Under Armour

Kevin Plank grew up in a middle-class family in Maryland. He wasn't a star athlete, but he was tenacious. At the University of Maryland, he played football as a walk-on. It was here, drenched in sweat after practice, that he had his eureka moment.

"There has to be something better than a cotton T-shirt," Plank thought.

This was the spark. Plank noticed that his compression shorts stayed dry during practice. Why not apply this to a T-shirt? With $20,000 in savings and $40,000 spread across five credit cards, he launched Under Armour in 1996.

The early days were tough. Plank worked out of his grandmother's basement in Washington D.C. He drove up and down the East Coast, selling his shirts from the trunk of his car. By the end of 1996, he had made just $17,000 in sales.

But Plank persevered. He believed in his product. In 1997, he made his first big sale to Georgia Tech for about $17,000. Two dozen NFL teams followed suit. By the end of his second year, he had sold $100,000 in product.

"You need to put your hands around the throat of your business, and you need to run it. There's no other way," Plank said.

This grit paid off. Under Armour took off in the early 2000s. National advertising campaigns put the brand on the map. By 2002, Under Armour was in 2,500 retail stores.

The company went public in 2005, raising $115 million. The stock doubled on its first day of trading. Under Armour had arrived.

But success brought new challenges. The company had to compete with giants like Nike and Adidas. It had to innovate constantly to stay ahead.

"We are the athletic brand of this generation and the next," Plank declared in 2012.

For a while, it seemed he was right. Under Armour signed stars like Steph Curry and Tom Brady. By 2015, it had overtaken Adidas to become the second-largest sports apparel company in the U.S.

But the company stumbled. It missed the athleisure trend. Management issues plagued the business. In 2017, Under Armour reported its first ever net loss as a public company.

Plank stepped down as CEO in 2019, but he's not done yet. He's back at the helm, determined to turn things around.

"Given [that Plank] has 65%-70% of the stock's voting rights, he's still very much in control of the company's strategy," said Rick Patel, retail analyst at Needham & Company.

Under Armour's story isn't over. From a $17,000 startup to a billion-dollar brand, it's a testament to the power of perseverance and innovation. Plank's journey shows that with enough sweat and determination, you can change an industry.

As Plank once said, "Brands are all about trust. That trust is built in drops and lost in buckets".

Lessons

Lesson 1: Embrace the underdog mentality. Even as Under Armour grew into a multibillion-dollar company, Kevin Plank maintained an underdog mindset. You should never lose that chip on your shoulder. It keeps you hungry. Plank said, "We have a chip on our shoulder, and that chip doesn't go away, because there's not a finish line." This attitude helped Under Armour compete against giants like Nike and Adidas. It pushed them to constantly innovate and improve their products.

Lesson 2: Focus on solving a specific problem. Under Armour started with a simple goal: create a better t-shirt for athletes. Plank noticed that cotton shirts got heavy with sweat during practice. He set out to solve this specific problem. You should aim to solve a clear, defined issue in your market. This focus can lead to breakthroughs. As Plank put it, "There has to be something better than a cotton T-shirt."

Lesson 3: Build a strong company culture. Under Armour's success is partly due to its strong internal culture. They refer to employees as "teammates" and offer company-wide fitness training. This creates a sense of unity and shared purpose. You should focus on building a culture that aligns with your company's mission. As Plank said, "We want to have the best type of people – team, team, team. I can't underscore that need [enough]."

Lesson 4: Leverage strategic partnerships. Under Armour's growth was accelerated by partnerships with athletes and teams. They signed deals with NFL teams and athletes like Tom Brady and Steph Curry. You should look for strategic partnerships that can boost your brand visibility and credibility. These partnerships can open doors to new markets and customer bases.

Lesson 5: Turn limitations into strengths. In the early days, Under Armour couldn't afford big-name athlete endorsements. Instead of seeing this as a weakness, they turned it into a strength. They focused on outfitting entire teams and building relationships with up-and-coming athletes. This grassroots approach helped them build credibility and loyalty within the sports community. It also allowed them to spot talent early. When they finally could afford major endorsements, they had a keen eye for rising stars. Their signing of Stephen Curry, initially overlooked by Nike, is a prime example of this strategy paying off.

Speeches and Interviews

• Kevin Plank | Under Armour | 2024
• Keynote Fireside Chat featuring Kevin Plank '96 in conversation with President Darryll J
• Kevin Plank - My company is in an unfair fight with Nike
• Under Armour CEO Kevin Plank: The Rise To The Top | Mad Money

Videos

• The Evolution of Under Armour || Documentary (Kevin Plank)
• Kevin Plank, The Creator Behind UNDER ARMOUR
• The Incredible Story of Kevin Plank and Under Armour

Book Recommendations

• Under Armour by Sarah Roggio

Further Readings

• Analyzing Porter's Five Forces on Under Armour (UA)
• Kevin Plank and the Rise of Under Armour
• The Analysis of the Reasons for the Success of the Under Armour
• Charting Our Path Forward - Under Armour
• Why You Won't Forget Under Armour CEO Kevin Plank's Message to
• Insight From The Kevin Plank Bio | Peter Guber's 'Tell to Win'
• Under Armour - Wikipedia
• Kevin Plank - Wikipedia
• History - Under Armour
• Stories - Under Armour