Difference between Nike and Under Armour
Nike is a sportswear company that stands alongside many other famous brands as one of the top manufacturers of sports related equipment in the world. While it would seem that such an industry giant would be hard to compete with–let alone to topple–a number of entrants have made their own hefty marks on the scene. Take for example Under Armour, which is fast making inroads into the market previously dominated by Nike. Does the company have what it takes to measure up? Let's see!
Focus
Nike is unarguably the number one manufacturer of sports shoes in the world, having cornered as much as 20% of the athletic shoe market. The company’s lineup includes shoes for basketball, baseball, golf, hiking, tennis, and football among others. Under Armour for its part seems to be more focused on the athletic apparel market, and it is one of the major players in the compression garment industry.
Nike goes beyond athletic shoes as well, with a fairly respectable line of sports related clothes, equipment and accessories. As for Under Armour, the company has also seen fit to delve into the sports shoe market, with a pretty good selection of cross-trainers in its lineup.
Comparative Strengths
Unsurprisingly, Nike has the edge over the competition–Under Armour included–with its vast selection of sportswear and footwear. While Under Armour does carry products that compete with Nike in the football, lacrosse, and softball shoe department, Nike also offers shoes for basketball, golf, track & field, and several other sports, areas in which Under Armour has no presence at all. To Under Armour’s credit however, the fact that it has cornered a pretty respectable niche of its own is a definite accomplishment, especially since the company has been in business for only a relatively short period of time.
Market Value
Under Armour is capitalized at $1.28 billion, which is a far cry from Nike’s capitalization of a whopping $26.38 billion. While this would seem to put Under Armour at a strict disadvantage compared to the sportswear giant, Under Armour does seem to have the edge in terms of potential for expansion. While Under Armour definitely has a long way to go before it can reach the level of Nike, recent market performance shows that it may just come out strong in the years to come.
Summary
Nike
- Has cornered more than 20% of the athletic shoe market in the United States
- Focuses primarily basketball, baseball, golf, hiking, tennis, and football shoes
- Also offers a selection of sports-oriented clothes, watches, equipment and accessories
- $26.38 billion capitalization.
Under Armour
- Fast making its mark as a manufacturer of quality sports apparel
- Has managed to corner a large portion of the compression garment industry
- Expanding into the shoe with its own line of cross-trainers
- It hopes to grab 10% of the sportswear market
- $1.28 billion capitalization
