Outsourcing
Most all of Under Armour’s products are manufactured by unaffiliated manufacturers. They have 23 primary manufacturers located in several different countries. These manufacturers are required to adhere to Under Armour’s strict code of conduct for suppliers that can be found on their website http://www.uabiz.com/corpResponsibility.cfm. The code of conduct details Under Armour’s expectations and requirements of firms employed to manufacture their products and includes policies on forced labor, child labor, harassment and abuse, discrimination, health and safety, hours of work, wages and benefits, overtime compensation, environment, and legal and ethical business practices. Under Armour also allows third-party licensees to purchase the rights to use the logo and distribute products under the brand image. The product, marketing, and sales teams work with these licensees in order to ensure that the brand image is upheld in their products.
Vertical Integration
Under Armour packages and distributes the majority of their products through two distribution centers in Maryland. They also operate an online retail store with a wide offering of their products. Control over the distribution centers is an example of backward vertical integration and allows Under Armour to directly effect customer satisfaction in making sure that the products are of quality and that they are packaged with care. This also helps UA operate their online store. The online store is an example of forward vertical integration. This creates a one-on-one relationship with the customer and can be used to strengthen brand allegiance as well as brand image. The online store also creates a better market visibility especially since their major competitors also operate online stores.

Both outsourcing and vertical integration have been used strategically by Under Armour to cut costs and create better market visisbility.