Under Armour and the Sports Apparel and Footwear Industry in 2017

Published 29 Jan 2018
Reference 6367
Topic Strategy
Industry Sporting Goods
Region North America
Summary

The case takes stock of the competitive and financial situation of Under Armour in 2017. After becoming a $5 billion corporation and seeing its stock price shoot to over $100 in 2015, it sees an equally spectacular drop to $20 by January 2017. The case describes the origin and rapid ascent of Under Armour, its strategy and business model, the market for sports apparel and shoes in the US and worldwide, major competitors Nike and Adidas, the disruption of the retail environment for sports goods, and the arrival of platforms and eco-system competition.

Teaching objectives

The case studies the strategy, actions and business model of Under Armour, which in 20 years grew from a small niche in performance sports apparel to an international sports goods company spanning sports apparel and shoes. It allows analysis of the profit and power dynamics in the supply chain, the effects of retail disruption on the position of the competitors; the arrival of platforms (connected health) and the construction of eco-systems; the consequences of too rapid and unfocused expansion in the face of dominant competitors, and the formulation of scope and strategy options.

Keywords
  • sports apparel and shoes
  • competing against dominant players
  • niche company
  • retail disruption
  • platform competition
  • building an ecosystem
  • international expansion
  • corporate turnaround
  • expanding product scope
  • Q21718