Under Armour Analysis

1. Under Armour:
PEST and
Industry Analysis
Brian Teufel
MGT 490-004
Assignment #2
Professor McDermott
March 17, 2011

2.  Kevin Plank, the CEO of Under Armour developed
a blue ocean strategy
 Created Performance Apparel market – enhances
consumers performance while offering greater
comfort
 Total sales over $1.0 billion in 2010
 First-mover advantage has allowed UA to gain
70% of the U.S. market and about 15% of the
global market
 Performance Apparel has evolved from niche to
mainstream in terms of target market and
competition (Nike and Adidas)

3. Key Proof of Dependency Future Challenges
Dependencies
Innovation 1/4 of 3,900 employees Ratio likely to decrease as UA
in R&D branded stores continue to
open
U.S. Market 95% of sales come from International market
U.S. development
Performance 85% of sales come from Product development of non-
Apparel PA PA products
International Product suppliers mainly Diversify supplier locations as
Subcontracting from Asia costs and inflation increase in
China
Retailers 2 retailers make up Brand development and
about 50% of sales franchising
 Under Armour owns branded retail stores in 28 U.S. states (30+ stores) and 23
other countries (25+ stores).
- First UA branded retail store opened on November 1, 2007.

4. • Opportunities and Threats are ranked in terms of
importance separately; top five of each are ranked accordingly.
(1 = extremely important, 5 = Not very important.
Factor Trend Evaluation; Impact Rank in
O=Opportunity (1=Low; terms of
T=Threat 5=High) importance
Political - FDI policies T 2 -
Economic - Economic Recovery O 3 -
- Increase in cost of raw materials and T 5 1
resources; shipping costs
i.e. cotton, all man made fibers, and the
big one being OIL/GAS
- Growth of performance apparel O 5 1
industry (Domestic and International)
- Increase in interest rates T 2 5
- Inflation in China increasing T 3 4
- Chinese labor costs increasing T 3 3
Social - Consumers focus on quality, not price O 3 4
- Aging population and increase in O 2 -
physically active seniors
- Increase in physically active women O 3 -
- Consumers becoming more health O 3 -
conscious
- Obesity rates in U.S. T 3 2
- Sport participation is a key aspect of O 3 5
U.S. culture
- Increase in sports participation in O 4 2
emerging markets
Technological - Increase in e-commerce O 4 3
- Increase in m-commerce O 3 3

5.  FDI Policies - Some foreign countries have policies in place that prohibit
100% ownership of retail stores which poses threat to internationalization
 Chinese Labor Costs Increasing
◦ Costs of international labor is on the rise.
◦ Hourly compensation costs of manufacturing employees in China from
2002-2008 is shown below.
Year National Currency U.S. Dollar Basis
Basis (Yuan) (U.S. $)
2002 4.74 .57
2003 5.17 .62
2004 5.50 .66
2005 5.95 .73
2006 6.44 .81
2007 8.06 1.06
2008 9.48 1.36

6. Factor Comment
U.S. and International Economic Consumers have more disposable
Recovery income
Growth of Performance Apparel PA industry is on the rise and
industry shows no signs of slowing down
Chinese Inflation Chinese inflation is on the rise and
expected to continue to rise
Increase in Cost of Raw Cotton, Man-made fibers, are on
Materials/Resources the rise but GAS is the big factor
•The growth of the performance apparel industry
is the greatest opportunity.
•More Consumers = More Revenues

7.  Obesity rates in U.S. show people not physically
active
 Consumers focus on quality more than price
 Increase in physically active women
 Increase in health conscious consumers = more
exercise/physical activity
 Sport participation is a key aspect of U.S. culture
 Aging population and increase in physically
active seniors
 Increase in sports participation in emerging
markets

9.  Increase in e-commerce
 Increase in m-commerce (trend is to always
have digital connection)

10. Opportunity Rank in terms of Comments
importance (1; least
important, 5; most
important)
Growth of the performance 1 Protect products and
apparel industry (domestic the industry
and international)
Increase in sports 2 Marketing will be key
participation in emerging
markets (foreign markets)
Increase in commerce 3 Take advantage
(electronic and mobile)
Consumers focus on 4 Innovation and
quality more than price Differentiation
Sport participation is a key 5 Sport participation will
aspect of U.S. culture always be a key aspect
of U.S. culture

