Under Armour Industry Analysis Essay
Porter's analysis of Under Armour Competition in the industry
Only a few companies have the sheer size and established distribution channels to compete against UA. The biggest of these competitors are Nike and Adidas. Both these companies have higher market share and total annual sales than UA. Nike's trailing 12 month sales is over 31billion, Adidas' trailing 12 month sales is over 16billion, and UA's trailing 12 month sales is just under 4billion. Potential of New Entrants Into the Industry
The barriers to entry for an athletic apparel company are very high, it takes a lot of financial and human capital to manufacture them with quality and affordability. UA tends to be a significant new entrant being successful in every industry …show more content…
Buying in bulk allows companies like Nike and Adidas to be able to pay lesser compared to UA. For example, Nike may be able to buy more Cotton T-shirts than UA and negotiate a lower prices. This could explain why UA tends to have higher-priced products than Nike and Adidas. UA has been very innovative in the materials it uses by creating various proprietary fabric blends therefore have been successful despite higher prices, creating product …show more content…
They have the ability to buy and easily shop the cheapest price for a similar product. With that in mind, it is vital for a company like UA to offer products that consumers are willing to pay a premium over mainstream, price-competitive goods. According to studies conducted, many consumers tend to buy based on brand recognition and association. Over the past years, UA has been expanding worldwide without fail, offering high quality products consumers are very satisfied with. UA sponsors some of the world's best athletes like Steph Curry to promote their
Only a few companies have the sheer size and established distribution channels to compete against UA. The biggest of these competitors are Nike and Adidas. Both these companies have higher market share and total annual sales than UA. Nike's trailing 12 month sales is over 31billion, Adidas' trailing 12 month sales is over 16billion, and UA's trailing 12 month sales is just under 4billion. Potential of New Entrants Into the Industry
The barriers to entry for an athletic apparel company are very high, it takes a lot of financial and human capital to manufacture them with quality and affordability. UA tends to be a significant new entrant being successful in every industry …show more content…
Buying in bulk allows companies like Nike and Adidas to be able to pay lesser compared to UA. For example, Nike may be able to buy more Cotton T-shirts than UA and negotiate a lower prices. This could explain why UA tends to have higher-priced products than Nike and Adidas. UA has been very innovative in the materials it uses by creating various proprietary fabric blends therefore have been successful despite higher prices, creating product …show more content…
They have the ability to buy and easily shop the cheapest price for a similar product. With that in mind, it is vital for a company like UA to offer products that consumers are willing to pay a premium over mainstream, price-competitive goods. According to studies conducted, many consumers tend to buy based on brand recognition and association. Over the past years, UA has been expanding worldwide without fail, offering high quality products consumers are very satisfied with. UA sponsors some of the world's best athletes like Steph Curry to promote their