When it comes to athletic apparel, the first company people think of is either Nike or Adidas. Why is this so? Both Nike and Adidas have done an impressive job in marketing their products, with popular spokesperson like Kobe Bryant or Derrick Rose. Nike’s success is attributed to its products contributing to the success of the athletes who purchase them. Nike and Adidas seemed as though they had control on the athletic apparel oligopoly, but recently, Under Armour has become a serious competitor to the two companies. The road to becoming a legitimate competitor has been tough, specifically because of the competitive nature that exists between firms in the same market. The market structure, determinants of supply and demand, and future outlook of the company can help us see the state and performance of Under Armour. Under Armour’s is an example of a monopolistic competition, meaning they have aspects of a perfect competition market structure, but their products are not the same as its competitors. As mentioned above, Under Armour’s main competition is both Nike and Adidas. Recently, Adidas has …show more content…
Profit maximization will expand a firm’s production until its marginal cost is equal to its marginal revenue. Under Armour needs to be able to find the point of production to where they can become most profitable. They will have to be aware of the economy and recognize that in a recession, it will be harder to sell products than in a time of expansion. Finding the balance depending on the current economy is the key to Under Armour’s success. If they are able to find it, then they can achieve maximum profit and put their competitors behind them. Also, Under Armour will need to identify inputs of the costs of the things to make their products. Likewise, they will need to discover the prices of any complimentary goods that go along with their products as well as substitutes that could diminish
One group had kids from the age of 10 to 13 in it the other group was slightly younger. The kids were asked how important brands are to them for different kinds of products. In this survey they also asked the kids how important it is that their sports shoes were from a brand. 73% of the older group answered that it is important to them. That’s a really high number which shows just how much the brands have made their way into the sports industry.
They want people to , when looking for sporting gears, see the brand of nike and instantly know that is quality and reliable products on the shelf. They used ethos ,pathos, and logos to boost their campaign in establish well known sporting product on worldwide platform. This is the way how nike has become so successful in its category. Nike is setting standards that other companies are following in sporting
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.
Under Armour: Working to Stay on Top of Its Game Lulu M. Mero Webster University Abstract This paper explores the case study found in the Strategic Management: Competitiveness & Globalization (10th ed) under the authors of the book, Michael A. Hitt, R. Duane Ireland, and Robert E. Hoskisson. The title of the case is “Under Armour: Working to stay on Top of Its Game” which analyzes fully the portfolio of the company. Under Armour is an apparel firm that faces some competition and it constantly has to revise its business strategy to stay on top of the market. This case study discloses the company’s history, growth, product and sales profile, major competitors, management, marketing, business strategy, and strategic challenges.
Now, like any other company out there in the corporate world, they all come across a point in business where they face a competitive situation, due to either their product line, pricing, or their financial system. According to our
The company Fast Retailing Co., Ltd was found and established on 1 May 1963 in Japan by Tadashi Yanai. Presently, they have launched several apparel and lifestyle brand of UNIQLO, GU, Theory, Comptoir des Cotonniers, Princesse tam.tam and J Brand. UNIQLO was first, to be introduced by Fast Retailing in 1984. It was a brand created to provide comfortable causal clothing to everyone, women, men, kids and babies. A lifestyle wear that was made for all, for everyday activities.
Company Description Nike believes diversity and inclusion drives innovation that lead to a competitive advantage. Nike has a broad base of suppliers that actively and significantly support their business requirements. Nike’s Global Procurement team manages the procurement process, including selecting and contracting with the right suppliers for the right goods and services. They have also begun to reduce Nike 's footprint and lessen their impact.
Due to this reason Nike is now a world wide brand used by each and every people in different parts of the
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.
The strength of high price product strategy is that Nike can earn more on each single item. Also, it can ensure the quality of the products. The low-priced products policy could widen the customer group and attract more buyers to boost the sales. The weakness of selling premium is that only high-end buyers could afford to buy it.
Mark Moulton Professor Ottemann December 10, 2014 2014 Term Paper Nike & Under Armour Company Assessment Nike and Under Armour are two of the largest sportswear and athletic shoe companies in the world. Their histories and growth are similar but they use different corporate and business strategies. Their strategies reflect their corporate structure and the personalities of their leadership.
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.
Nike is the leading and renowned world supplier of athletic apparel and shoes. The brand is in control of over 47% of the market for athletic shoes. The company begun way back in 1962 and it was founded by Phil Knight and Bill Bower. It was originally known as Blue Ribbon Support and only in 1978 did it change its name to the worldwide recognized brand, Nike. Nike provides its products to more than 100 countries throughout the world.
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
Initially, each country was provided with subcontracts for production while Nike retained all control of the products. Through this move, Nike was able to reach global market supply goals, but was also able to gain a competitive advantage, which competitors have found hard to beat over the years. By taking advantage of outsourcing opportunities, Nike is also able to produce at very low both through the raw materials and the cheap labor availability. As a result, Nike is able to largely invest in marketing and designing innovative designs, another strong tactic to survive competition in the industry.