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Company > Under Armour: Business Model, SWOT Analysis, and Competitors 2023

Under Armour: Business Model, SWOT Analysis, and Competitors 2023

Published: Mar 31, 2023

Inside This Article


    Under Armour is a renowned American sports apparel and accessories company that has gained significant popularity in recent years. This blog article aims to provide a comprehensive analysis of Under Armour's business model, SWOT analysis, and its competitors in the year 2023. By examining the strengths, weaknesses, opportunities, and threats faced by Under Armour, as well as its key rivals in the market, readers can gain valuable insights into the company's performance and its position in the highly competitive sports industry.

    What You Will Learn:

    • Who owns Under Armour and the key stakeholders involved in the company
    • The mission statement of Under Armour and how it guides the company's actions and goals
    • How Under Armour generates revenue and the strategies they use to make money
    • An in-depth explanation of the Under Armour Business Model Canvas and how it applies to the company's operations
    • The major competitors of Under Armour in the athletic apparel industry
    • A comprehensive SWOT analysis of Under Armour, highlighting its strengths, weaknesses, opportunities, and threats.

    Who owns Under Armour?

    Major Shareholders

    Under Armour, the popular American sports clothing and accessories brand, is publicly traded on the New York Stock Exchange under the ticker symbol "UA." As a publicly traded company, Under Armour has a diverse ownership structure with several major shareholders. These major shareholders are institutional investors, mutual funds, and individual investors who hold a significant stake in the company.

    One of the largest institutional shareholders of Under Armour is The Vanguard Group, an investment management company. As of the latest available data, The Vanguard Group holds approximately 19.5 million shares of Under Armour, making it one of the company's biggest stakeholders. Other notable institutional shareholders include BlackRock, State Street Corporation, and T. Rowe Price Associates, among others.

    Founder and CEO Ownership

    Kevin Plank, the founder and former CEO of Under Armour, also holds a substantial stake in the company. Plank, who started the company in 1996, remains one of the largest individual shareholders. Over the years, he has sold some of his shares but still owns a significant portion of the company. As of the latest available information, Plank owns around 15% of Under Armour's outstanding shares.

    Other Key Shareholders

    Aside from institutional investors and Kevin Plank, there are other individuals and entities that hold a noteworthy stake in Under Armour. Among them is the company's current CEO, Patrick Frisk, who also has a personal ownership interest in the company. Frisk, who took over as CEO in 2020, has been with Under Armour since 2017 and has played a significant role in the company's turnaround efforts.

    Additionally, Under Armour has various mutual funds and investment companies that own a substantial number of shares. These funds include Wellington Management Group, Fidelity Investments, and Capital Research and Management Company, to name a few.


    Under Armour's ownership is distributed among a diverse group of stakeholders, including institutional investors, mutual funds, and individual shareholders. Major institutional investors such as The Vanguard Group and individual shareholders like Kevin Plank play a significant role in the company's ownership structure. As Under Armour continues to navigate the competitive sportswear market, the ownership dynamics may evolve, but these key shareholders are likely to remain influential in shaping the company's future.

    What is the mission statement of Under Armour?

    The Mission Statement of Under Armour: Empowering Athletes Everywhere

    Under Armour's mission statement is to empower athletes everywhere. This bold and inspiring mission reflects the company's commitment to creating innovative products and experiences that help athletes perform to their full potential.

    Under Armour believes that every athlete has the potential to achieve greatness, and their mission is to provide them with the tools and resources they need to excel. The company is dedicated to designing and manufacturing high-performance athletic gear and apparel that enhance athletes' performance and endurance.

    Through their mission statement, Under Armour emphasizes the importance of empowering athletes of all levels and backgrounds. Whether it's a professional athlete striving for a championship or a beginner looking to improve their fitness, Under Armour aims to support and inspire athletes at every stage of their journey.

    Furthermore, Under Armour's mission extends beyond the products they create. The company is committed to fostering a community of athletes and providing them with opportunities for growth, motivation, and engagement. They organize events, sponsor athletes, and collaborate with sports organizations to create a network that amplifies the voice of athletes and encourages them to push their boundaries.