11. Threat Rank in terms of Comments
importance (1; most
important, 5; least
important)
Increase in cost of raw 1 Buy in higher
materials and resources, quantities; volume
shipping costs discounts
Obesity rates in U.S. 2 Marketing will be key
International labor costs 3 Explore new options
increasing for production
Inflation in China 4 Explore new options
increasing for production
Increase in interest rates 5 Keep debt as low as
possible

12.  Under Armour is in the extremely competitive performance apparel
industry which is defined as anything that is worn which enhances the
performance of the user.
 Performance apparel global sales = $6.4 billion in 2010 and is expected
to grow to $7.6 billion by 2014.
◦ In 4 years, the industry is expected to grow by 15%.
Participants in the PA Industry
Buyers/Buyer Groups Physically active and want to enhance their
performance, especially athletes. Groups
include both domestic sports teams,
international teams, and retailers
Suppliers/Supplier Groups Third Party Suppliers (100+)
Competitors Nike, Adidas, Columbia Sportswear
Substitutes Conventional apparel or no apparel
Potential Entrants Anyone is a possible entrant in this
industry because of the high growth rates,
especially organizations that produce
apparel, sportswear, or equipment.

13. Force High/Moderate/Low Underlying Drivers
(Strong or Weak)
Threat of New Entrants High Weak
Threat of Substitutes - Core Athletes = High Strong
- Non-Core Athletes =
Moderate
Bargaining Power of - Athletes and Teams Strong
Buyers = High
- Non-Core Athletes
= Moderate
Bargaining Power of Moderate Weak
Suppliers
Intensity of Rivalry High Strong

14.  With the expected growth of the performance
apparel industry, there will be new entrants in
the industry from all over the world.
 Most companies who enter the performance
apparel industry are unable to compete due
to existing brand loyalty and the high barriers
to entry.
◦ Examples include New Balance, Velocity, and Sugoi

15. Factor Under Armour
Lack of Direct Competition Exceptions include Nike and
Adidas
PA not essential to participate in UA products enhance
sports or physical activity performance and allow comfort
Potential Substitute Products Low
Switching Costs Low
 Substitutes are limited to conventional apparel or no
apparel at all.
 Core athletes have a large number of substitute
options to choose from.

16. Buyer/Buyer Group Bargaining Power Comment
Core Athletes High Exposure to the public and
Professional Teams builds relationships
Non-Core Athletes Moderate - Limited competition and
Non-Professional substitute products
Teams - UA’s products differentiated
from competition
Recreational Buyer - Consumers do not need
performance apparel to
compete or be physically
active
 The bargaining power of buyers depends on the
consumer’s skill level and the level of the team.

17. Factor Under Armour
Switching Supplier Costs Moderate
# of Different Suppliers Very High
Product Uniqueness Moderate
Third Party Suppliers Very High
 The use of third party suppliers allows performance
apparel companies to chose their suppliers based on
highest quality and lowest production cost.
 Third party suppliers have high bargaining power by being
able to choose the companies that they want to supply for.
◦ The best third party suppliers can select the company or
companies that treat them the best and provide the best
compensation.
◦ There are thousands of third party suppliers all over the world.

18. Factor PA Industry
# of Competitors High
Brand Loyalty High
Industry Growth Rate Extremely High
Quality differences between competitors Moderate to High
 Currently, the performance apparel industry is
growing rapidly at 15%; this allows rivalry to grow
rapidly as well.
 There is a high # of competitors but UA, Nike,
and Adidas make up the majority of the industry
due to a quality advantage over other
competitors.

