Table of ContentsCompany HistoryConditions of Supply and DemandPrice Elasticity of DemandCost of ProductionGlobal MarketRecommendationUnder Armour, Inc is a United States-based company that developed , manufactures and distributes casual clothing, sports and footwear for women, children and men, and Under Armor products will sell worldwide. The information gathered and presented in this summary will show that despite the company's low revenues over the past few years, Under Armor will continue to be a go-getter company and will be customers' first choice when it comes to workout clothing. It will also provide an in-depth analysis of Under Armor's microeconomics by examining numerous benchmarks to evaluate its position in the premium sportswear market. The analysis will focus not only on supply and demand conditions, but also on price elasticity, the overall market and production costs. I will provide my recommendations with the information I have gathered through my research and analysis. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Company History Under Armor became a company in 1996, by Kevin Plank, a 24-year-old former captain of the Maryland football special team. team. He founded the company because he was tired of always changing out of sweat-soaked shirts during training. Like any athlete, they will agree that having to take off their sweat-soaked shirt while trying to train and perform at their highest level is very annoying. He changed that and restructured the game by creating his own product. Its products helped athletes stay cool and dry in all types of conditions, and allowed them more time to train and less time to change due to sweat. Kevin created this impressive product in his grandmother's basement in the District of Columbia. His first sale earned him $17,000 in late 1996, which would help him build success for his product and create his company Under Armor. Supply and Demand Conditions The coronavirus (COVID-19) pandemic has negatively affected the United States and the world. economies, disrupted supply chains and financial markets, and led to significant travel and transportation regulations, as well as mandatory shutdowns and “shelter in place” orders. In the midst of this global pandemic, Under Armor is working to protect the health and safety of our teammates and consumers, while working with our customers and suppliers to reduce potential disruptions and help our community cope with the challenges presented by this pandemic. “During the first quarter, our January and February results were well in line with our plans. Since mid-March, as the pandemic accelerated significantly in North America and EMEA and retail store closures ensued, we have experienced a significant decline in revenue in all markets. Frisk continued: “As a result, like so many companies, we have had to make very difficult decisions, including temporarily laying off teammates in our U.S. retail stores and distribution centers, as well as other measures to ensure the protection of Armour's financial stability." As sales have increased this year at the same time as sales of women's clothing, Under Armour, like many different companies and industries, has felt the wrath of the coronavirus pandemic. On March 31, the companysaid its first-quarter revenue was down 23% to $930 million, with 15 percentage points associated with the impacts of the COVID-19 pandemic during the quarter. revenue fell 41% to $708 million in the second quarter, the company announced July 31. Under Armor announced on September 8 that it would lay off 600 of its global staff as part of cost-cutting measures due to the pandemic. of demandPrice elasticity is elastic with respect to supply and demand for Under Armor and all the various major sporting goods manufacturers. for example, I can review Under Armor and Nike stores in New York. each brand has department stores offering clothing, shoes, and accessories with prices ranging from $50 to $200. This is where the comparisons end and where Under Armor hurts itself. While the Under Armor store is large, it is not always properly identified, there is not much color variety, and it is very repetitive for both men's and women's clothing and shoes. However, Nike had a well-branded store offering clothing and shoes in every style, color and fabric imaginable. The Athlete also has testing facilities where you can try the running shoes on a treadmill or the basketball shoes on a basketball court. I would say that the price elasticity is much less for Nike than for Under Armour. If Under Armor truly wants to regain its momentum and compete with a giant like Nike, they want to be as revolutionary with their store design, clothing and shoe colors as they can be when designing the technology of the fashion, in addition to seeking to be much less. repetitive. In this case, customer responsiveness to price changes for Under Armor products will, at least in North America, be more negative than positive. If Under Armor's prices continue to be like Nike's or increase and the customer's revenue stays the same or decreases, people will follow Nike because they market themselves better in their stores as well as being the most popular brand. old and most dependent on the brand. . If Under Armor's prices go down or Nike goes up and the customer's income stays the same or increases, I could say that Under Armor's domestic sales will go up a bit, though, to honestly take a pound of flesh off Nike which they may need to keep prices low for several years and they may need to market themselves better with greater variety to attract reliable Nike customers to the sporting goods giant. For any sporting goods business, you want to stay on top of the demand you are receiving for your product and change your offering and pricing for that reason. Cost of Production Cost of production is particularly essential in any business. while they generally work on statistics, the lower the cost of production, the higher the profit will be. Under Armour's cost of goods has remained stable in recent years. The cost of goods includes a few elements, including transportation costs and manufacturing costs. Under Armor's cost of goods sold for the fiscal years ending December 2017 through 2019 averaged $2.601 billion. Looking at the last five years, Under Armour's cost of goods sold peaked in December 2018 at $2.832 billion. Under Armor's cost of goods sold declined in the first two quarters of 2020. Under Armor reported losses of (-1.638 million), 2019 (2.797.