Should Nike Make a Play for Under Armour?
Nike (NKE) needs to start considering what benefits they would have by exploring a purchase of Under Armour (UA). Nike has tried to duplicate many of Under Armour’s signature products, including the first product, the Under Armour underwear gear. Additionally, Under Armour’s cold gear is a popular item for football players in cold weather games, along with their increasing popularity to younger generations of athletes. Under Armour’s recent introduction of running shoes is also a threat to long term shareholder value for Nike. As of right now, the shoes are barely noticeable to Nike, with billions of dollars of sales in running shoes and running apparel for Nike. Under Armour is only trying to steal a small piece of the pie. But, with young consumers very aware of the Under Armour brand, it seems that Under Armour has the momentum to one day steal a greater piece of that pie. Nike could act now to thwart any chances of Under Armour damaging their market share. Obviously, any threat is
