...Under Armour has exponentially grown within the last 10 years even though they have been under the shadow of the most lucrative company of the 21st century Nike. Even though Under Armour has been working under Nike’s shadow they can't be considered to far back. Under Armour has worked itself up into becoming the second most popular athletic apparel in America, surprisingly beating Adidas in the market. Many would think that Adidas would be Nike’s only competitor but speaking statically Under Armour is right behind Nike eating into Nike’s market share. Under Armour was founded in 1996 by Kevin Plank the CEO and chairman of Under Armour and it all started from his grandmother's basement in Washington, D.C. The company is now based in Baltimore,...
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...Academia logo redesign 2015 LOG IN SIGN UP Case Study 2, Under Armour's Strategy Nicola Hudson UPLOADED BY Nicola Hudson TRENDING top 1% VIEWS 1,786 DOWNLOAD Case Study 2, Under Armour’s Strategy Under Armour is an emerging company in the sports apparel industry whose mission is to “Make all athletes better through passion, science and the rel entless pursuit of innovation” . Under Armour was a disruptive innovator in the sports apparel industry by creating sports apparel using synthetic materials as an alternative to natural fibers, such as cotton. This important change in material resulted in a “shirt that provided compress ion and wicked perspiration off your skin rather than absorb it…that worked with your body to regulate temperature and enhance performance” . This promise to increase athletic performance differentiated it from competing sports apparel companies, but rivals have since implemented synthetic materials into their product lines. This case study seeks to analyze Under Armour ’s history, resources, capabilities, and core competencies, business and corporate-level strategies, as well as the general environment and competitive landscape. After careful inspection of these varying areas, the factors contributing to Under Armour’s current success and future challenges will become clearer. The conception for Under Armour began over a year ago when CEO Kevin Plank played on the University of Maryland football team. Frustrated with...
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...Under Armour is a leading developer, marketer, and distributor of branded performance apparel, footwear, and accessories. Former University of Maryland football player Kevin Plank founded the company in 1996. The company sells the product worldwide. Athletes at all levels, from youth to professional, from playing fields around the world wear this product. The Under Armour global headquarters is in Baltimore, Massachusetts. There are also European headquarters in Amsterdam’s Olympic Stadium, and additional offices in Denver, Hong Kong, Toronto, and Guangzhou, China. Kevin Plank began the business with savings and credit cards in the basement of his grandmother’s apartment. Now, the Under Armour is a business that has their products flying off the display racks. The defining moment for the novice company came in December 1999, with the release of Oliver Stone’s film Any Given Sunday. The film featured Under Armour throughout its duration, but the pivotal exposure scene was the locker-room scene with Jamie Foxx and Cameron Diaz. Oliver Stone wanted Jamie Foxx to wear a futuristic-looking jockstrap. Kevin made sure that the logo “UA” was front and center. The company only had 19 employees at the time. Now the employee number has reached 2,200 and the sales now exceed $700 million. As the performance apparel market grew, Under Armour diversified their product offerings, developed different types of performance gear, and ventured into women’s apparel, footwear, and other merchandise...
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...Case Study 2, Under Armour’s Strategy Under Armour is an emerging company in the sports apparel industry whose mission is to “Make all athletes better through passion, science and the relentless pursuit of innovation”. Under Armour was a disruptive innovator in the sports apparel industry by creating sports apparel using synthetic materials as an alternative to natural fibers, such as cotton. This important change in material resulted in a “shirt that provided compression and wicked perspiration off your skin rather than absorb it…that worked with your body to regulate temperature and enhance performance”. This promise to increase athletic performance differentiated it from competing sports apparel companies, but rivals have since implemented synthetic materials into their product lines. This case study seeks to analyze Under Armour’s history, resources, capabilities, and core competencies, business and corporate-level strategies, as well as the general environment and competitive landscape. After careful inspection of these varying areas, the factors contributing to Under Armour’s current success and future challenges will become clearer. The conception for Under Armour began over a year ago when CEO Kevin Plank played on the University of Maryland football team. Frustrated with having to repeatedly change his cotton shirt during practice, he envisioned a shirt whose materials allowed the perspiration to dry quickly, causing the athlete to be quicker, faster, and stronger...
