RESEARCH ANALYSIS UNDER ARMOUR INC

His inspiration to create a sweat wicking shirt for players came from growing tired of changing his sweat dripped T-shirts which he wore under his jersey (Logomyway. com, 2017). With a keen observation he made a realization that the shorts worn during the game were dry and did not get sweaty like the under-shirts. Therefore, he got the desire to create a sport wear that would solve the problem (Logomyway. com, 2017). While making his first apparels for business at his grandmother’s house, he initially intended to call the company ‘heart’, which he intended to make the wearer feel as if they were wearing their heart. However, due to lack of a trademark for the name, his application was denied (Feloni, 2015). Later on, with a new name and trademark, he applied once more.

He was sure and optimistic about the applications since he like the name, 'Body Armor’. However, it also failed. This recent invention from the largest performance and Innovation Company is the biggest yet in the industry. These products have stood out has the best yet in the sports performance industry making Under Armour Inc among the biggest and most influential performance companies in the world. (Feloni, 2015). Despite the challenges faced during his company’s growth, Kevin has so far managed to tell a success story that inspires belief, hard work and motivation in whatever one aspires to get. The company came to the spotlight for the first time when Us Today’s front page had Jeff George’s photo. With the company headed for greatness, it received an order that forever changed its destiny.

The Warner Brothers a film industry contacted Kevin with an offer to make outfits for their two upcoming movies. These movies stared big names in the screen among who were Jamie Fox. With the profits made Plank made another step towards the growth of his company. He bought an ad in a magazine, ESPN The magazine. Most of the products from Under Armour are sold through wholesale channels. This channels are inclusive of the national and regional chains that deal with sports products. In the sporting performance industries the suppliers with the materials required by the various companies often sell to the competing ones. This way they ensure that they get a good deal with the buying company. Nike is a larger company compared to Under Armour Inc, therefore, they get most of the materials in competitions.

Under Armour does this through calculations that determine the profits made from a product and therefore, enabling the company to change prices of the products. It also gives the seller a view of the profits made and how to maximize them. To ensure demand of products branding and advertising it is important. There are factors that affect the consumer responsiveness to a product among them is price. A set price for a product can encourage a consumer either to purchase it or not, therefore, a company needs to set prices that allow them to gain responsiveness and product demand while at the same time increasing their profits (Woodruff, 2018). These factors affect the elasticity of the products from Under Armor since demand for the products is minimized (Strider, 2016).

Every business must have production costs they are the factors that influence the growth and increase in profits for the company. They can be defined as the expenses that a company or business has to accrue to afford the processes of manufacturing or service delivery. Hence, for a cost to be termed as a productions it needs to have some influence on the processes that ensure the running and working of an industry (Staff, 2015). There are factors that influence the cost of production for a company. Over the years this company has been a huge competitor against Under Armour (logomyway. com, 2017). However, other companies such as Adidas which has seen a rapid growth after its deteriorating performance in the years before 2015.

In 2015, the company made changes that were expected to show a turnaround in their growth and they are really on the rise. Another company is Puma, this German company has been a stiff competitor against Adidas but poses a threat to Under Armour too. When the competition has weighed them off the company has freedom to leave the market. When there is a perfect competition, the market is offers a variety of products for a consumer to choose from. Therefore, each company involved needs to come up with perfect marketing skills that are catchy and attention seeking. This affects the market by offering prices that keep a competitive nature and looking out for the interests of the company (Trefis, 2017). In the case of raw materials, among these companies, the company that gets cheap supplies is able to make their prices cheaper.

Those that are on demand since they are bound to increase the company’s sales and profits. With a high competition, Under Armour should focus on uniqueness and quality. To attain and keep customers there is need to supply them with products that they need. Hence, the company’s aim is to keep its sales intact and on the market. By selling goods that the consumers need its production, sales and profits will be on the rise (Binns, 2014). In 2014, Under Armour made the longest deal with the University of Notre Dame to provide its athletes with uniforms and other necessary equipment. This deal was to last 10 years from the year of the agreement. Over the years the company has made major strides in the Sports industry by making deals with the big and the mighty.