C. Industry & Competition
Under Armour, Inc. is engaged in doing business in following segments.
• Branded performance apparel
• Footwear
• Accessories
• Connected fitness
It had a revenue of $4.8 Billion year ending 2016. For doing industry analysis we used Mergent Online. To our surprise, Under Armour and its main competitors were classified under different industry categories based on SIC and NAICS classifications.
In order to do a meaningful comparison, we identified companies doing business in similar segments as Under Armour. The main competitors are described below:
NIKE Inc - American multinational company based at Oregon. It is the world’s largest sportwear company with revenue of $34 Billion
Adidas AG – The largest sportswear
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Moreover, to create the type of brand image and recognition as well as customer loyalty that Under Armour has generated is a difficult task that will require time, effort and capital. Overall, these factors make it difficult for the new entrants to enter this sector of the industry. However, the threat is still there because some fashion brands also make sports apparel. Any existing large and recognized clothing brand can enter this sector and gain popularity after some research and marketing.
Rivalry among the existing brands:
It is because the rival brands are large names that hold significant influence and have a string brand image. The number of its main competitors is low but all of them are big players in the industry that hold significant clout. So, the competition for market share is always intense among the existing players. These brands offer similar product quality and also have an impressive presence in the market. Based upon these factors the rivalry among the existing brands is Strong.
4. Key success factors
Technologically Advanced