19. Differentiation Innovation
Niche R&D
Enhance
Performance

20.  The opportunities for the performance apparel industry
outweigh the threats.
◦ Labor and gas costs are increasing but opportunities such as the
global growth of the PA industry, global increase in sport
participation, and increase in both e-commerce and m-commerce
outweigh the threats.
 Rivalry is extremely high in the performance apparel
industry.
◦ The competition between Nike, Adidas, and Under Armour is
fierce and it continues to heat up.
 Participants in the performance apparel industry must
always be aware of new entrants because the industry is
on the rise.
◦ Create high barriers to entry.
 Blue Ocean Strategy was the basis for Under Armour and it
allowed them to achieve success in the PA industry.
◦ Innovation, Differentiation, R&D, Creating Niche of performance
apparel that enhances performance while allowing comfort.

21. Under Armour:
Competitor and
Market Analysis
Brian Teufel
MGT 490-004
Assignment #2
Professor McDermott
March 17, 2011

24. Company PA Sales Total Sales PA sales as % % of sales
(in millions) (in millions) of total sales spent on R&D
Under Armour $853 $1,060 81% 33%
Nike $1,300 $19,014 7% 12%
Adidas $1,150 $11,990 9% 5%
Columbia $400 $1,484 27% 1%
Sportswear
Company
Sugoi $34 $85 40% 2%
PUMA $425 $2,862 15% 4%
Quiksilver $250 $1,834 14% 3%
North Face $300 $1,400 21% 3%
New Balance Private Private Private Private
Company Company Company Company

25. Competitive
Advantage
Low Cost Differentiation
• New Balance • Nike
• Columbia Sportswear • Adidas
Company • Under Armour
• Champion
Broad
Target
Competitive
Scope • PUMA
• The North Face
• Quiksilver
Narrow
Target

26. Price
Low High
•New Balance
Low
•Champion
•PUMA
Quality
•Columbia
Sportswear
•Quiksilver Company
•The North Face
High
•Adidas
•Nike
•Under Armour

27. 1% 2% Sales
4%
9% U.S.
Europe
20% Asia/Pacific
64%
Rest of North America and South
America
Africa
Australia

28. -UA = 4% -UA =5%
-Nike = (-6%) -Nike = 0%
-UA = 23.5% -Adidas = 7%
-Nike = 8% -Adidas = 2%
-Col. Sportswear = 13% -Col. Sportswear = 30%
-Adidas = 7% -Quiksilver = (-8%)
-Col. Sportswear = 22% -Quiksilver = 4%
-PUMA = (-3%) -PUMA = (-2&)
-Quiksilver = (-9%)
-PUMA = 22%
-UA = 0%
-Nike = 20%
-Adidas = 16%
-UA = 0%
-Col. Sportswear = 13%
-Nike = 20%
-Quiksilver = N/A
-Adidas = 14%
-PUMA = -3%
-Col. Sportswear = 10%
-Quiksilver = (-9%)
-PUMA = 22%

29. Company Core Competence/Competencies Core Competencies -
Weak/Moderate/Strong
Under Armour Innovation, Quality, R&D Strong
Nike Inspiration, Innovation, Strong
Brand Image/Loyalty
Adidas Innovation, Technology, Strong
Sustainability
Columbia Distribution, Outerwear Moderate
Sportswear
Company
Sugoi Quality, Bicycle-wear Moderate
PUMA Sustainability, Value, Moderate
International Football
Quiksilver Surfwear, Quality Moderate
North Face Innovation, Outerwear Moderate
Environmental Awareness
New Balance Footwear, Innovation, Customer Weak
Service
Champion Comfort, Quality Weak

30. Company Key Brands Product Scope
Under Armour Under Armour Apparel, Footwear, Accessories
Nike Nike, Nike Golf, Air Jordan, Apparel, Footwear, Sporting
Cole Haan, Hurley, Equipment, Accessories, Caps
Converse, Umbro, ect…
Adidas Adidas, Reebok, Taylor Apparel, Personal Care, Footwear,
Made Golf Sporting Equipment, Accessories,
Caps
Columbia Columbia Sportswear, Apparel, Footwear, Accessories
Sportswear Mountain Hardware, Sorel,
Company Pacific Trail
Sugoi Subsidiary of Dorel Apparel, Accessories
Industries Inc.
PUMA Puma, Cobra Golf, Tretorn Apparel, Footwear, Sporting
Equipment, Accessories
Quiksilver Quiksilver, DC, Roxy, Hawk Apparel, Footwear, Accessories,
Sporting Equipment
North Face Subsidiary of VF Corporation Apparel, Sporting Equipment,
Camping Equipment, Accessories
New Balance New Balance, Dunham, Apparel, Footwear, Accessories
Aravon, Warrior, Brine
Champion Subsidiary of Hanes brands Apparel, Footwear, Accessories

