Management
Under Armour
Under Armour’s entry into the apparel industry was unprecedented. With competitors such as Nike and Adidas, Under Armour was able to bring in new products that did not exist in the market and they recognized their name as first in the market. The advantages that UA had upon is its entry into the market was the introduction of new products. The introduction of compression shirts, heat gear and many other products that the biggest competitors such as Adidas and Nike did not have.
When UA came into the market for the first time, their products were the first in its market category. In 2009, UA controls 78% of the performance apparel market. This was because of the quality and technology used in the making of its products. The performance apparel market has big competitors such as Nike, Adidas and Puma. It will be impossible for UA to sustain its position and maintain its large market share. UA is a new company and its competitors have established their names in the market. UA can still control a significant of market share in its product category but when Nike and Adidas start making similar products, UA will lose control of the market.
Under Armour’s footwear line had a high profile launch but after the launch it did not perform as well as predicted. The footwear line shows that UA was ready to challenge Nike who are the leaders in the market. UA footwear line did not meet its expectations compared to its apparel launch. The apparel industry is easier for competitors to access but the footwear industry is much difficult to compete in. making footwear is difficult because there are different sports such as football, soccer, baseball and many others and it is important to create the best shoes to support the athlete.
Under Armour’s motivation for entering the market was to provide athletes with the best products in different whether conditions. UA entered the market the innovated products that competitors such as Nike and Adidas have not developed yet. UA had unique products and ideas and the company’s innovations is what drove them to enter the market. With the success from the apparel market, the company went on to develop new products to become a viable competitor in the market.
The recommendation I have for Plank is that UA is a company that is still striving to be the best in its market. The company has a lot of potential and it might take time for the company to establish itself as a global competitor. My recommendations is that UA should venture into popular sports. For instance, Nike and Adidas make most of their revenues from soccer. This is the most popular sport in the world and it will be better for the company to start investing the sport. The market for soccer is huge, bigger than any sport in the world with thousands of professional teams. Also, the company should focus on doing something they have a competitive advantage in. The company should not venture into different products to challenge competitors but rather gain a competitive advantage and progress slowly by improving their products and proving their quality to customers.
