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
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used vertical integration‚ a system of related businesses in which a parent company owns its suppliers‚ to increase his businesses efficiency levels. Carnegie bought out the companies and suppliers that carried the raw materials and services he required for his business. He was able to control everything he needed‚ and make agreements with other companies to buy his steel. Using this method‚ he saved money and increased his profits. The Walt Disney World Corporation also uses vertical integration
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1. a. Under Armour’s major competitive advantage is in its product concept. It produces athletic gear that enhances the performance‚ uses high-tech material that gives clothes a snug fit and wicks away moisture‚ keeping athletes cool‚ dry‚ and feeling “light”. It has a unique product. b. It frequently uses free endorsements. c. It has achieved a very rapid growth in a short period of time. It’s revenue has increased by almost 6 times between 2003-07. d. Under Armour brand is identified with performance
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Under Armour‚ Inc. : Company History In 1996‚ as a football player at the University of Maryland‚ Kevin Plank grew tired of the cotton t-shirts he was provided becoming soaked with sweat and rain‚ impeding his ability to move fluidly as a special-teams player for the Terrapin football team. Knowing that cycling outfits and football under shorts were made with a "moisture-wicking synthetic fabric"‚ Plank believed it possible to make a t-shirt out of such material. He observed the content label of
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Under Armour In the early 1990s all athletes that wore undershirts were made of cotton and caused the players to be hot and sweaty during and after the game. In 1996 the special team’s captain on the university of Maryland football team got an idea. Kevin plank thought to himself “there has to be a better idea” After he graduated‚ he was determined to figure out something better. He wanted a shirt that stayed light and dry no matter how hot it was. After searching all around New York’s famous garment
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IBM 4711 International Strategic Management Under Armour: Working to Stay on Top of Its Game Perform a STEEP analysis to understand the general environment facing Under Armour. How will the firm be affected by external factors? Ans. Each factor under STEEP analysis giving Under Armour more information about how company should adapt itself‚ in order to be survived in the market. Let’s see the effects of these external factors to the company’s strategies each by each. Social factor Demographics
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Under Armour- Challenging Nike in Sports Apparel By Shruthi Purushothama Under Armour was founded in 1996 by Kevin Plank‚ a former football player with the University of Maryland. Plank came up with the idea of using newly available moisture-wicking‚ polyester-blend fabrics to create next generation‚ tighter-fitting shirts and undergarments that would make it cooler and more comfortable to engage in strenuous activities during high temperature conditions. The company was originally named KP Sports
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Vertical Integration Vertical Integration deals with the degree to which a firm owns its upstream suppliers and its downstream buyers. When a firm becomes vertically integrated it means that it has incorporated all the aspects of the supply chain including manufacturing‚ distribution‚ warehousing‚ and even retailing. Specifically there are two types of vertical integration‚ backwards and forward integration. Backward or upstream integration is when a firm takes command of a function that its suppliers
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Vertical integration is the process in which several steps in the production and/or distribution of a product or service are controlled by a single company or entity‚ in order to increase that company’s or entity’s power in the marketplace. Simply said‚ every single product that you can think of has a big life cycle. While you might recognize the product with the Brand name printed on it‚ many companies are involved in developing that product. These companies are necessarily not part of the brand
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Zara Case: Vertical integration and outsourcing 1. How is Zara organized with respect to its vertical integration and outsourcing decisions? What governance structure does it appear to follow? Support your conclusions with reference to details of the Zara case and the Ferdows reading. Answer: Very well organized to facilitate its strategic competency: speed and flexibility. Decentralized governance structure fully supports the company core competency. The above supply chain mapping
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