What does a SWOT analysis reveal about the overall attractiveness of Under Armour’s situation? 5. What are the key elements of Under Armour’s strategy? 6. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Under Armour is employing?
Under Armour’s vision is to become the world’s leading performance athletic apparel by pursuing the mission of making “… athletes better through passion, science, and the relentless pursuit of innovation” (n.d.). Problem Identification The following section provides a detailed analysis of the competitive environment in the sportswear industry using Porter’s Five Forces Model. The aim is to determine the attractiveness of the sportswear industry as well as forces that will have a significant impact on competitors’ strategies in the future. Rivalry- High Risk The sportswear industry is a very diverse and highly competitive industry. Big companies try to capture the whole market, whereas small businesses target a specific niche.
1.0 Barriers to Entry in Sportswear Industry Sportswear Industry in general is difficult for potential new firms to make an entry as the threat or barriers to entry as according to Porter’s Five Forces model are extremely high. Established firms in the sportswear industry already have a foothold on their branding, marketing and product innovation which becomes a tough task for new firms to make a breakthrough in the industry. These potential new firms aiming to enter in sportswear industry do have to take note of the high difficulty in obtaining market share which not many new firms could sustain in. They are also at a price disadvantage when rivalled by established firms in the industry who can manipulate the pricing to their respective buyers as they provide mass production and their products are always in demand due to their brand and market awareness which they should have build upon over the years. 2.1 Branding Branding can be seen as a vital area under Porter’s Five Forces Model, barriers to entry.
Additionally a closer inspection on the critique of his theory and a look at how his model can be complimentary to other strategic tools and as well as further developed in order for a firm to create a competitive strategy. The strategy in which a firm decides to adopt is important as it can help explain an individual firms success or failure in obtaining or sustaining competitive advantage. In Porter’s view an industries overall competitiveness and profitability are attributed to five different forces (Porter, 1979). These are (1) Competition in the Industry (2) Potential of New Entrants (3) Power of Suppliers (4) Power of Customers and (5) Threat of substitute powers. When looking at Porter’s five forces in relation to industry analysis, we see both the analysis of a tangible situation (customers, suppliers, and competitors) and on predictive developments (new entrants and substitutes) (Recklies, 2001).
They also need to be aware of newer competitors such as Under Armour. 2. [PDF] Under Armour—Challenging Nike in Sports Apparel highered.mcgraw-hill.com/.../19e_CaseAsssignmentQuestionsTNCase_5.... 1. How strong are the competitive forces confronting Under Armour, Nike, and The adidas Group? Do a five- forces analysis to support
Porter’s Five Forces Analysis UMUC Haircuts UMUC Haircuts Medium- high prices for new business owners Medium- high prices for new business owners High- supply prices defines the type of product and profitability of it. High- supply prices defines the type of product and profitability of it. High- quality of products and services are expected High- quality of products and services are expected High- Several businesses offering similar services High- Several businesses offering similar services Figure #1. Porter’s Five Forces Analysis. Adapted from http://www.mindtools.com/pages/article/newTMC_08.htm 1.
The company had boosted its market share from 0.6 percent in 2003 to an estimated 2.8 percent in 2011, which compared quite favorably with Nike's industry-leading market share of 7.0 percent and the 5.4 percent share of second-ranked adidas.1 Founder and CEO Kevin Plank believed Under Armour's potential for long-term growth was exceptional for three reasons: (1) the company had built an incredibly powerful and authentic brand in a relatively short time, (2) there were significant opportunities to expand the company's narrow product lineup and brand name appeal into product categories where it currently had little or no market presence, and (3) the company was only in the early stages of establishing its brand and penetrating markets outside North America. COMPANY BACKGROUND Kevin Plank honed his competitive instinct growing up with four older brothers and playing football. As a young teenager, he squirmed under the authority ofhis mother, who was the town mayor of Kensington, Maryland. When he was a high-school sophomore, he was tossed out
1. Evaluate the wisdom of Tambrands becoming part of Procter & Gamble. Tambrand’s wisdom of becoming a part of Procter and Gamble (P&G), was a very smart and calculated occurrence. Tambrands only product, the Tampon Tampax was best selling Tampon in the world beating mega firms like P&G in its initial year capturing 44% of the Global market share conducting 90% of its sales in North American and Europe. Tambrands desire to expand globally was essential because of market saturation and competition in the current market.
(Patriarchy) the plot is mostly male. Gender stratification refers to males and females unequal access to power, prestige, and prejudice. In this video the males are the ones with the power per say because they are the one’s battling and have the “fire power” (guns). Out of the females shown only on one instance does a female character have a weapon. How can you compare a hand gun to the male characters having “super powers” and control of army like tankers during their battles?