ipl-logo

Porter's Five Forces Analysis Of Under Armour

1271 Words6 Pages

Executive Summary: Under Armour is a company which was launched by former University of Maryland football player Kevin Plank. When he first started his business, it was named KP Sports, it is now known as Under Armour. The company started very small and operations were held from the basement of the founder's grandmother's house. However, the company soon expanded to have a remarkable market share in the sports apparel industry. Under Armour offers durable, functional, and high-quality products for athletes. The strategic methods implemented by the company have only got it so far. It is now in competition with big brands like Nike and Adidas. However, it will have to go the extra mile to be able to be on the same level as those rivals. Under Armour focuses more on athletic wear rather than lifestyle wear. It has strong brand recognition among athletes. That being said, Under Armour has to seriously consider expanding internationally to cover more markets. It should also work on products diversification and innovative designs. The following sections of this report will support the recommendations presented because they were based on the results of implementing external and internal …show more content…

To begin with, it is crucial to identify the industry. The athletic footwear and fitness apparel industry constitutes of somewhat 25 companies which offer sportswear, sports accessories, sports footwear, and sports equipment. Some brands even offer casual wear. Competitors in the industry have relatively high prices due to their products' durability and innovated materials used in manufacturing them. Porter's five forces which will be used in the analysis below are: competitive rivalry, bargaining power of suppliers, bargaining power of customers, threat of news entrants, and threat of substitute products. A detailed analysis will be attached in the appendix (Appendix

Show More
Related

  • Footlocker Essay

    728 Words  | 3 Pages

    Footlocker competes with others who sell similar athletic footwear and apparel. Mass merchandisers, department stores, specialty stores, and traditional shoe stores are just a few of those in which Footlocker must compete with. Mass merchandisers may have advantageous marketing resources. Not only does Footlocker have to compete with its competitors, but Footlocker also must compete against its own suppliers. Not only does Footlocker carry merchandise of different athletic brands such as Nike, Adidas, Reebok, and Under Armour, but these same companies that supply Footlocker also sell their own merchandise through store chains of their own.

    Read More

  • Curry's Case Summary

    59 Words  | 1 Pages

    • Consistence of player success: Sales volume of Under Armour’s basketball shoe is highly consistent with Stephen Curry’s success. Therefore, if he couldn’t keep that rating, the revenue of UA Curry 2 is probably going to decrease, even though he is young rising player. In fact, whole sale of the product is extremely relevant to only one player’s performance.

    Read More

  • Lvmh Porter's Five Forces

    885 Words  | 4 Pages

    Below is an analysis of Porters Five forces with the Fashion and leather goods industry as a whole. Threat of Entry/Potential Entrants The threat of entry is

    Read More

  • Capsim Porter's Five Forces

    506 Words  | 3 Pages

    Porter’s Five Forces Porter’s Five Forces framework is to identify the level of competition within the industry and to determine the strengths or weaknesses which can utilise to strengthen the position. The framework consist of five elements: threat of entry, bargaining power of supplier, bargaining power of buyer, threat of substitutes and industry rivalry. Forces Analysis Implication Threat of new entrant Low Threat Diversified of product There are high demand of furniture and electrical appliance.

    Read More

  • Under Armour Swot Analysis

    772 Words  | 4 Pages

    Their investments in research and development exceeded those of Adidas, and aided their growth in the market. However, its distribution networking is not as effective, and they have very low patent protection. Nike and Adidas manufacture a broader array of products for their customers than does UA. Furthermore, although UA has a high brand loyalty, their reputation is still not approaching those of Nike and Adidas, which are brands recognizable almost everywhere. As shown in the competitive strength analysis table in Appendix E, Nike has the highest overall strength, 8.10, Adidas in the middle with 7.70, and UA the least with a score of 7.10.

    Read More

  • Under Armour: Competitor Analysis: Nike And Adidas

    1158 Words  | 5 Pages

    2.0 Competitor Analysis The industry that Under Armour is involved with is extremely competitive, with competing against big names such as Nike or Adidas. Although it’s hard at the beginning, but customers want to have the highest quality apparel therefore they turn to Under Armour. Under Armour stays in the competition by having high quality products, and also by signing endorsements deals with major athletes (Owusu, 2017). By having major athletes represent Under Armour, means the company will be bringing in "big money" because they will bring up the brand’s popularity. The major competitors in this industry are of course inclusive of big names such as Adidas, Nike, Dick’s Sporting Goods and Puma.