31. Company Target Market Market Power
(Low/Moderate/High)
Under Armour Male and female, anyone who wants to High
enhance performance and comfort
Nike Male and female, ages 18-35, physically High
active, athletes
Adidas Male and female, physically active, Moderate
athletes
Columbia Male and female, physically active, loves Moderate
Sportswear outdoor activities
Sugoi Male and Female, physically active, Low
loves biking and running
PUMA Male and Female, physically active, Moderate
loves soccer (international football)
Quiksilver Male and female, young adult (ages 15- Low
35), love warm weather activities
(surfing/skating)
North Face Male and female, young adult (ages 16- Low
35), love cold weather activity
New Balance Male and female, older adults (ages 35+), Low
love walking/running
Champion Male and female, hard working, Low
physically active, all ages

32.  Performance Apparel is defined as anything that
is worn which enhances the performance of the
user.
 New and existing companies are attempting to
break into the PA industry every day due to the
rapid growth.
 The top three companies in the global PA
industry include Nike, Adidas, and Under Armour
 Gross sales come from company owned stores
and third party retailers.
 Sell products of quality which enhance
performance while providing comfort to the user.

33. Global Performance Apparel Sales ($ billions)
10
8 7.6
6.4
6
Global Performance
4 3.3 Apparel Sales ($
2.8
billions)
2
18% Inc. 52% Inc. 15% Inc.
0
2002 2006 2010 2014
• The Performance Apparel industry has grown
rapidly in the past four years and it is expected
to continue to grow rapidly the next four years.

34. 15% 9% 22%
2%
4%
7%

35. Trend Opportunity/Threat Comment
Sales increase (15%+) Opportunity Will continue to grow
Quality over price Opportunity Consumers want value for their
money
Increase in technological Opportunity Compression apparel is currently
innovation the big thing in PA
People becoming more Opportunity Market to entire market, not
physically active particular segments
Increase in cost of raw Threat Find ways to negate such costs
materials/resources
Eco-friendly design Opportunity More consumers will buy product
and feel they are helping the
environment
Fashion friendly Opportunity Consumers feel better when wearing
something fashionable (esp.
women)
New competitors entering Threat Create high barriers to entry and
market superior product
Moving towards all ages Opportunity Market to entire market, not
(older generation) particular segments

36. Company Corporate Social Mission Marketing Vision/Strategy
Responsibility Statement
Under Innovation, Inspiration, Make all athletes -Athlete Be the world’s #1
Reliability, and Integrity better through Endorsements performance
Armour passion, science, -Commercials/ athletic brand
and the relentless Slogans (“Click
pursuit of clack” and “We
innovation must protect this
house”)
-Event and team
sponsorships
Nike Sustainability, Bring inspiration -Brand Image Experience the
Innovation, Quality and innovation to -Brand promotion emotions of
every athlete in the -Athlete and team winning and
world. sponsorships crushing the
competition.
Adidas Sustainability, Strive to be the -Brand Image Enhance social and
Innovation, global leader in the -Focus on env. performance
Environmental sporting goods international in the company
Awareness industry with sports marketing and the supply
brands built on a -Athlete and team chain, thereby
passion for sports sponsorships improving the
and a sporting lives of the people
lifestyle making our

