An External Environment Analysis

UA achieved early success in the compression performance niche industry. This success allowed them opportunities to expand into other sub-markets of the sports apparel industry and to experience large growth rates in an otherwise saturated market. Sustainability and continued growth are their main goals. UA wants sustain their competive advantages and continue to experience record growth rates. Competitors like NIKE and adidas are very large, established corporations in comparison to Under Armour. Both NIKE and adidas have created their own competitive compression performance lines which means that Under Armour's first mover advantages will be diminishing. Both of these industry giants have a much larger marketing budget than that of Under Armour. The economies of scale that NIKE and adidas possess could make it hard for Under Armour to continue diversification of products. The state of the current economy has triggered a decrease in consumer spending which could have continued effects on sales numbers in the months to come. (As shown in earlier post Under Armour has posted earnings and growth as recent as the second quarter 2009.) Brand image and strategic use of limited marketing dollars will be key in Under Armour's continued success.