    Under Armour's mission statement also highlights their dedication to innovation. The company continuously pushes the boundaries of performance apparel and footwear, employing cutting-edge technologies and materials to enhance athletes' experiences. By staying at the forefront of innovation, Under Armour ensures that athletes have access to the best tools to achieve their goals.

    In summary, Under Armour's mission statement is focused on empowering athletes everywhere by providing them with high-performance gear, fostering a supportive community, and driving innovation. This mission reflects the company's commitment to helping athletes reach their full potential and live their passion for sports.

    How does Under Armour make money?

    Retail sales

    One of the primary ways that Under Armour generates revenue is through retail sales. The company operates both physical retail stores and an e-commerce platform, allowing customers to purchase their products directly. Under Armour offers a wide range of athletic apparel, footwear, and accessories, catering to various sports and fitness activities. By selling directly to consumers, Under Armour can capture a larger portion of the profits as compared to selling through third-party retailers.

    Wholesale distribution

    In addition to retail sales, Under Armour also generates revenue through wholesale distribution. The company partners with various retailers, including department stores, sporting goods stores, and specialty fitness retailers, to sell their products. Under Armour offers these retailers a selection of their merchandise at wholesale prices, allowing them to stock their stores and reach a broader customer base. This wholesale distribution channel helps Under Armour expand its market reach and increase brand visibility.

    Licensing and endorsements

    Under Armour leverages its strong brand image and reputation to secure licensing and endorsement deals. The company collaborates with professional athletes, teams, and leagues to endorse and promote their products. These endorsement deals not only generate revenue through direct partnerships but also serve as a marketing strategy, increasing brand awareness and driving sales. Additionally, Under Armour licenses its brand to other companies for the production and sale of products such as athletic equipment, accessories, and even lifestyle apparel.

    Connected Fitness

    Under Armour has also ventured into the digital space through its Connected Fitness segment. This division includes various fitness apps, such as MyFitnessPal, MapMyFitness, and Endomondo, which offer users personalized workout plans, nutrition tracking, and social features. While the apps are free to download, Under Armour monetizes this segment through advertising and premium subscriptions, which provide users with enhanced features and content. The Connected Fitness segment not only generates revenue but also provides valuable data and insights to drive product development and marketing strategies.

    International sales

    Under Armour has successfully expanded its presence beyond the United States and now operates in numerous international markets. The company generates revenue by selling its products globally through retail stores, e-commerce platforms, and partnerships with international retailers. By tapping into the growing demand for athletic apparel and leveraging its brand recognition, Under Armour has been able to establish a strong international presence, further diversifying its revenue streams.


    Under Armour employs a multi-faceted approach to generate revenue. Through retail sales, wholesale distribution, licensing and endorsements, Connected Fitness, and international sales, the company has built a robust business model that capitalizes on its brand strength and innovation. By continuously exploring new avenues and adapting to evolving consumer trends, Under Armour remains a key player in the competitive athletic apparel industry.

    Under Armour Business Model Canvas Explained


    The Business Model Canvas (BMC) is a strategic management tool that provides a visual representation of a company's business model. It helps businesses understand and evaluate various aspects of their operations, including key partners, customer segments, revenue streams, and cost structure. In this blog post, we will explore and explain the Under Armour Business Model Canvas to gain insights into how the company operates and achieves its success.

    Key Partners

    Under Armour's success can be attributed, in part, to its strong network of key partners. The company collaborates with various stakeholders to enhance its brand and deliver value to customers. Some of Under Armour's key partners include:

    1. Suppliers: Under Armour relies on suppliers to provide high-quality raw materials and components for its products. The company maintains close relationships with suppliers to ensure timely delivery and maintain product quality.

    2. Retailers: Under Armour partners with retailers worldwide to distribute its products. By leveraging partnerships with global retailers, the company reaches a wider customer base and increases brand exposure.