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...Entrepreneur's Background Under Armour was founded by former University of Maryland football player Kevin Plank. Growing up with the passion and spirit for sports, Kevin Plank founded Under Armour in 1996 in the basement of his mother's house[1]. Throughout his football career, Kevin regularly experienced the discomfort of practicing on hot days and the unpleasantness of huge amount of sweat making the jersey or T-shirt wet and heavy during the course of a game. This is where Kevin Plank's suboptimal solution spotting comes into place. Kevin Plank come up with the idea of using newly available moisture-wicking, polyester-blend fabrics to create the next generation of tighter-fitting shirts and undergarments that would make it cooler and more comfortable to engage in exhausting activities during hot conditions. Even though Kevin Plank did not "invent" the performance apparel he was the first to see its potential. This drove Kevin to create a product he was very passionate about, which is one of Kevin's strengths. Kevin worked with seven prototypes spending $500[2] before making his final decision for his product. Also he constantly visited schools, training camps, locker rooms, and equipment managers trying to pitch his product which he had in the back of his car trunk. Kevin knew he had a unique idea and even being expelled from his sophomore year in high school due to poor academic performance it still did not stop him from his passion. He joined the Fork Union Military...
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...Case Study Analysis of Under Armour Module: Lecturer: Submission Date: Word Count: Matriculation number: Contemporary Issues in Strategic Management Maurice Brunet 15th November 2013 2990 (max. 3.000) 40131612 1 Introduction Under Armour, founded in 1996 by former University of Maryland football player Kevin Plank, is an American sports apparel company with headquarter in Maryland, US. Kevin Plank had the idea of making a t-shirt that is able to enhance athletes’ performance by controlling the body’s temperature and acting like a second skin. In only 14 years, Plank has succeeded in building Under Armour into a worldwide operating company that offers a wide range of premium priced sport articles including performance apparel, footwear and accessories. As of 2010, Under Armour was able to generate sales revenue of $1.06 billion of which the majority comes from Canada and the United States. Under Armour’s vision is to become the world’s leading performance athletic apparel by pursuing the mission of making “… athletes better through passion, science, and the relentless pursuit of innovation” (Ireland et al., 2013, p.378). The following report provides an analysis of the company Under Armour based on information from Ireland et al. (2013) in Management of Strategy. The paper is divided in the following three parts: 1. Five Forces analysis of the sportswear industry 2. Value chain analysis of Under Armour 3. Under Armour’s generic strategy. 1 2 Five Forces Analysis...
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...Kevin Plank In question one on page 262 of our textbook, Human Relations in Organizations: Applications and Skill-Building, Robert Lussier asks if Mr. Plank’s motivation was to create a new category of performance apparel driven by extrinsic (hygiene) factors or intrinsic (motivator) factors, according to Herzberg’s two-factor theory. Intrinsic factors, or motivators, are higher-level needs such as esteem, self-actualization, and growth. These motivators come from the job itself. Extrinsic factors, or hygeines, are lower-level needs such as physiological, safety, social/existence, and relatedness. These motivators come from outside the job itself. (p. 243) Mr. Plank seems to be motivated by intrinsic factors. He is self-motivated and his perseverance, passion, and persistence regarding his business ideas are what made Under Armour a success. (p. 261) He is a pioneer in his field for his ideas and his products. Question two asks which of McClelland’s manifest needs theory of motivation (achievement, power, or affiliation) are attributed to Plank. (p. 262) I believe Mr. Plank places the most weight out of these three on achievement. If ordered by significance to Plank, I believe first would be his need for achievement, second would be power, third would be affiliation. Question three asks what evidence in the case indicates that job enrichment is a key part of the way work is done at Under Armour. (p. 262) Job enrichment is the process of building motivators into the job itself...
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...Case study: Kevin Plank, Founder, CEO, and Board Chair of Under Armour Weston Kish 5/11/16 Case study: Kevin Plank, Founder, CEO, and Board Chair of Under Armour Weston Kish 5/11/16 1. Plank’s motivation was to create a new category of performance apparel driven by extrinsic (hygiene) factors or intrinsic (motivator) factors, according to Herzberg’s two-factor theory. Intrinsic factors, or motivators, are higher-level needs such as esteem, self-actualization, and growth. These motivators come from the job itself. Extrinsic factors, or hygeines, are lower-level needs such as physiological, safety, Plank saw a need so he tried to fill it to keep dry during a football game. I do not think this was his only reason for making the under armour brand. He seemed to be a person made to do business. I think he, driven extrinsic factor. When he was younger, he took the bracelets he got from Guatemala. He sold them for $580. He knew he was very good at selling, He knew he would be good at business. Not everyone was with him on his venture about trying to start his business. His motivation when it came to getting his business going he was very passionate. 2. I believe Plank places the most weight out of these three on achievement. If ordered by significance to Plank, I believe first would be his need for achievement, second would be power, third would be affiliation. Even as the CEO, he still models his work ethic by his employees. He knows how to keep the motivation...
