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Cooperative Environment

Suppliers

Under Armour (UA) uses specialty fabrics created by third parties. All fabrics sourced by manufacturers from suppliers are pre-approved by Under Armour. In 2006, most of the manufactured products were from Asia, Central and South America, and Mexico (www.underarmour.com). UA evaluates all manufacturers to find the best social compliance and financial strength for its company. Under Armour strives to find the best manufacturers for particular products that are appropriate for the types and fabrications. In order to reduce manufacturing cost, UA seeks vendors that perform all functions of manufacturing including providing the finished product. UA enters into contracts with manufactures, however, none are long term and have no requirements for UA to utilize them long term. Under Armour has a special reward shop located at the distribution facility in Glen Burnie, Maryland. This facility is stocked with fabrics in multiple colors and to be able to help build and ship products to customer in tight deadlines.

Resellers

Under Armour has 90 specialty stores. The majority of these facilities are located in Mexico, Latin America, and China, although the company does staff a quick-turn manufacturing element in-house for special orders and clients in the United States. Under Armour reaches consumers mainly through “store within a store” setups within major wholesale chains like Dick’s Sporting Goods and The Sports Authority. In addition fewer than a dozen Under Armour outlet shops are run by the company itself. Outside of specialty stores there are numerous resellers of UA products. Basic requirements for all potential dealers are as follows: a sporting goods dealer with a retail store front selling to individuals and teams for at least a year (www.underarmour.com).

Competitive Environment

Nike

Sports giant Nike is Under Armour's greatest rival, with 7% of the U.S. sports apparel market, compared with less than 3%...