Porter’s Five Forces Analysis of Under Armour



Key Facts


Name  Under ArmourInc,
Industry Apparel
Founded 1996
Headquarters  Baltimore, US
CEOs Stephanie C.Linnartz
Revenues US $ 5.68billion,2021 December 31st

US$ 4.47 billion,2020 December 31st

Profit US$  0.361 billion, 2021

US$ (0.549) billion,2020

Competitors Nike, Adidas, Reebok, PUMA


Company Overview


Headquartered in Baltimore, United States reaching the 546th place in the Fortune 500 List. The Company Under Armour was declared on number 6th in the category of highest revenue generation in athletic apparel industry, by Statista.It was founded by Kevin Plank in 1996 in Georgetown, Washington DC later major operations moved to Baltimore. The company is mainly dealing in Apparel, Footwear and Accessories and mainly earning major revenues from United States of America and Canada. The company has an employee count 17,500 people.

Today we are going over Porter’s Five Forces Analysis of Under Armour:


Porter’s Five Forces Analysis


Porter’s Five Forces Analysis is used to determine the competition and profit margin in the Industry and guide the company’s to keep strategizing its operations in a better competitive position. It is invented by Professor Micheal E. Porter in 1979,at Harvard Business School.


Under Armour Rivalry among Existing Competitors


  • Under Armour-Business Segmentation- Geographical Presentation and Revenue Analysis:

The company divided the revenues segments lines for reporting purposes as follows with following revenues generated in FY 2022 and FY 2022.


  • Under Armour-Business Segmentation- Revenue Analysis FY 2020 and FY 2021

From Apparel the company generated US$ 3.841 Billion, US$ 1.264 Billion and from Accessories US$ 0.461 with a Net Revenue of US$ 5.56 Billion in FY 2021. While License and Corporate generated US$ 0.112 Billion and US$ 0.003 in FY 2021.


From Apparel the company generated US$ 2.822 Billion, US$ 0.934 Billion and from Accessories US$ 0.414 with a Net Revenue of US$ 5.56 Billion in FY 2021. While License and Corporate generated US$ 0.105 Billion and US$ 0.137 in FY 2021.


  • Business Geographical Presentation and Revenue Analysis for FY 2020 and FY 2021

The geographical division of the revenues are North America is the largest market with a revenue generated of US$ 3.8 Billion, EMEA generated US$ 0.842 Billion ,Asia Pacific gave US$ 0.831 billion while Latin America gave US$ 0.195 while Corporate division gave a revenue of 0.003 Billion in FY 2021.


The geographical division of the revenues are North America is the largest market with a revenue generated of US$ 2.94 Billion, EMEA generated US$ 0.598 Billion ,Asia Pacific gave US$ 0.628 billion while Latin America gave US$ 0.164 while Corporate division gave a revenue of 0.137 Billion in FY 2020.


  • Nike is the leading company in the industry of Apparel and Footwear for Athletes by generated world’s highest revenues of US$ 46.71 Billion with a Net Income of US$ 6.04 billion in FY 2022 while US$ 44.53 Billion with a Net Income of US$ 5.72in FY 2021.The company declared Net Assets of 40.32 Billion in FY 2022 and US$ 37.74 Billion in FY 2021.


Under Armour Threat of New Entrants


  • Heavy Capital Investment Fabric Technologies –Eco Friendly Practices – Research and Design: The Company used many latest technologies and design for a better consumer experience including double sided fabric to protect athletes from climate affects. Some of the famous Fabric Technologies Under Armour is using are All Season Gear, Cold Gear, Cold Gear Infrared ,Cold Gear Reactor, Coolswitch, Charged Cotton, HeatGear ,HeatGear Armour, HeatGear ArmourVent, MicroThread ,Moisture Transport System, Odor Control, Strategic Ventilation, UA Strom, UPF Protection.


  • Global Versus Local Competition: The Global size of the active wear market is projected to be standing at US$ 451.1 Billion by 2028 while the revenue of the Global Athletic Footwear is standing at US$ 50.9 billion. So this sector is expected and projected to attract more and new producers which will increase local and global competition both.


Under Armour Bargaining Power of Suppliers


  • Supply Chain Disruptions and Impacts: The Company faced supply chain disruptions mainly due to COVID-19 which ultimately affected the revenues figures also negatively in FY 2020 which was seriously addressed by the Company by launching direct-to-consumer channels in FY 2021 with efficient supply chain policies and timing procedures. These actions resulted in revenues in EMEA region by 35.6% increase from 2019 to 2021.Specially a drastic change observed from Q4 2020 to Q1 2021.


  • Launch of Direct to Consumer Channels : There is also evident results observed in Asia Pacific region after launching of Direct to Consumer Channels that the revenues increased by US$ 203.1 million or 32.3% to US$ 831.8 million in FY 2021 from US$ 628.7 million in FY 2020.The results are due to implemented Supply Chain efficiencies.


Under Armour Bargaining Power of Buyers


  • Brand Loyalty of Customers: The Under Armour customers are repeat users and shoppers of the brand products. Around 25% of all online shoppers and users mentioned they would like to use the brand again while in relation to 30% of Under Armour users 83% customers showed strong brand loyalty towards the brand declared by Statista.


  • Customer Satisfaction in Global and USA Market also in Comparison of Nike: Under Armour scored 86% in the customer satisfaction score survey amongst US customers regarding awareness of the brand, around 40% respondents like the brand while 30% all online shoppers and users use the Under Armour brand.


In comparison Nike is also getting extreme popularity in Europe instead of being a US brand in a survey conducted by Statista 60 % respondents from UK and Germany mentioned their inclination and likeness towards Nike Brand.


Under Armour Threat of Substitute Products or Services


  • Under ArmourE-Commerce Retail: In the Fiscal Year 2021 the company focused other channels of sales for better E-Commerce Management. The company use Company Website Store and direct digital purchasing from Factory House Stores which accounted 41% of the Total Sales declared as “Direct to Consumer DTC” while Wholesale sales accounted for 57% and License Sales accounted for 2% in FY 2021 declared by Statista.


  • Digital Sales Channels through Digital Connectivity Like Nike and other brands Under Armour is also providing connected digital apps for tracking fitness schedule and progress including MapMyFitness, MyFitnessPal and Endomondo.






  1. Forbes, Under Armour, Available at Forbes
  2. Fortune 500, Under Armour. Available at Fortune 500
  3. Under Armour. Annual Report 2022
  4. Statista (May 13, 2022) – Under Armour statistics and facts. Available at Statista
  5. Under Armour, History
  6. Statista (August 15,2022) Nike’s revenue worldwide from the fiscal years of 2005 to 2022 (in million U.S dollars).Available at Statista
  7. Nike Annual Report 2022
  8. Statista (May 25,2023) Under Armour brand awareness, usage, popularity, loyalty, and buzz among sports and outdoor online shop users in the United States in 2022.Available at Statista
  9. Statista (May 12,2022)Net sales share distribution of Under Armour worldwide in 2021, by distribution channel.Available atStatista
  10. Tennis Express ,Under Armour Apparel Technologies
  11. Forbes ,May 26, Nike. Available at Forbes
  12. Statista (August,17,2022).Nike Statistics and Facts | Statista. [online] Statista.Availableat Statista
  13. Fortune 500 Companies ,Nike. Available at Fortune 500









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