Under Armour Case Write Up

Under Armour Case Write Up

Beginning 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