Submitted by: Submitted by ahump
Views: 177
Words: 2095
Pages: 9
Category: Business and Industry
Date Submitted: 11/23/2013 03:03 PM
Background
Kevin Plank a University of Maryland football had a need for performance
apparel that was engineered to keep him cool, dry, and was light weight. Seeing
no other products on the market that met this quarter he decided to make his own
performance apparel and the company we now know as Under Armour was born.
In 1995 Kevin Plank was able to take newly available moisture-wicking, polyester-
blend fabrics to create tighter fitting shirts and undergarments that would make
it cooler and more comfortable to engage in strenuous activities. With this new
product and the help of Kip Fulks, and Scott Fulks Kevin formed KP Sports and
began selling his products to athletes and sports teams. In 1998 the company was
able to secure a small business loan and began to grow its product offerings to
include high-tech undergarments tailored for athletes in different sports including
hot and cold weather sports. In 2000 major retailers started selling KP Sport’s
apparel and sales began to grow rapidly with revenues reaching $5.3 million. For
the next 11 years the company continued to grow, increasing both product offerings
and revenues. In 2005 KP Sports changed its name to Under Armour and became a
public company with an initial public offering of 9.5 million shares.
The five-forces analysis for Under Armour consists of five forces that range from
low to high in competitive intensity. The five forces are rated in order from most
competitive, to least competitive. The most competitive force Under Armour
faces is rivalry within the industry. Under Armour faces intense competition from
companies such as Nike and Adidas as well as newer players. Nike and Adidas have
considerably larger resources at their disposal and are making a play within the
performance apparel market to gain market share in the industry. These larger
companies could leverage their strong brand recognition and...