    3. Athletes and Sports Teams: Under Armour sponsors numerous athletes and sports teams, forging partnerships that help increase brand visibility and credibility. These partnerships also provide valuable feedback and insights for product development.

    Customer Segments

    Under Armour targets a diverse range of customer segments, focusing on athletes and fitness enthusiasts. The company's customer segments can be categorized as follows:

    1. Professional Athletes: Under Armour caters to professional athletes by offering high-performance apparel, footwear, and accessories specifically designed to meet their unique needs.

    2. Sports Teams: Under Armour provides customized uniforms and gear for sports teams, enabling them to perform at their best while representing the brand.

    3. Fitness Enthusiasts: Under Armour appeals to individuals who prioritize fitness and an active lifestyle. The company offers a wide range of products suitable for various sports and workouts.

    Value Proposition

    Under Armour's value proposition revolves around providing innovative, high-performance products that empower athletes to perform better. The company's key value propositions are:

    1. Performance: Under Armour's products are designed to enhance athletic performance, offering advanced features such as moisture-wicking fabrics, compression technology, and ergonomic designs.

    2. Quality and Durability: Under Armour prioritizes quality and durability in its products, ensuring they can withstand intense training and rigorous use.

    3. Brand Image: Under Armour is recognized as a premium brand associated with high-performance athletes and teams, appealing to customers who seek to align themselves with excellence.

    Revenue Streams

    Under Armour generates revenue through various channels, including:

    1. Direct Sales: Under Armour sells its products through its e-commerce platform and company-owned retail stores, allowing customers to purchase directly from the brand.

    2. Wholesale: The company also sells its products to various retail partners, including department stores, sporting goods retailers, and specialty stores.

    3. Licensing: Under Armour licenses its brand to third-party manufacturers who produce and sell products under the Under Armour name, expanding its reach and revenue potential.

    Cost Structure

    Under Armour's cost structure comprises several key components, including:

    1. Manufacturing Costs: The company invests in manufacturing facilities and incurs costs related to raw materials, labor, and production processes.

    2. Marketing and Advertising: Under Armour allocates a significant portion of its budget to marketing and advertising campaigns to enhance brand visibility and drive customer engagement.

    3. Research and Development: Under Armour focuses on continuous product innovation and invests in research and development to stay ahead of competitors and meet evolving customer needs.


    By examining the Under Armour Business Model Canvas, we gain a comprehensive understanding of the company's operations and strategies. Under Armour's strong network of key partners, diverse customer segments, value propositions, revenue streams, and cost structure all contribute to its success in the sports apparel industry. The Business Model Canvas provides a powerful framework for analyzing and optimizing business models, enabling companies like Under Armour to thrive and grow.

    Which companies are the competitors of Under Armour?


    Nike is one of the major competitors of Under Armour. Established in 1964, Nike is a global leader in athletic footwear, apparel, equipment, and accessories. With its iconic swoosh logo, Nike has built a strong brand presence worldwide. The company offers a wide range of products for various sports and activities, catering to athletes of all levels. Nike's extensive product line, innovative designs, and effective marketing strategies have allowed it to capture a significant market share in the athletic apparel industry. Constantly pushing the boundaries of performance and style, Nike remains a formidable rival for Under Armour.


    Adidas is another prominent competitor of Under Armour. Founded in 1949, this German multinational company specializes in sports footwear, apparel, and accessories. With a focus on innovation and performance, Adidas has established itself as a leading brand in the athletic industry. The company collaborates with top athletes and celebrities to create cutting-edge products that resonate with consumers. Adidas' commitment to sustainability and social responsibility also contributes to its popularity among conscious consumers. With its extensive global reach and diverse product offerings, Adidas poses a significant challenge to Under Armour's market share.


    Puma is a well-known competitor of Under Armour, founded in 1948. This German company designs and manufactures athletic and casual footwear, apparel, and accessories. Puma has a strong presence in various sports, including football, running, basketball, and golf. Known for its bold designs and collaborations with renowned designers and celebrities, Puma appeals to athletes and fashion-conscious individuals alike. The company's commitment to sustainability and ethical practices further enhances its appeal. With its global brand recognition and diverse product range, Puma competes directly with Under Armour in the athletic apparel market.