37. Company Corporate Mission Marketing Vision/Strategy
Social Statement
Responsibility
Columbia Responsible Provide consumers -Increase on-line Continue to
business practices the greatest marketing internationalize
Sportswear balancing quality outdoor -Stick to what we and provide high
economic goals gear while keeping know and show quality products to
with social and them safe consumers outdoor
environmental advantage of enthusiasts
considerations products
Sugoi Innovation, Make excellent _Increase global Every garment that
Excellence, Value performance awareness of carries the Sugoi
athletic wear for brand name is still
bikers and various _Prove quality designed,
other activities and uniqueness developed, and
to consumers made in Vancouver,
Canada
PUMA Sustainability, Stay true to our -Sponsor PUMAvision- create
work towards a values; inspire the international a safer, more
more eco-friendly passion and talent football and peaceful, and more
world, global of our people cricket players creative world than
peace, Quality working in and teams we know today
sustainable, -Increase

38. Company Corporate Social Mission Statement Marketing Vision/
Responsibility Strategy
Quiksilver Touch people Become the leading Focus is social Maintain our core focus
worldwide and global youth apparel media and roots while bringing
improve quality of company our lifestyle message of
life, quality board riding,
independence, creativity
and innovation to this
global community
North Send famous athletes Never stop exploring -Goal is to Our passion is beyond
overseas and give increase brand setting records and
Face back as much as they awareness achieving fame, it's all
can; innovation; -Social about changing our lives
consumer-focused marketing and those people who
inspire us to aim for
extraordinary dreams
New New Balance Demonstrating -Word of Continue to give back to
Foundation; Make responsible leadership, mouth all communities and
Balance consumers value we build global brands -Athlete provide excellent
worth their money that athletes are proud sponsorships products to excellent
to wear, associates are consumers
proud to create and
communities are proud
to host
Champion Ethical business Anticipate what -Social media world-class consumer
practices, protect consumers want and -Athlete goods company with a
environment, quality innovate to meet those endorsements distinctive competence
needs in comfort, fit, in operating a low-cost
and value global supply chain

39.  Social media has impacted the PA industry
positively, increase in sales due to easier
communication between consumers.
 Consumers can give feedback (+ and -) in a
relaxed environment.
 Consumers can also socialize with other
consumers to discuss PA products.
 Marketing has been most effected by social
media with sites such as
Facebook, Twitter, Foursquare, and LinkedIn.
◦ PA companies can market to larger groups of consumers
at a much cheaper cost.

40.  Nike and Adidas are Under Armour’s primary
competition in the performance apparel industry.
 Nike and Adidas have jumped UA in total PA sales
even though PA accounts for only 7% of Nike’s and 9%
of Adidas’s total turnover.
 Under Armour would be the global leader in
performance apparel sales if they were as successful
internationally as they currently are in the U.S.
 Asia and North America are fueling growth in the
performance apparel industry with Europe also
growing.
 The performance apparel market is growing at a rate
of higher than 15% and it is expected to continue to
increase for the for seeable future.

41. Under Armour:
Internal Analysis,
SWOT Analysis,
Competitive Position, and
Conclusions/Recommendations
Brian Teufel
MGT 490-004
Assignment #3
Professor McDermott
March 17, 2011

42. Year PA Sales Total Net Total Net % of Net
(in Sales (in Income Income Income
millions) millions) from PA (in from PA
(in millions)
millions)
2006 $373 $431 $32.4 $39 83%
2007 $513 $607 $40.5 $52.6 77%
2008 $579 $725 $31.5 $38.2 82%
2009 $652 $856 $38.2 $46.8 82%
2010 $853 $1,064 $55.1 $68.5 80%
• Under Armour’s PA sales and net income have increased every year since 2006.

43. $1,200.00
$1,000.00
$800.00
Licensed Revenue
$600.00 Accessories
Footwear
$400.00
Performance Apparel
$200.00
$0.00
2006 2007 2008 2009 2010
• On average, around 80% of Under Armour’s net income comes from PA.

44. • All $ amounts are in millions
Year PA % inc. Foot % inc. Access- % inc. Licensed % inc. Total % inc.
% dec. wear % dec. ories % dec. Revenue % dec. Sales % dec.
2006 $373.2 - $26.9 - $14.9 - $16 - $430.7 -
2007 $513.6 27% $40.9 34% $29.1 49% $24 33% $606.6 29%
2008 $578.9 11% $84.8 52% $31.5 8% $30 20% $725.2 16%
2009 $651.8 11% $136.2 38% $35.1 10% $33.3 10% $856.4 15%
2010 $853.5 24% $127.2 (7%) $43.9 20% $39.4 15% $1,063 19%
• Footwear sales increased every year from 2006-2009 but decreased by 7% in 2010.
• PA and accessories sales have increased every year; PA had a huge increase of 24%
from 2009 to 2010.

