Microeconomics - Under Armour
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UNDERARMOUR_Thenderson_ECO201.docxUNDER ARMOUR Page | 2
UNDER ARMOUR
Tashia Henderson
Southern New Hampshire University
ECO – 201
September 16, 2018
Under Armour, Inc. is a developer, marketer, and distributor of branded performance, apparel, footwear and accessories of products that are sold worldwide and worn by athletes at all levels with a mission of “Under Armour Makes You Better”. In this paper, I will be providing a microeconomic analysis of Under Armour by analyzing different criteria and its standing in the athletic brand market. This analysis will focus on the supply and demand conditions, price elasticity of demand, costs of production, overall market, and; finally, is my recommendation based off information provided in this analysis.
How It All Started with an Idea
In 1996, Kevin Plank, a 23-year-old former University of Maryland special teams captain, turned an idea born on the football field into an industry that change the way athletes dress forever. After several sweat-soaked cotton T-shirts repeatedly during two-a-days, Plank created a solution that benefited from synthetic fibers that helps keep athletes cool, dry, and light in the most brutal hot conditions. Working from his grandmother’s basement in Washington D.C., Plank made his first team sale, and Under Armour generated $17,000 in sales.
In 1997, Under Armour introduced the ColdGear fabric, which keeps athletes warm, dry, and light in cold conditions, and then the AllSeasonGear line which keeps athletes comfortable between the extremes. By the end of 1998, Under Armour outgrew grandma’s and headquarters and a warehouse developed in Baltimore where the expansion journey begins into HeatGear, footwear, accessories, and connected fitness.
Under Armour currently focus on marketing and selling to consumers primarily for use in athletics, fitness, training, outdoor activities and as part of an active lifestyle. Products offering are for men, women, and youth with multiple price levels. In 2017, sales of apparel, footwear and accessories represented 66%, 21% and 9% of net revenues. (2017 Annual Report). It drives consumer demand by building brand equity and awareness that products deliver advantages to help athletes perform better.
References
HISTORY | Under Armour, Inc. (n.d.). Retrieved from http://www.uabiz.com/company/history