    While primarily focusing on yoga and athletic wear, Lululemon has expanded its product line to cater to a broader audience. Founded in 1998, this Canadian company emphasizes both performance and style in its products. Lululemon's high-quality fabrics and innovative designs have gained a loyal following among fitness enthusiasts and casual wearers alike. The brand's commitment to promoting an active and healthy lifestyle resonates with consumers. With its focus on women's activewear and its growing popularity among men, Lululemon presents a unique challenge to Under Armour's market position.


    Reebok, founded in 1958, is an American-inspired global brand known for its athletic footwear, apparel, and accessories. Over the years, Reebok has established itself as a reputable competitor in the athletic industry. The company collaborates with athletes, fitness professionals, and celebrities to create products that combine performance and style. Reebok's focus on fitness and training, along with its dedication to sustainability, sets it apart from other competitors. Despite facing challenges in recent years, Reebok remains a significant rival for Under Armour, especially in the realm of fitness-related apparel and footwear.

    Under Armour SWOT Analysis


    • Strong brand image and recognition: Under Armour has built a strong brand image over the years, known for its performance-driven athletic apparel and footwear. Its logo and tagline, "Protect This House," resonate with athletes and fitness enthusiasts, helping to establish a loyal customer base.

    • Innovative product portfolio: Under Armour continuously invests in research and development to create innovative products that meet the evolving needs of athletes. It has introduced cutting-edge technologies like UA SpeedForm® and Charged Cushioning® that enhance performance and comfort.

    • Diverse product range: Under Armour offers a wide range of products, including apparel, footwear, accessories, and equipment. This diversification allows the company to cater to various sports and fitness activities, appealing to a wider consumer base.

    • Strong distribution network: Under Armour has a robust distribution network that includes both brick-and-mortar stores and online channels. It has partnerships with major sporting goods retailers and operates its own e-commerce platform, enabling it to reach customers globally.


    • Limited global market share: Despite its significant presence in the North American market, Under Armour has struggled to gain substantial market share internationally. It faces tough competition from well-established rivals like Nike and Adidas, who have a stronger foothold in global markets.

    • Dependence on the North American market: A major portion of Under Armour's revenue comes from the North American market. This overreliance on a single region makes the company vulnerable to economic fluctuations, changing consumer preferences, and other market risks specific to that region.

    • Pricing strategy: Under Armour products are often perceived as being relatively high-priced compared to some competitors. This pricing strategy may limit the company's ability to attract price-sensitive consumers, especially during economic downturns.


    • International expansion: Under Armour has an opportunity to expand its presence in untapped international markets. By leveraging its strong brand reputation and investing in strategic partnerships, the company can penetrate new markets and increase its global market share.

    • Women's apparel and athleisure segment: The growing trend of athleisure and increasing female participation in sports present an opportunity for Under Armour to expand its women's apparel segment. By offering stylish and performance-driven products targeted at women, the company can tap into this lucrative market.

    • Technological advancements: Rapid advancements in technology, such as wearable fitness devices and smart fabrics, present opportunities for Under Armour to innovate and integrate technology into its products. By staying at the forefront of technological developments, the company can offer unique and differentiated products to consumers.


    • Intense competition: Under Armour faces fierce competition from well-established brands like Nike and Adidas, who have extensive resources and global market reach. These competitors constantly launch new products, engage in aggressive marketing campaigns, and have strong brand loyalty, posing a threat to Under Armour's market share.

    • Economic downturns: During economic downturns, consumers tend to reduce discretionary spending on non-essential items like sportswear. This can negatively impact Under Armour's sales and profitability, especially if it fails to attract price-sensitive consumers or adapt its pricing strategy accordingly.

