Strategic Management Under Armour

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Kenya Sparks Case Study 2 5 March 2015 Under Armour’s Strategy in 2013 The Industry The sporting goods industry is compromised of sporting apparel, athletic footwear, and other related accessories. This is a multi-segmented, global industry with more than 25 brand names that offer diverse product lines and small competitors that offer specialized-use apparel lines. Participants in this industry provide are mainly athletic and leisure footwear companies, athletic and leisure apparel companies, sport equipment companies, or larges companies with diversified line of athletic gear. Nike is the current global marker leader with other prominent competitors being Under Armour, adidas, Puma, Columbia, Fila, and Polo Ralph Lauren. The Five Forces in the Industry The five-forces model of competition is compromised of the competitive forces that affect industry attractiveness. These forces go beyond rivalry between competitors and include pressures from four sources that coexist. Buyer bargaining power in this industry is low because of the wide assortment of products that are offered by the brands in this industry. The only options they buyer’s have are to pay the brands’ posted price, delay the purchase until they are lowered, or go somewhere else. Buyers in this industry rarely switch between several sellers in the sporting industry. The brand loyalty for companies like Nike and Under Armour in the sporting good industry is high. Buyer demand for products in sporting goods is high. From professional athletes to the now-and-then gym goer, buyers are always demanding more products from this industry which allows the companies to charge whatever they want because its a seller’s market. Competitive forces of substitutive products are prevalent. The apparel section of this industry has a lot of substitutes that are readily available and attractively priced. Buyers

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