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...Management 31 October 2013 Under Armour Some of the main reason for Under Armour’s success has to do with the decision making, creativity, and great entrepreneurship from their founder and CEO, Kevin Plank. Plank was very business savvy from day one, while juggling school and football in college he also had his own business, selling flowers which allowed him to save nearly $20,000 to start Under Armour. Plank’s creativity with Under Armour is stemmed from the fact that he was a college athlete so he understands exactly what athletes want from his products. Plank still uses his athletic instincts in the workplace during meeting, rather than just sitting around a table he calls a huddle which allows for a more fun and relaxed environment in the workplace. When plank was a football player at The University of Maryland he was proclaimed as the sweatiest man on the field and his cotton shirts held too much water which made him very uncomfortable during practice and games, thus Plank decided to try and create a shirt that would not hold water which would make him faster and lighter on the field. Plank had an edge that most sports apparel CEO’s did not have and that was that he was a college athlete, which meant that many of teammates and close friends went on to play in the NFL, allowing Plank to send his teammates his product and share them with their new teammates in the NFL. Many college and professional equipment managers, got word of Under Armour, asking Plank for products and...
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...Product Life Cycle – Under Armour Jenifer Miles BRM / 353 April 18, 2016 Ms. Queen Mack Product Life Cycle – Under Armour Under Armour, an athletic apparel company is approaching the maturity cycle of the product life cycle module. The company emerged in 1996 by creator Kevin Plank with a plan to provide a shirt with the helped regulate the bodies temperature and allow for better athletic performance. Mr Plank carried the growth of the company offering the unique designed "Cold Gear" t-shirt from the trunk of his car until they outgrew their in-home warehouse in 1998. ("The Business Of Under Armour", 2016). The company gained its initial public exposure when they were a part of the NFL based major motion picture, Any Given Sunday. As the company has achieved success, they have launched various athletic gear to accommodate multiple climate situations and various sports activities. Shoes and accessories have been built into the product line leaving the company at its peak but in seek of what to do to maintain continued growth. Under Armour Marketing Strategy Under Armour has successfully found their place in the athletic gear market and have also successfully set up both corporate and brand sponsorship with athletic teams and players. Getting to such a healthy place in the market has taken the company 20 years but the next step is to avoid a decline and seek continued growth. Obtaining this increase will take the company implanting new marketing...
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...Jake Phillips Case Study 1 Financial Reporting and Analysis Under Armour Inc. Under Armour is a sports clothing and accessories company. The company is a supplier of a wide range of sportswear and casual apparel mainly focusing on hi-tech sportswear for professional athletes. It has now broadened its horizons and Under Armour began offering footwear in 2006, it continues to expand its offerings. The company was founded on January 26, 1996 by Kevin Plank, a former University of Maryland special team’s captain for the university football team. Plank and co-founder Jordan Lindgren, also a former University of Maryland Football player, began their business from Plank's grandmother's basement in Washington, DC. Plank, who got tired of having to change out of the sweat-soaked T-shirts he wore under his jersey, noticed that his compression shorts stayed dry. This was the inspiration to make a T-shirt using moisture-wicking fabric for athletic performance. I chose Under Armour because as a former athlete I wore Under Armours’ apparel since about 2002. I have done some research on them before but I never actually went through the financials. Being from Maryland I thought it would be a good fit for me. From 2009- 2010 Total assets went up by nearly $130 million and equity went up by nearly $100 million. Net revenues increased by 24.2% or $207.5 million. Net income increased by almost $22 million. Under Armour’s Independent Auditor PricewaterhouseCoopers LLP issued...
