Under Armour Case Study

1288 words - 5 pages

In order to beat its competitors, Under Armour Company can engage in market sensitive fresh product invention. New products are more likely to draw curiosity amongst the populations especially if they commensurate well with the prevailing trends (Hill & Jones 2009, p. 308).

UA concentrated on the outside-in (market responsive) approach to carry out its strategies. It is reported that it sourced unique synthetic materials and employed on field product development. This enabled it to create the performance apparel segment in the athletic apparel market.
Under Amour Company ventured into a market segment that was overcrowded, it had thousands of companies that competed against each other. Out of the many companies involved in the trade, the two most formidable threats seemed to be orchestrated by Nike and Adidas. These are two giant sports apparel and footwear, which pride themselves as having been long term veterans in the industry. Nike in particular was christened as the ultimate shoe and athletic apparel company with revenues of $18.6 billion, net income of $1.9 billion and more than thirty two thousand employees globally in the year 2008. This makes it the largest athletic shoe and apparel seller in the world. This company has seen major expansions in outlets throughout the world over the years. Adidas on its part has managed to build a powerful brand through its technological innovations and aggressive marketing where they spend up to thirteen per cent of their revenue besides offering high quality services. These scenarios seem to present Under Armour with a massive competitive disadvantage.
Through an inside-out perspective, Under Armour has been able to concentrate on the growth mission. Its mission is about building a better shoe, delivering performance to all athletes and entirely connecting to the new generation of athletes who run. UA was able to maintain its uniqueness and with time began to step into the toes of the market giants such as Nike and the Adidas. Nevertheless running shoe market was synonymous of customers with unrivaled loyalties. With the appraised athletic performance demonstrated by AU, it managed to offer Nike a run for its money in terms of market competition after nearly two decades. Not only did it improve its revenue amounts but also inventory levels.
Under Amour is currently employing different strategies in its bid of emerging as the world number one supplier of sports apparel and footwear. The company had a brand strategy, which allowed it to create legitimacy in marketing products to casual athletes. Its branding was not only dependent upon the established stars like Alfonso Soriano, Vernon Davis and Heather Mitts but also identifying the stars of the next generation. Consequently, Bob Sanders who was the NLF Defensive Player of the Year and Kimmie Meissner, who was a national woman’s figure skating champion added to the list. They also sponsored many events and programs to this effect. Such programs...

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