45. Year N.A. Sales % inc. % of Total Foreign % inc. % of Total
(in millions) % dec. Sales Sales % dec. Sales
2006 $415 - 100% $0 - 0%
2007 $582.5 29% 100% $0 N/A 0%
2008 $692.4 16% 95% $32.9 100% 5%
2009 $808 14% 93% $48.4 32% 7%
2010 $997.8 19% 91% $66.1 27% 9%
• International sales have increased every year since 2008 but UA is still heavily
reliable on North America for about 90% of their total sales.

46. Asset Distribution Cash and Cash
Equivalents
Accounts Receivable
12%
30%
11%
Inventories
15% Property and Equipment
32%
Other
Asset $ in Millions
Cash and Cash Equivalent $203.870
A/R $102.034
Inventories $215.355
Property and Equipment $76.127
Other $77.992
Total Assets $675.378

47. 200, 5%
Factory House and
Specialty Stores
900, 23%
Distribution Facilities
2200, 57%
600, 15%
Research and
Development
Other
# of Employees, % of Total Employees
• Under Armour has a total of 3,900 employees.
• Factory House and Specialty Stores employees are increasing rapidly because
UA is opening more branded stores.
• Almost ¼ of UA’s employees are devoted to research and development.

48. Strength Impact (1=Low; 5=High)
Brand Loyalty 4
Brand Equity 5
Core competence in Innovation 5
High Quality Apparel 4
Increase in Sales Every Year 3
Wide Range of Apparel 3
Athlete and Team Sponsorships and Endorsements 3
Very Intelligent and Efficient R&D Team 4
Weakness Impact
Small Total Sales and Net Income compared to Nike and Adidas 4
Heavily Dependent on Domestic Market; Small International Presence 5
High Prices 3
Not a Synergistic Marketing Campaign 3
Heavily Dependent on PA for Sales (80%+) 4
Target Male Market more than Female Market 2
27% of Sales come from 2 Distributors; Dick’s and The Sporting Authority 4

49. Opportunity Impact
(1=Low; 5=High)
Economic Recovery 3
Growth of PA Industry (Domestic and International) 5
Consumers focus on Quality, not Price 3
Aging population and increase in physically active seniors 2
Increase in physically active women 3
Consumers becoming more health conscious 3
Sport participation is a key aspect of U.S. culture 3
Increase in sports participation in emerging markets 4
Increase in e-commerce and m-commerce 4
Threat Impact
FDI Policies 2
Increase in cost of raw materials and resources; shipping costs 5
i.e. cotton, all man made fibers, and the big one being OIL/GAS
Inflation in China Increasing 3
Chinese Labor Costs Increasing 3
Obesity Rates in U.S. 3

50. Rank in respect to entire Factor S/W/O/T
SWOT Analysis
1 Core Competence in Innovation S
2 Increase in cost of Raw Materials, Resources, T
and Shipping Costs . . . OIL/GAS!!!!
3 Brand Equity S
4 Heavily Dependent on U.S. Market; Small W
International Presence
5 Growth of PA Industry O
6 27% of Sales come from 2 Distributors W
7 Heavily Dependent on U.S. Market for PA Sales W
8 High Quality Products S
9 Increase in Sports Participation in Emerging O
Markets

51. Competitive
Advantage
Low Cost Differentiation
Broad
Target Moving Here
Competitive
Scope
Narrow
Target
Started Here
• UA is moving from niche to mainstream
in an attempt to compete with Nike and
Adidas on other product lines (footwear and
accessories) other than performance apparel.

