After 20 years of growth unprecedented in the sports apparel industry, Under Armour finds itself with a new record to beat: making the leap from $5 to $10 billion in sales—a feat only accomplished to date by competitors Nike and Adidas. At the heart of this challenge is how Under Armour can maintain its brand’s authenticity while adding new products that fuel future growth. The case traces the evolution of Under Armour’s brand and describes how the company chose to extend or not extend its brand into adjacent categories and markets in the past. Now Under Armour needs to decide on their next steps. Should the company focus on its core markets? Should it stretch the brand into more adjacencies? Or should it consider something more radical, like app-related sales through subscriptions and wearable technologies?
Keywords: Under Armour; Nike; Adidas; ＂Jobs to be Done; Purpose Brands; Entrepreneurship; Customer Focus and Relationships; Innovation Strategy; Business Growth and Maturation; Growth Management; Innovation Leadership; Sports Industry; Apparel and Accessories Industry; Fashion Industry; Health Industry; Technology Industry; Retail Industry; United States; Maryland; Baltimore;
Citation:
McDonald, Rory, Clayton M. Christensen, Daniel West, and Jonathan E. Palmer. "Under Armour." Harvard Business School Case 618-020, January 2018. View Details