PESTLE Analysis of Under Armour

by Shamsul
Under-Armour PESTLE-Analysis
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PESTLE Analysis of Under Armour


Nearly every sports person and fitness enthusiast are familiar with Under Armour. Kevin Plank established it in 1996, headquartered in Baltimore. Under Armour is one of the biggest manufacturers of sports items, including sportswear, footwear, casual wear, and equipment. The company ships its products globally. The company has many offices worldwide, such as in New York City, Amsterdam, London, Paris, Seoul, Toronto, Shanghai, and more. We will know more about it when we will do the PESTLE Analysis of Under Armour.

The founder of Under Armour, Kevin Plank, was a footballer in his university. He faced various issues while playing in the form of sweat. He came up with the idea of sweat-proof sports apparel and launched his own brand. Now, some biggest competitors of the company, such as Nike and Reebok have been using dry-fit technology. We have a clear picture of the brand, so let’s start its PESTLE analysis to understand its political, economic, social, technological, legal, and environmental factors.

Political Factors:

The company is prone to fluctuating exchange and currency rates. As a global brand, these factors affect the brand. The impact of taxation, duties and other related factors are also crucial. Being an international brand, the company must be careful about its political associations. In 2017, the founder made a mistake by calling Donald Trump as an asset to America. Just because of this, the company faced a massive backlash from people. 

This statement also hurt the sentiments of many employees. They must understand this thing just to avoid such controversies in the future.

 Such political affiliations could be fatal for the growth of the company.

Economic Factors:

In the past few years, the company enjoyed the taste of success. It was a market leader in 2015 and 2016. But, the company has been spending millions of dollars on increasing its growth to take the competitive edge. Every brand, including Under Armour, has faced difficulties during Covid-19 in terms of lower sales and closure of stores. They have experienced such a bad time during the pandemic. The main reason for this is because of the lockdown. Sportswear demand was almost zero during the pandemic because of the shutdown of gyms, parks, and grounds. 

The company is now adding casual wear to its portfolio to survive in risky situations. According to financial experts, Under Armour will face more losses in the future because of the outbreak of the 4th and 5th waves.

Social Factors:

The company has faced huge criticism on various factors such as women’s inequality and sexism. According to sources, they paid huge sums to strip clubs. Such news or scandals could be deadly for the image of the brand. Under Armour should make policies on the basis of demographic trends and the spending power of consumers. The role of culture is huge in this regard. People love those products that they can easily connect with their hearts. So, you can’t neglect the impact of societal norms on the company’s business performance.

Technological Factors:

After seeing the online sales boom, Under Armour should enhance its technological infrastructure. They should invest in this sector if they want to stay ahead of the competition. Moreover, it is one of the most significant sources of generated online revenues. They can introduce more innovative products such as digitally-connected footwear and fitness apps. The growth chances are huge for Under Armour in this segment. These steps will help the company to grow its reach and image in the eyes of global consumers. They can manufacture shoes for different foot types to target more customers.

Legal Factors:

The company has got many claims for committing accounting fraud. In 2017, a Wall Street Journal posted an article about fraud against the company. The company posted a false revenue percentage in order to show healthier growth in the market. Such legal issues and controversies are not suitable for the brand. They can spoil the credibility and reputation of the brand. As a result, they can lose their customer base as well as market share. They must carry out all the rules and regulations in order to avoid the risk of any violation.

Environmental Factors:

Under Armour is a very pro-environment Sports Wear brand. The company has been taking proper initiatives to adopt sustainability, reduce carbon emission, etc. They have been working with EDF and SAC to decrease their carbon footprint. They are trying to save the surroundings by taking green initiatives. On the other hand, they are also very concerned about air and water pollution. They believe in ethical practices and these factors are its strength. Due to these initiatives, customers, especially eco-conscious people, love to buy clothes and footwear from Under Armour.


Under Armour is a big brand in sportswear and fitness equipment. They have a strong presence worldwide, so they can take advantage of this factor. The company should add more products to its portfolio to fulfill every customer’s demand. They should also resolve small problems in order to avoid any disturbance in the business. They just need to make effective policies to grow the brand further.


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