52. Market Share
High Low
•Performance
Apparel
High •Footwear
Star Question
Mark
•Accessories
Market
Growth
Low Cash Cow Dog

53. • UA creates value for the consumers and gains its competitive advantage
against the competition primarily through technology development.
• Innovation is what made UA what it is today, and Innovation is the
key for future success.

54. Primary Activities Weak/Moderate/Strong Under Armour
Inbound Logistics Moderate Third Party
Operations/Manufacturing Moderate Third Party
Outbound Logistics Moderate Third Party
Marketing and Sales Moderate Currently, UA has many
sponsorships and endorsements but
no synergy in marketing plan
After-Sale Service Strong UA has great reputation for
customer service and after-sale
service
Support Activities Weak/Moderate/Strong Under Armour
Firm Infrastructure Strong UA is structured very well and
has great company culture
Human Resources Moderate UA is limited by only having
Management 3,900 employees but they hire
and train very well
Technology Development, Very Strong Innovating and producing
Engineering technologically advanced
products is what UA does
Procurement Moderate Third Party

55. Component Comment
Innovation UA is extremely reliant on producing
innovative products that will continue to
impress their consumers and hold on to
high brand equity and brand loyalty
Market Development UA is really focused on selling their
products to emerging markets; 90%+ of
UA’s products are sold in the U.S.
Market Penetration UA would love to improve their market
share in the U.S. for PA and improve their
footwear and accessories sales as well
Product Development UA is devoted to continue to introduce
new products to the U.S. and also other
emerging markets around the world
Research and Development UA plans on continuing to produce new
and technologically advanced products
which are superior to the competition

56. Strategy Products, Market Under Armour
Market Penetration Existing Products, Very Strong Existing products
Existing Market are high quality and UA holds
majority of existing market (U.S.)
- Continue increasing U.S. market
share
Market Development Existing Products, Strong Existing products are
New Market high quality but UA needs to
increase market share in
international and emerging markets
Product Development New Products, Very Strong All new products
Existing Market are technologically advanced from
previous products
-U.S. market receives new products
extremely well (Loves Innovation)
Diversification New Products, Weak Very difficult to
New Market introduce new products into new
markets without having a decent
market share of existing products

57. 1 = Lowest Level of Effort
4 = Highest Level of Effort
Existing Products New Products
2 3
Existing Market
Market Penetration Product Development
4 1
New Market
Market Development Diversification
• UA is focused on all of these strategies but they
must prioritize according to what will achieve them
the greatest amount of success and what will put them
in the best position to grow in the future.

58.  Domestic Sponsorships/Endorsements
Athlete/Team Association/Sport Type of Deal
All Teams NFL Official supplier of Footwear
Auburn, Boston College, NCAA Official Outfitter
Maryland
Brandon Jennings NBA Endorsement
Lindsey Vonn Skiing Endorsement
Tom Brady NFL Endorsement
Michael Phelps Swimming Endorsement
Hunter Mahan PGA Endorsement
Cam Newton NCAA/NFL Endorsement
 International Sponsorships/Endorsements
Athlete/Team Association/Sport Type of Deal
Tottenham Champions League PA and Accessories Provider
Hockey Canada National Team Official Outfitter
Hanover 96 Bundesliga PA and Accessories Provider
All Teams Welsh Rugby Union PA and Accessories Provider

59.  PA sales and overall sales have increased every year
since Under Armour has been founded.
 PA sales account for more than 80% of total sales.
 International sales account for less than 10% of sales
but they have been increasing slightly since 2008.
 Under Armour is attempting to make a push into
international and emerging markets.
 The two main strengths for Under Armour are its core
competence in innovation and its brand equity.
 UA is moving from niche to mainstream in an attempt
to compete with Nike and Adidas on other product
lines (footwear and accessories) other than
performance apparel.

60.  Under Armour’s primary focus should be to
increase their U.S. market share in other products
such as footwear and accessories while
maintaining market leadership in PA.
 Under Armour should move into international
and emerging markets with caution to assure
they do not expand too quickly.
 Under Armour needs to continue to provide value
to consumers through innovation and research
and development.
 Under Armour needs to integrate their marketing
plan and make sure than all sponsorships and
endorsements contribute to the value of the
brand.