Competitive Rivalry Within The Industry Medium to High
Bargaining Power Of Customers (Medium) They have wholesale and end customers as well as independent salesagents in different countries
Threat Of New/Potential Competitors Medium
Bargaining Power Of Suppliers Low to Medium
Threat Of Substitute Products Low
Some of Nike and Adidas products are patented, Under Armour does not have patent rights which means their products can be easily copied Nike and Adidas are both trying to get their market share in the apparel industry. Compared to Under Armour, they have greater resources and it would likely be easy for both companies to penetrate the market.
2. Does Under Armour have any core competencies and, if so, what are they?
YES,
CEO Kevin Plank was a former athlete
Product Development and Innovation
Performance and Marketing Campaign
3. Does Under Armour have any resource strengths or competitive capabilities that qualify as a distinctive competence? YES
Product Performance and Brand Image n-house Marketing/ Brand Promotion
4. What does a SWOT analysis reveal about the overall attractiveness of Under Armour’s situation?
Strength:
The innovation and technology behind Under Armour is a keydriving force to rapid expansion
Under Armour’s major strength was its products performance and strong brand image; these factors established Under Armour as a well recognized and respected brand name
Core competence in research development and innovation Weakness
Limited product line that is mostly targeted to males.
Global Brand Recognition
Opportunities
expand its product line to various segments; thus,increasing both sales and product portfolio womens apparel childrens apparel running outdoors
Exit Strategy (sell to Nike)
Global Expansion
Threats
Intense competition (Nike, Adidas, etc.)
Substitute Products
Changes in consumer trends/behavior
5. What are the key elements of Under Armour’s strategy?
Fabrics are engineered in many designs and styles for wear in nearly