It takes a significant amount of financial and human capital to develop products, manufacture them with quality and affordability, and push products into the appropriate distribution channels.
Late last year, Under Armour came out with its own fitness-related app, tapping into the social-network power of fitness in building up its brand.
UA is a relatively young company, having only gone public in And we look for the company to open more outlet shops overseas, in places like Europe and Latin America. There are always risks when you take on an entrenched industry leader. Still, the stock could start to look a lot cheaper quickly if earnings can maintain their current momentum.
Research shows customers also buy based on brand recognition and association. With Under Armour growing at such a blistering pace, it is constantly seeking ways to enlarge its addressable market, so as to ensure continued success.
With this in mind, UA started spending huge dollars to sign some of the best athletes in the world to represent its brand. And Under Armour recently beat out Adidas for the No. Delivered twice a week, straight to your inbox.
Thus, Under Armour will need to stay creative in its approach. Or will the explosive growth continue for several more years to come, rendering this a worthwhile entry point?
It faces the challenge of competing against long-standing industry giants such as Nike and Adidas. From the beginning, it attacked certain segments, forcing its competitors to play catch-up.
UAthe challenge of building up its athletic apparel business was especially fierce, given the competitive pressures of facing off with a decades-old dominant rival. UA was able to use that early success and brand recognition to create other products, but it took time and investment to expand.
Competition in the Industry While there are countless numbers of athletic apparel companies that compete with UA in certain market niches, only a few companies have the sheer size and established distribution channels to compete across all the product lines UA offers.
Technology is just one way Under Armour is reaching out to young athletes. This could prompt Under Armour to go after more proven, household names in the sporting world e.
The company is also targeting kids more than ever, increasing its SKUs in this small but important category. Although it does not possess the same diversification of products or the international market penetrationUA has been successful in nearly every industry subsection it has entered.
Trading Center Want to learn how to invest? Power of Suppliers Suppliers in the athletic apparel industry often sell materials to competing companies. But last year, its international business exploded higher, more than doubling from levels. Its product development and marketing techniques prove UA has been on the front line of changing competitive dynamics in its industry.
This is a much more subjective area and may be more susceptible to other brands becoming popular. UA manufactures and markets cutting-edge clothing, sporting goods and accessories. This is particularly true in areas such as basketball and golf gear, where the company currently has only limited exposure.
Larger buyers obtain cheaper prices from these suppliers by ordering larger quantities than smaller companies.
NIKE could exert its power in many ways, from outbidding the company for endorsement deals to securing cheaper sourcing plants in emerging markets. Style and fashion trends also play a significant role in the industry.
That has not been the case historically, with the company, most notably, using acquisitions to shore up its online presence.According to our analysis a competitive rivalry within the industry, bargaining power of customers and threat of new entrants are the three key forces which have potential to disrupt Under Armour’s growth story.
In UA’s Forward-Looking Statements – “changes in general economic or market conditions that could affect consumer spending and the financial health of our retail.” and organization(s) knows where it stands with respect to its environment.
Key Success Factor / Strength Measure Industry and Competitive Analysis: Under Armour Last. Breaking into an industry with well-established players is never an easy thing, and for Under Armour (NYSE: UA), the challenge of building up its athletic apparel business was especially fierce, given the competitive pressures of facing off with a.
Analyzing Porter's Five Forces on Under Armour (UA) been on the front line of changing competitive dynamics in its industry. UA's strategic management decisions prove its desire to be the. SWOT Analysis The SWOT analysis provides a clear summary of the strength, weaknesses, threats, and opportunities facing Under Armour.
This analysis provides an in-depth combination of the internal and 18 external environment surrounding Under Armour on a company level, and the entire industry. (see Appendix 5 for SWOT.
Under Armour: A Short SWOT Analysis Justin Hellman | July 13, Under Armour (UA) has been one of the best growth stocks this decade.Download