Ashley Helton MGT4070 Week 9 Assignment 2: Case Study Under Armour was created by former University of Maryland football

player Kevin Plank in 1996. His idea was to create a shirt that not only felt like a second skin, but would help to control the wearers temperature. The mission of the company was to enhance the experience for all athletes by applying passion, science, and the relentless pursuit of innovation to create clothing with temperature control, comfort, and flexibility (Hitt, Ireland & Hoskisson, 2009). The environmental threats that have immediate implications for Under Armour include competitors such as Nike, Adidas, Columbia Sportswear and SportHill. There is stiff competition in the athletic apparel industry with companies of various sizes employing different strategies in order to attract consumers to their product and brand (Hitt, Ireland & Hoskisson et al., 2009). Nike is not only a leader in athletic shoes, but also in apparel and equipment; the company grossed about $18.6 billion in 2007. Nike like Under Armour sells products for every sport and climate. In 2007, Adidas reported profits of $15.6 billion from its product line that includes shoes, apparel and outdoor adventure. Columbia Sportswear has grown since the 1980s due to the introduction of its waterproof, breathable fabrics. It is now one of the largest manufacturers and sellers of outdoor apparel specializing in skiwear, snowboard gear, and hunting, fishing, hiking, camping, and casual wear (Hitt, Ireland & Hoskisson et al., 2009). The greatest opportunities available in the market for Under Armour to pursue would be to open more retail sales outlets in the future. Although the company introduced its first retail

sales outlet in Maryland in 2007, opening up more stores could broaden its consumer base. This is especially true if the company decided to open retail sales outlets internationally. One of the companys greatest organizational strengths is the companys ability to relate to its consumers and the quality of upper management (Kevin Plank). Hitt, Ireland & Hoskisson, (2009) states: In the athletic world, he is considered by his customers to be one of them rather than a CEO of a very profitable business. It frequently takes competitors years to develop a loyal customer, but Under Armour has been able to quickly earn loyalty after a customer has had one or two good experiences with their purchase. Most of the sports teams feel that Plank is truly helping them by providing a better product and not simply trying to sell his brand. Plank embraces and nurtures this connection respectfully and gracefully. He regularly seeks feedback regarding existing products and the need for new products (p 414). Right now, Under Armours major weakness is its lack of patents on the materials that are used in the manufacturing of its products. Licensing agreements are of utmost importance in this matter so that competitors do not steal what Under Armour has worked hard to build. Hitt, Ireland & Hoskisson (et at., 2009) states the following: Under Armour's differentiation strategy has been successful to date; however, the lack of proprietary product rights, intellectual property rights in foreign countries, and a heavy reliance on relatively few third-party suppliers and manufacturers could adversely affect the long-term sustainability of the firm. The company's ability to obtain patent protection

for its products is limited, and as previously mentioned it does not currently own any fabric or process patents (p. 416). Under Armours strengths--its ability to relate to consumers of all types and the quality of its managementcan be used to deflect environments threats and take advantage of opportunities to further the companys success. This is because consumers want to know that companies care about them and not just their money. Kevin Plank has worked hard (and still does) to make sure that he is putting out a product that pleases the consumer and gives them the ability to live actively. The company has been well-received not only because of the product, but because of the attitude of Kevin Plank. He never gave up, even when things seemed hard or like the company was going nowhere. It also helps that Plank used his knowledge of sports and in order to earn new business and give customers what they want. In order to overcome the companys weakness, Under Armour will need to be able to obtain patent protection for its products. The last thing that the company wants is for another company to come along and create products with similar fabrics due to the company not owning any fabric of process patents.