Under Armour Case Analysis

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D’Angelo Franklin Sunday, September 7, 2014 MBA 671-D1B4 Week 2 Assignment Under Armour is a sports apparel company that was founded in 1996 by a former college football player named Kevin Plank. Plank was disgruntled with having to change constantly because of perspiration during physical activities. He created a clothing line made with synthetic materials that would absorb the perspiration and help the body to naturally cool itself (Thompson, Peteraf, Gamble & Strickland, 2014, pg. C-51). Plank did his initial testing on his very own football team; after success among them, he ventured out and finally was able to convince an equipment manager that his product was better than the generic cotton t-shirt. This was just the beginning of the company that would soon span into a multi-billion dollar industry. 1. Use a "Five Force" analysis to determine how strong the competitive forces are confronting Under Armour, Nike, and The adidas Group. Under Armour, Nike and the Adidas Group are in fact rivals with each other; however, they all have one thing in common of the “Five Forces” that brings about problems: substitutes. New Entrants into this industry can be very expensive and time consuming and it does not present much of a threat; one can see this through the difficulties that Under Armour experienced entering the market. Supplier Power is not a major challenge due to supplier competing for business between the various companies trying to win the business of manufacturers. Customer Power can bring about a challenge. Customers have the free will to spend their resources at any given place; however, customers are likely to invest in things that they really want especially with certain celebrity endorsements. Adidas cites about it various celebrity endorsements it uses to promote its products. Customers are inclined to buy certain products
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