Under Armour
Case 5: UNDER ARMOUR
1.What is your assessment of the strength of competitive pressures stemming from rivalry among Under Armour, Nike and Adidas-Reebok?
The Rivalry among competing sellers of sporting goods such as Under Armour, Nike, and Adidas-Reebok is strong and likely to intensify. The rivalry among sporting good sellers of energy will keep growing and will become stronger in coming years. Under Armour. Nike, and Adidas-Reebok have similar or competing product offerings and that is why competition among them is so high. If these companies want to stay in business they need to come up with different strategies that will set them apart from the opposition. Competition is intense and revolves around performance, reliability, new product development, price, advertising, and customer support and service. All the factors just mentioned help increase the strength of competition between rivals. On the other hand, for consumers, rivalry is good because it increases the variety of possibilities in prices and quality. Sellers need to maintain high standards so that consumers keep their brand loyalty because rivalry increases as the products of rival sellers become less strongly differentiated.
2. What is your assessment of the strength of competitive pressures stemming from the threat of entry of new competitors into the North American market for performance sports apparel?
Brands like: Under Armour, Nike and Adidas/Reebok are in a highly competitive industry where the dominant competitors have significant range of market coverage that makes it difficult to find an entry point. A newcomer is going to face two classes of factors: the expected reaction of incumbent firms to new entry and the barriers to entry. The newcomers are going to have to deal with the cost advantages enjoyed by the industry incumbents because when first entering a market newcomers are going to have to “buy” their way in. Also the stronger the attachment of buyers to
1.What is your assessment of the strength of competitive pressures stemming from rivalry among Under Armour, Nike and Adidas-Reebok?
The Rivalry among competing sellers of sporting goods such as Under Armour, Nike, and Adidas-Reebok is strong and likely to intensify. The rivalry among sporting good sellers of energy will keep growing and will become stronger in coming years. Under Armour. Nike, and Adidas-Reebok have similar or competing product offerings and that is why competition among them is so high. If these companies want to stay in business they need to come up with different strategies that will set them apart from the opposition. Competition is intense and revolves around performance, reliability, new product development, price, advertising, and customer support and service. All the factors just mentioned help increase the strength of competition between rivals. On the other hand, for consumers, rivalry is good because it increases the variety of possibilities in prices and quality. Sellers need to maintain high standards so that consumers keep their brand loyalty because rivalry increases as the products of rival sellers become less strongly differentiated.
2. What is your assessment of the strength of competitive pressures stemming from the threat of entry of new competitors into the North American market for performance sports apparel?
Brands like: Under Armour, Nike and Adidas/Reebok are in a highly competitive industry where the dominant competitors have significant range of market coverage that makes it difficult to find an entry point. A newcomer is going to face two classes of factors: the expected reaction of incumbent firms to new entry and the barriers to entry. The newcomers are going to have to deal with the cost advantages enjoyed by the industry incumbents because when first entering a market newcomers are going to have to “buy” their way in. Also the stronger the attachment of buyers to