    • Counterfeit products: As a popular brand, Under Armour is vulnerable to counterfeit products flooding the market. These counterfeit products not only harm the company's reputation but also result in revenue loss. Under Armour needs to be vigilant in monitoring and taking legal actions against counterfeiters to protect its brand integrity.

    Key Takeaways

    • Under Armour is owned by its founder, Kevin Plank, who started the company in 1996.
    • The mission statement of Under Armour is to make all athletes better through passion, design, and the relentless pursuit of innovation.
    • Under Armour primarily makes money through the sale of athletic apparel, footwear, and accessories to both individuals and sports teams.
    • The Under Armour Business Model Canvas explains the key elements of how the company creates, delivers, and captures value in its operations.
    • Under Armour faces competition from major athletic brands such as Nike, Adidas, Puma, and Reebok.
    • In terms of SWOT analysis, Under Armour's strengths include a strong brand image and innovative product offerings, while its weaknesses include limited diversification and challenges in international markets. Opportunities for the company include expansion into new product categories and emerging markets, while threats include intense competition and changing consumer preferences.


    In conclusion, Under Armour is owned by its founder, Kevin Plank, and remains committed to its mission statement of empowering athletes everywhere. The company generates revenue through various channels, including the sale of apparel, footwear, and accessories, as well as licensing and endorsement deals. By analyzing Under Armour's business model canvas, we can see that the company focuses on key activities such as product development, marketing, and distribution to create value for its customers. While Under Armour faces strong competition from companies like Nike and Adidas, it has successfully carved out a niche in the market by offering innovative and performance-driven products. Finally, conducting a SWOT analysis of Under Armour reveals its strengths, weaknesses, opportunities, and threats, ultimately highlighting the company's potential for growth and success in the athletic apparel industry.


    What is a SWOT analysis for Under Armour?


    1. Strong brand image and recognition: Under Armour is a well-known brand in the sports apparel industry, known for its innovative products and performance-focused approach.
    2. Technological advancements: The company has invested in technology, such as their UA Record app and connected fitness platforms, which helps them gather data and provide personalized experiences to customers.
    3. Wide range of product offerings: Under Armour offers a diverse range of products, including apparel, footwear, and accessories, catering to various sports and fitness activities.
    4. Sponsorships and endorsements: The brand has successfully partnered with high-profile athletes and sports teams, enhancing its credibility and visibility.
    5. International presence: Under Armour has expanded its global reach, establishing a presence in multiple countries, which helps in diversifying its revenue streams.


    1. Dependence on North American market: A significant portion of Under Armour's revenue comes from the North American market, making it vulnerable to economic downturns and market fluctuations in the region.
    2. Limited market share compared to competitors: Under Armour faces strong competition from established players like Nike and Adidas, which have larger market shares and more extensive distribution networks.
    3. Pricing strategy: Under Armour products are generally priced higher than some competitors, which may limit their appeal to price-sensitive consumers.
    4. Limited product differentiation: While Under Armour is known for its technological innovations, competitors are catching up and offering similar features, making it harder for the brand to maintain a unique selling proposition.


    1. Expansion into new markets: Under Armour has the opportunity to further expand its presence in international markets, particularly in emerging economies, where there is a growing interest in sports and fitness.
    2. Growth in athleisure and wellness trends: The increasing popularity of athleisure wear and the focus on health and wellness present opportunities for Under Armour to develop products catering to these trends.
    3. E-commerce growth: The rise of online shopping provides Under Armour the chance to enhance its e-commerce platform and reach a broader customer base.
    4. Innovation and technology advancements: Under Armour can continue investing in research and development to stay ahead in terms of technological advancements, offering unique and innovative products.


    1. Intense competition: The sports apparel industry is highly competitive, with established brands like Nike and Adidas dominating the market. This poses a threat to Under Armour's market share and growth.
    2. Economic downturns: Any economic recession or slowdown can impact consumer spending on discretionary items like sports apparel, affecting Under Armour's sales.
    3. Counterfeit products: The availability of counterfeit Under Armour products in the market can negatively impact brand reputation and customer trust.
    4. Changing consumer preferences: Consumer preferences and trends can change rapidly, and if Under Armour fails to adapt and meet evolving demands, it may lose market share to competitors.
    5. Supply chain disruptions: Any disruptions in the supply chain, such as raw material shortages or transportation issues, can impact production and distribution, leading to delays and increased costs.

