to compete with Nike and
Adidas on other product lines (footwear and
accessories) other than performance apparel.
Market Share
High
•Performance
Apparel
High
Star
•Footwear
Question
Mark
•Accessories
Market
Growth
Low
Low
Cash Cow
Dog
• UA creates value for the consumers and gains its competitive advantage
against the competition primarily through technology development.
• Innovation is what made UA what it is today, and Innovation is the
key for future success.
Primary Activities
Weak/Moderate/Strong
Under Armour
Inbound Logistics
Moderate
Third Party
Operations/Manufacturing
Moderate
Third Party
Outbound Logistics
Moderate
Third Party
Marketing and Sales
Moderate
Currently, UA has many
sponsorships and endorsements but
no synergy in marketing plan
After-Sale Service
Support Activities
Strong
UA has great reputation for
customer service and after-sale
service
Weak/Moderate/Strong
Under Armour
Firm Infrastructure
Strong
UA is structured very well and
has great company culture
Human Resources
Management
Moderate
UA is limited by only having
3,900 employees but they hire
and train very well
Technology Development,
Engineering
Procurement
Very Strong
Moderate
Innovating and producing
technologically advanced
products is what UA does
Third Party
Component
Comment
Innovation
UA is extremely reliant on producing
innovative products that will continue to
impress their consumers and hold on to
high brand equity and brand loyalty
Market Development
UA is really focused on selling their
products to emerging markets; 90%+ of
UA’s products are sold in the U.S.
Market Penetration
UA would love to improve their market
share in the U.S. for PA and improve their
footwear and accessories sales as well
Product Development
UA is devoted to continue to introduce
new products to the U.S. and also other
emerging markets around the world
Research and Development
UA plans on continuing to produce new
and technologically advanced products
which are superior to the competition
Strategy
Products, Market
Under Armour
Market Penetration
Existing Products,
Existing Market
Very Strong
Existing products
are high quality and UA holds
majority of existing market (U.S.)
- Continue increasing U.S. market
share
Market Development
Existing Products,
New Market
Strong
Existing products are
high quality but UA needs to
increase market share in
international and emerging markets
Product Development New Products,
Existing Market
Very Strong
All new products
are technologically advanced from
previous products
-U.S. market receives new products
extremely well (Loves Innovation)
Diversification
Weak
Very difficult to
introduce new products into new
markets without having a decent
market share of existing products
New Products,
New Market
1 = Lowest Level of Effort
4 = Highest Level of Effort
Existing Products
Existing Market
2
Market Penetration
New Market
4
Market Development
New Products
3
Product Development
1
Diversification
• UA is focused on all of these strategies but they
must prioritize according to what will achieve them
the greatest amount of success and what will put them
in the best position to grow in the future.

Domestic Sponsorships/Endorsements
Athlete/Team
Association/Sport
Type of Deal
All Teams
NFL
Official supplier of Footwear
Auburn, Boston College,
Maryland
NCAA
Official Outfitter
Brandon Jennings
NBA
Endorsement
Lindsey Vonn
Skiing
Endorsement
Tom Brady
NFL
Endorsement
Michael Phelps
Swimming
Endorsement
Hunter Mahan
PGA
Endorsement
Cam Newton
NCAA/NFL
Endorsement

International Sponsorships/Endorsements
Athlete/Team
Association/Sport
Type of Deal
Tottenham
Champions League
PA and Accessories Provider
Hockey Canada
National Team
Official Outfitter
Hanover 96
Bundesliga
PA and Accessories Provider
All Teams
Welsh Rugby Union
PA and Accessories Provider






PA sales and overall sales have increased every year
since Under Armour has been founded.
PA sales account for more than 80% of total sales.
International sales account for less than 10% of sales
but they have been increasing slightly since 2008.
Under Armour is attempting to make a push into
international and emerging markets.
The two main strengths for Under Armour are its core
competence in innovation and its brand equity.
UA is moving from niche to mainstream in an attempt
to compete with Nike and Adidas on other product
lines (footwear and accessories) other than
performance apparel.




Under Armour’s primary focus should be to
increase their U.S. market share in other products
such as footwear and accessories while
maintaining market leadership in PA.
Under Armour should move into international
and emerging markets with caution to assure
they do not expand too quickly.
Under Armour needs to continue to provide value
to consumers through innovation and research
and development.
Under Armour needs to integrate their marketing
plan and make sure than all sponsorships and
endorsements contribute to the value of the
brand.