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...Under Armour: Working to stay on Top of Its Game The following is an in-depth analysis of the company Under Armour. It has been one of the fastest growing productions, along with one of the top runners in the athletic apparel industry. The future of Under Armour remains unclear, but hopeful. There are many questions and issues that founder Kevin Plank and his executive leadership team must consider as the company moves forward; but analysts believe that the demand for Under Armour’s apparel products remain strong. Nike, Adidas, and Columbia Sportswear are all frontrunners against Under Armour in the industry. The first section of this report will cover an overview of the trends in, economics, political/legal, social/cultural-global, technology, and demographics. Economics Under Armour Company has been growing substantially. In 2008 its gross profit was $353,041, in 2009 it was $410,125, and in 2010 it only rose higher to $530,507. Its new income from operating expenses went up as well. In 2008 it was $38,229, in 2009 it was $46,758, and in 2010 it was $68,447. In North America and Canada, Under Armours net revenue in 2008 was $692,388, in 2009 it was $808,020, and in 2010 $997,816. In foreign countries it inclines as well. In 2008 Under Armours net revenue was $32,856, in 2009 it was $48, 391, and in 2010 it was $66,111. If the company follows this trend its profits are simply going to rise. Political/Legal The political and legal environment of Under Armour is greatly...
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...Under Armour Case Study Source: Hogan, 2013 Table of contents Detailed Timeline 3 Business and Corporate Level Planning 4 Brief Summary of the Company Situation in their Competitive Environment, Issues they Face and Clear Problem Statement to Analyze 6 Key Leadership 8 Types of innovation and Evidence of Entrepreneurship 10 Global Presence and Effects 11 Ethics - Examples of Social Consciousness/Corporate Social Responsibility 12 Responsible Wealth Creation 14 Engagement and Plan Alignment & Corporate Culture 15 Wild Card 16 Internal Analysis 17 External Analysis 20 SWOT Analysis 24 Recommendation 27 Bibliography 33 Appendix 37 Team Member Roles 46 Detailed Timeline It all started in 1995 when Kevin Plank, the special teams captain on the University of Maryland football team, noticed that the cotton T-shirts he and his teammates wore underneath their pads were always soaked and filled with sweat (Under Armour, 2012). “There has to be something better,” he believed (Under Armour, 2012). That statement soon launched the performance apparel industry (Under Armour, 2012). That statement also became Under Armour’s generic strategy, which was to develop a better product than there was in the market. While Plank was perfecting his t-shirt after he graduated, he needed funds to launch his apparel line, so he maxed out his credit cards to the tune of $40,000 and set up a company in his grandmother’s basement in Washington, DC (Under Armour, 2012). In...
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...UNDER ARMOUR: CASE ANALYSIS Under Armour is a company based in the United States, best known for its introduction of form-fitting, moisture-wicking clothing designed to be worn under sportswear. Founder Kevin Plank was a football player with the University of Maryland who got tired of having to change out of the sweat-soaked T-shirts he wore under his jersey. This was the inspiration to make a T-shirt using moisture-wicking fabric for athletic performance. The company is a supplier of a much wider range of sportswear and casual apparel. After creating and improving his first product he sold it to his first football team, Georgia Tech. After this the company expanded to include many NCAA football teams, several NFL teams and is starting to leak into other sports and other markets around the world. In 2008 it expanded with the footwear and accessory product lines. Under Armour’s current mission, vision and values provide direction both operationally and strategically for the company. Under Armour’s strategy is to outperforming its competitors and achieving superior profitability through actions to gain sales and market share via more performance features, more appealing design, better quality or wider product selection. The goal is to achieve the competitive on the basis of differentiation features, such as higher quality, wider product selection, and added performance, value added services, more attractive styling, and technological superiority. The Under Armour brand is positioned...
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...Under Armour STEEP Analysis Socio Cultural: Due to, the global rising trend of quality awareness, and global health conscious of athletes and customers, they are more willing to pay for the quality product, regardless of its price with more expectation in enhancing their athletic performances and lifestyle .This is perfectly matched with the company as delivering superior unique, innovative quality products Then, company has to try to tailor the products to meet the needs. Technological: With the new technology software SAP enable the company to reach effectiveness in managing inventory and shipment to distributors. But still not enough in prospect for sufficient communication between rising number of distributors, therefore, company should introduce ICT and restructure the IT system to utilize forceful customer analysis for more operational efficiency. Economic: The growth in the sport performance apparel industry, together with rising in physical active consumers seems to be promising future for Under Armour. Nowadays, the economic recession in U.S., rising labor costs and material prices affect both local economy and international economy where the company operate in like China. Weakens of Euro and an Asian recession affect in the dropping in sales. Environmental: The innovative commodities of the company still less in environmental concern,due to raw material petroleum- based is involved in production process. Thus, company should pursue on environmental friendly materials...
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