    What are Under Armour weaknesses?

    Some potential weaknesses of Under Armour include:

    1. Dependence on North American market: Under Armour heavily relies on the North American market for a significant portion of its revenue. This over-reliance makes the company vulnerable to fluctuations in consumer spending and economic conditions in the region.

    2. Strong competition: Under Armour faces intense competition from well-established sportswear brands like Nike and Adidas. These competitors have larger market shares, broader product offerings, and stronger brand recognition, which can make it challenging for Under Armour to gain market share.

    3. Limited product diversification: Under Armour's product offerings are primarily focused on athletic apparel, footwear, and accessories. This lack of product diversification makes the company more susceptible to market trends and consumer preferences, as it may struggle to adapt quickly to changes in fashion or consumer demands.

    4. Pricing strategy: Under Armour's pricing strategy has often been criticized for being on the higher end compared to competitors. While this may position the brand as premium, it can also limit its appeal to price-sensitive customers, especially in price-driven markets.

    5. International expansion challenges: Under Armour has been striving to expand its presence in international markets. However, the company has faced difficulties in penetrating various markets, including cultural differences, regulatory hurdles, and competition from local brands. This makes international expansion a potential weakness for Under Armour.

    What are the four 4 parts of SWOT analysis?

    The four parts of SWOT analysis are:

    1. Strengths: These are the internal factors that give an organization an advantage over its competitors. They could include unique resources, capabilities, or attributes that contribute to its success.

    2. Weaknesses: These are the internal factors that put an organization at a disadvantage compared to its competitors. They could include limitations, deficiencies, or areas that need improvement.

    3. Opportunities: These are the external factors that could potentially benefit an organization. They could include market trends, emerging technologies, or favorable industry conditions that can be leveraged for growth.

    4. Threats: These are the external factors that could potentially harm an organization. They could include competitive pressures, regulatory changes, or economic downturns that pose risks to its operations and success.

    What is Under Armour's strategy?

    Under Armour's strategy is focused on becoming a leading global athletic performance brand. The company aims to achieve this by leveraging its unique blend of innovation, performance, and style to create products that meet the needs of athletes and fitness enthusiasts.

    Under Armour's strategy includes several key elements:

    1. Product Innovation: Under Armour emphasizes continuous product innovation to deliver cutting-edge performance gear. The company invests heavily in research and development to develop new technologies, materials, and designs that enhance athletic performance and comfort.

    2. Brand Differentiation: Under Armour seeks to differentiate itself from competitors by positioning its brand as a symbol of performance and authenticity. The company aims to create a strong emotional connection with consumers through marketing campaigns that feature high-profile athletes and promote the brand's commitment to excellence.

    3. Focus on Athletes: Under Armour focuses on catering to the needs of athletes, both professional and amateur. The company collaborates closely with athletes to understand their requirements and develop specialized products for various sports and activities.

    4. Omni-channel Distribution: Under Armour employs an omni-channel distribution strategy, which includes both wholesale and direct-to-consumer channels. The company operates its own retail stores, e-commerce platform, and also partners with various retailers to reach a wider customer base.

    5. International Expansion: Under Armour is actively expanding its presence in international markets. The company is targeting key regions such as Asia-Pacific and Europe, where it aims to increase brand awareness and grow its customer base.

    6. Connected Fitness: Under Armour has invested in digital platforms and technologies to provide a holistic fitness experience for its customers. The company's Connected Fitness division offers apps, wearables, and digital services that track and analyze athletic performance, nutrition, and overall wellness.

    Overall, Under Armour's strategy revolves around innovation, brand differentiation, athlete-centric approach, global expansion, omni-channel distribution, and digital fitness integration.

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