    Read More

  • Porter's Five Forces In The Supermarket Industry

    1484 Words  | 6 Pages

    Each of the forces is determined how competitive in that industry as well as the structure of the industry. Porter’s five forces factors are consists of competitive rivalry, the threat of new entrants, the threat of substitutes, bargaining power from

    Read More

  • Under Armour Research Paper

    326 Words  | 2 Pages

    Quickly after noticing my addiction and dedication to your sportswear, over 3/4ths of the team owns UA products (Great Expansion in Europe by the way). My son plays soccer and ofcourse I ensure that he has the best with 2 UA ColdGear® Armour Compression Mock. Now,

    Read More

  • Success And Failure Of Nike

    1424 Words  | 6 Pages

    NIKE The Factors that Led to Success and Failure of Nike in its Venture across International Markets Abishek TR* Abstract- Key words: INTRODUCTION The largest American suppliers of athletic shoes, apparel, and sports equipments .At the same point of time ,this company is known worldwide .The Success of this company is the result of the various strategies used in the international market expansion which helped them to enter into new markets and to strengthen its position in the traditional ones .

    Read More

  • Macro Environmental Analysis Of Nike

    2130 Words  | 9 Pages

    In the assignment, it will discuss the sports brand Nike which specifically focuses in Chinese market. There are three main content areas in this assignment. The first part is a macro environmental analysis; the next part is the target customer profile; the last part is the analysis of marketing strategies. Macro Environmental Analysis: Nike is a very well-known market leader. It is an international brand, their products are selling in the worldwide including China.

    Read More

  • Porter's Five Forces In The Oil And Gas Industry

    1601 Words  | 7 Pages

    Threat of Substitutes 4. Bargaining Power of Buyers 5. Power vested by Suppliers 1. Competitive Rivalry: According to Porter the competitiveness in any sector is significantly increased by the number of players operating in the field and their major competencies.

    Read More

  • Micro Environmental Factors Of Nike

    1368 Words  | 6 Pages

    Competitors: PUMA, K-Swiss Inc., LaCrosse Footwear, Inc., Dick 's Sporting Goods, Inc., New Balance Athletic Shoe and Adidas – (Adidas have currently branched out into customization of footwear products. To sustain its competitive advantage over competitors, Nike has to take this to consideration). However, a large number of competitors in an industry usually indicates lots of demand for the products or services provided and this will help Nike to succeed in the long run. Suppliers: Nike outsources almost all of its footwear production to independent third party suppliers. As Nike has a minor control over quality of the products.

    Read More

  • Sports Brand Loyalty Essay

    1184 Words  | 5 Pages

    In addition, well-established brand names can be continue to contribute investment and time in upholding brand identity, preserving brand loyalty and developing new sports product lines so as to occupy more market share (Mei-mei, et al. 2006). These big scale companies are well-known in the sportswear market, their marketing sales were significantly higher than others sport brands a lot. To cite an example with referencing MBASkool (2001-2014), the total amount of sales in Nike has $27.04 Billion and $19.24 Billion in Adidas but only $3.1 Billion in Asics in 2014. In concluded of all manufacturers of sport, Nike has an industry leading 38% market share of the branded sportswear market which ranked the first one in 2012. In view of this, these brands are highly competitive and easy to earn the customer loyalty to the

    Read More

  • Nike Consumer Behaviour

    1301 Words  | 6 Pages

    Consequently, Nike’s pricing is intended to be economical and competitive to the other sport gear retailers. The pricing is built upon many factors that have been taken into consideration before setting a selling price on the root of the high-class segment as target customers. Nike as a brand orders high premiums. Nike’s pricing strategy makes use of perpendicular amalgamation in pricing in which they target participants with different channel levels or take part in more than one type of channel level operations. This can govern costs and effect product

    Read More

  • 5 Forces Analysis Of Porter's Five Forces For The Bag Industry

    880 Words  | 4 Pages

    Five Forces Analysis Threats of New Entrants - High The threat of new entrants for the bag industry is high since putting up a bag business is easy. There are a lot of different companies that are already in this kind of industry. There are international and local businesses that have successfully established their brands here in the Philippines. There is an increasing percentage of local brands here in the Philippines which indicates that the barriers to entry are low in the bag industry.

    Read More

More about Porter's Five Forces Analysis Of Under Armour

Open Document