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Competitive Profile Matrix (CPM)

The CPM quantifies Under Armour's competitive position relative to its main rivals, Nike and Adidas. The analysis reveals that UA is not a true peer and is significantly disadvantaged across most critical success factors for the industry.

CPM: Under Armour vs. Rivals

Critical Success FactorWeightUA RatingUA ScoreNike RatingNike ScoreAdidas RatingAdidas Score
Brand Image & Marketing0.2030.6040.8040.80
Product Innovation0.1530.4540.6030.45
Financial Strength0.1510.1540.6030.45
Distribution & Global Reach0.1520.3040.6040.60
Athlete Endorsements0.1040.4040.4030.30
Management Stability0.1010.1040.4030.30
Price Competitiveness0.1020.2030.3030.30
Total 1.00 2.20 3.70 3.20

Analysis of Competitive Position

Conclusion: Weak Competitive Position

Under Armour's total weighted score of 2.20 is significantly below the average (2.5) and places it in a weak competitive position. It lags far behind industry leader Nike (3.70) and strong competitor Adidas (3.20).

  • Critical Weaknesses: UA scores a '1' (poor) on **Financial Strength** due to its -$48M net loss (p. 4, Ex. 2) and on **Management Stability** due to its executive "disarray" (p. 3, para. 1). These are foundational elements where UA is failing.
  • Major Disadvantages: It scores a '2' (below average) on **Distribution** because of its over-reliance on a failing wholesale channel, a stark contrast to the global retail and DTC networks of its rivals.
  • Area of Parity: The only factor where UA competes on an equal footing is **Athlete Endorsements** (Rating 4), demonstrating the power of its marketing relationships.

Overall, the CPM confirms that UA must urgently address its internal financial and management crises to have any chance of competing effectively against its much stronger rivals.