Under Armour

Challenging Nike in Sports

Apparel

Presented By
Md.Kamrul Hasan Shimul
1120322
Md. Nazibul Islam
1120628
Uchash Bhattacharjee
1121000
Fuad Hasan Rifat
1230754
Md.Abdullah Nabil
1321011

Introduction

Founded in 1996 by Kevin Plank

Headquarters is located in Baltimore,
Maryland.
KP sport and then Under Armour in
2005
Different gear designed
Brand mission

Five Forces
1.
.
.
.

Competition from rival sellers:

The rival among established companies is intense
Low switching cost
Low level of products

2. Competition from potential new entrants:

. Existing companies in the sports apparel industry could enter the
performance apparel market in the future.

3. Competition from producers of substitute products:

. Technology has tremendously aided to increase the threat of
substitute products.
4. Supplier bargaining power:
. A diverse supplier base limits bargaining power.

Cont.
5. Customer bargaining power:
No switching cost and customer have several option on which
products to choose.

SWOT Analysis

Strength
1.Respected Brand Name
2.Strong customer Loyalty
3.Financially strong
4.High net income in year 2009
5.Positive response from customers
6.Simple, straightforward & memorable
message
7.High Quality & High performing product

Weaknesses
1.Young Company
2.Very Limited product line in the beginning
3.Limited online presence
4.High prices
5.Limited product range
6.Loss of the military market

Opportunities
1.Focus on consumer lifestyle improvements
2.International expansion
3.Sponsorships
4.Larger market share in the female market
5.Getting into soccer

Threats
1.Negative Impact on the "Green" Market
2.Other companies in same space (Nike,
Adidas, etc)
3.Male dominant focus
4.Lack of female focus
5.High labour cost
6.Change in consumer behaviour

Under Armour's Strategy

Higher quality:
Advertisement:
Outlines strategies:
The product line strategy:
sports marketing strategy :
Retailer marketing
Strategy:

Strategic Layout Of
Competition

Ratio Analysis

Value Chain Of Under

Armour

Problem Statement:
We have figured out 4 problems, Under
Armour is facing in Challenging Nike. These
are really big challenges for Under Armour.
Under Armour has to work on these
problems to challenge Nike. They are,
High Manufacturing Cost
Weak R&D
Small International Presence
Less Athlete Endorsement in Advertising

Recommendations:
I would recommend Kevin Plank,
CEO, Under Armour to focus on few
things and work on them. They are,
Focus on Technology and Innovation
to stay competitive
Focus More on Outsourcing
Build a strong Research and
Development.
Expand its product line.

Recommendations
cont.
Increase presence in International
Market as a part of Global Business.
Choose a worldwide popular sport
(Soccer) and produce more for it.
Not only Men, Women and Youths
but also target Children.
Endorse more Athletes as a part of
popular way of promotion.
Continue Marketing Campaigns.