Case Analysis
MGTOP 491
Professor: Dr, Arthurs
Date:
Individual Case analysis: Under Armour: working to stay on top of its game
Overview
Under Armour, was founded by Kevin Plank, in 1996, one of the major sports clothing and accessories companies in all over the world. They are a supplier of a wide range of sportswear and casual apparel mainly focusing on high technology sportswear for professional athletes. Depending on the high technological and differentiated product lines, Under Armour has dramatic growth rate from 2000 to 2007. In addition, it is supplying over 100 NCAA division 1A football program and 30 NFL team, and opened self-owned retail and outlet stores in 2007. As the result, they had 43 present of the total U.S. performance apparel business sold sporting goods stores, even higher than other two main competitors which Nike and Adidas. Under Armour has 93 percent of sale in U.S. market and 84 percent of sale on apparel; plus international markets and other product lines, it totally profit 0.61 billion in 2007. By comparing with Nike and Adidas in the same year, Nike grossed 18.6 billion and Adidas 15.6 billion. The consequence, Under Armour mostly focuses on the domestic market and apparel but neglects the international market and lack diversification on their product. Although they won the sale in domestic market and apparel in this battle, their revenue was much less than Nike’s and Adidas’s which they lose in the entire market and products in sports clothing and accessories domain. Moreover, Under Armour does not have a patent on any of the materials used in its products; it creates the most critical issues, which lack of proprietary product rights. As the result, Under Armour is facing the problem on losing the international market, diversifying product lines and protection on their technology. If Under Armour still wants to stay on top of its game, they have better to overcome those problem.
Recommendation #1: Under Armour should primarily patents their
Professor: Dr, Arthurs
Date:
Individual Case analysis: Under Armour: working to stay on top of its game
Overview
Under Armour, was founded by Kevin Plank, in 1996, one of the major sports clothing and accessories companies in all over the world. They are a supplier of a wide range of sportswear and casual apparel mainly focusing on high technology sportswear for professional athletes. Depending on the high technological and differentiated product lines, Under Armour has dramatic growth rate from 2000 to 2007. In addition, it is supplying over 100 NCAA division 1A football program and 30 NFL team, and opened self-owned retail and outlet stores in 2007. As the result, they had 43 present of the total U.S. performance apparel business sold sporting goods stores, even higher than other two main competitors which Nike and Adidas. Under Armour has 93 percent of sale in U.S. market and 84 percent of sale on apparel; plus international markets and other product lines, it totally profit 0.61 billion in 2007. By comparing with Nike and Adidas in the same year, Nike grossed 18.6 billion and Adidas 15.6 billion. The consequence, Under Armour mostly focuses on the domestic market and apparel but neglects the international market and lack diversification on their product. Although they won the sale in domestic market and apparel in this battle, their revenue was much less than Nike’s and Adidas’s which they lose in the entire market and products in sports clothing and accessories domain. Moreover, Under Armour does not have a patent on any of the materials used in its products; it creates the most critical issues, which lack of proprietary product rights. As the result, Under Armour is facing the problem on losing the international market, diversifying product lines and protection on their technology. If Under Armour still wants to stay on top of its game, they have better to overcome those problem.
Recommendation #1: Under Armour should primarily patents their