Of course, innovation is at the heart of Under Armour's strategy, so you'll want to keep an eye out for opportunities to expand its innovative product line in the years to come.
We will also monitor the development of the activities of this relatively new company on the market in unexplored sectors in Asia, Europe and Australia.
The various partnerships that the group can set up with other major brands or chains, as was the case with the NBA, are also important growth signals to be analysed.
We will also check the good development of the online sales services of Under Armour products which can boost the results of the group.
Of course, the negative effects of competitors in this sector, including large, well-known companies, will also be monitored.
Finally, we will also follow the efforts made to increase the global awareness of this brand.
The Under Armour Group operates in the sportswear and accessories market, but also aims to broaden its target audience beyond "sportswear", i.e. clothing designed to enhance sports performance. Today, the Under Armour brand competes with the big market leaders: Nike, Puma and Adidas.
The Under Armour story began in 1996, when 23-year-old college football player Kevin Plank invented a particularly breathable jersey that could stay dry during training efforts.
"Under Armour" literally means "under the armour" and indicates the protection worn by football players. To create this innovative, sweat-wicking shirt, Plank used materials that at the time were used for the production of women's underwear.
Football has always been the core business of the Under Armour Group, which now controls 75% of the market for football apparel. In addition to this, Under Armour has a large market share in basketball shoes and running apparel. To compare it to Nike, it is enough to think that the difference in turnover between the two companies is "only" 2 billion dollars.
The marketing strategy has always been focused on sportswear. Many athletes wore Under Armour clothing at the Olympic Games, including American swimmer Michael Phelps.
Under Armour is also the technical sponsor of the Tottenham football team.
Photo credits: ©unitysphere/123RF.COM
Let's find out who the main competitors of the Under Armour group are in the current market with a quick presentation of the most important players in the sector:
First of all, the American group Nike, specialized in the manufacture of sports articles including shoes, clothing and sports equipment and is a direct competitor of Under Armour. The group makes more than half of its sales internationally and is currently the largest sports equipment manufacturer in the world with a turnover surpassing that of its competitors. It is also the world's leading football supplier.
Another serious competitor to consider for Under Armour is the Adidas Group which is a German company founded in 1949 by Adolf Dassler and which is specialized in the production of sports goods in Germany. This group has been the pioneer and leader for many years in the field of sporting goods and is now second only to the Nike group in this sector.
Finally, the Puma Group, which is also a German company, should also be taken into account. This specialist in the manufacture of sporting goods created in 1948 by Rudolf Dassler, the brother of the creator of Adidas. Until 2018, it was a subsidiary of the French group Kering. The brand is now known in more than 120 countries and is currently the number three in this sector.
After having made the tour of Under Armour's main competitors, we propose you to discover who are the main recent partners of this group. Let's discover two specific examples of strategic alliances recently put in place by the group.
In 2019, the Under Armour Group notably partnered with Virgin Galactic in a next-generation space apparel and footwear partnership as well as a training program to improve astronaut performance. Under Armour has become a technical spacewear partner for Virgin Galactic. One aspect of the partnership is the design of tailored suits and footwear for Virgin Galactic passengers and pilots, which is a complex mix of safety, utility, comfort and style. The group will also design physical preparation and recovery programs for astronauts based on improving mobility, strength, fitness, nutrition and sleep.
Another partnership was this time set up in 2018 with the Chinese tech giant Tencent. Thus, the group and the NBA signed an agreement with this company and thus were able to integrate this gigantic market. Indeed, let's remember that Tencent invests 150 million dollars each year in eSports, in a market that includes 400 million players who compete in matches in front of tens of thousands of spectators gathered in the rooms and followed online by millions of Internet users.
Let's take a moment to go over the main pros and cons that Under Armour has today.
The following are some of the strengths of this company:
Of course, Under Armour also has its weaknesses, which we'll get into in more detail now:
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