Introduction Under Armour, founded in 1996 by former University of Maryland football player Kevin Plank, is an American sports apparel company headquartered in Baltimore, Maryland. Kevin Plank had the idea of making a t-shirt that is able to enhance athletes’ performance by controlling the body’s temperature and acting like a second skin. Since forming the company, Plank has succeeded in building Under Armour into a worldwide operating company that offers a wide range of premium priced sport articles including performance apparel, footwear and accessories. In 2014, Under Armour was able to generate sales revenue of $3.08 billion (n.d.) of which the majority comes from Canada and the United States. 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.).
Real Madrid Football Club Strategy The president of Real Madrid Football Club’s strategy is to pay a lot of money for top talent, win a lot and expand all lines of business. It also has a new marketing strategy that aims at strengthening the value of the club’s brand. In this marketing strategy, the club focuses more on the Far East but this concentration has switched to the Gulf in recent times. Strategic Mission The club’s strategic mission is to leverage the Real Madrid brand globally. In doing this, it will be able to maintain its position as the biggest football brand in the world.
ENVIRONMENTAL SCANNING The Internal Assessment Marketing* * Target Market: Male and Female around 18 – 34 y.o. * Positioning: High performance shoes designed with hi-tech features * Have many brands and products model for each type of consumers. * Have high allocation of advertising budget for endorser contract, TVC, print ads, and sponsorship activities. * Have top endorsers that are the champion in their sports areas. Distribution* * Nike has worldwide distribution line * Nike has good distribution line to retailer * Nike has new ordering system, named Futures Ordering Program Research & Development* * Nike has NSRL (Nike Sport Research Laboratory) and APE (Advanced Product Engineering) which cooperated in developing and executing idea * Nike did direct research to the athlete by accompanying their daily activities to find the best suitable product * Nike always developing superior technology to compete with others Management Style / Culture* * Knight as CEO Nike, is an former athlete of long distance run * Nike working culture is established as camaraderie and cooperative culture.
Although its main target started out being collegiate and professional athletes that could really benefit from the use of Under Armour products, it has also obtained a following of youth, adults, and nonprofessional athletes. Some of this could be young people looking up to professional role models and wanting to wear the same products seen on the field. Most of its products are expensive due to its high quality so it targets people that have a higher income that can afford its products. Economic-Being in the textile/sports apparel industry, Under Armour must deal with increasing prices in the textile industry, increasing labor prices in China, increased shipping costs due to the oil and gas price increase, and also increased inflation. Many people are experiencing hardships due to the recession and the high unemployment rate in the United States.
Product “Heat Gear” Under Armour is classified as a private company which was founded in 1996 as “Under Armour Athletic Apparel”. This company employs around 2,200 employees and has net revenue of $174.8 million (Under Armour, Inc. - Under Armour Reports Fourth Quarter Net Revenues Growth). The products of Under Armour Performance Apparel have become one of the top choices of athlete around the world to wear under their uniforms during games or practices ever since 1996. It all began with college football player Kevin Plank from the University of Maryland (International Directory of Company Histories, Vol.61. 2004), who designed a T-shirt to draw sweat away from the body and into a lightweight microfiber fabric.
Nike started out from very humbling beginnings. Bill Bowerman wanted a lighter and more durable shoe to give his athletes an advantage during their races on the track. Phil Knight was simply a college athlete who graduated who was not ready to give up his life in the athletic world. From selling their first shoe models from the back of Phil Knights car to a fortune 500 company makes Nike one of the biggest success stories in the world. Although Nikes logo the Swoosh is one of the most famous logos ever, Nike reached its level of greatness by diversifying its company and buying several brands along the way to help increase the strength of the company.
For the international expansion, Zara started from European market first, which is closer to Spain both in geography and culture. Nowadays, Zara is trying with emerging market like China and rest of Asian countries, as well as other developing countries in south America, America is considered as one of the biggest potential market to Zara because of the large population and great consumption capability. BM By reaching these goals, Zara define their business model as: to ooffer frequent buyers, highly designed products using fast and flexible production as a result of the constant communication between the customers and store managers. TARGET CUSTOMER Customer interface is also an important element to business model, customer interface insists of target customer, distribution channels, and customer relationship. Define the target customers can help company understand what will pay for their products and analysis the common characters of these customers in order to be more accurate to these customers and achieve their selling goals, then make profits at last.
They have around 6000 stores in USA and 2000 Stores in UK, Japan and Canada. External Enviorment * The external analysis of the sports apparel will describe the attractiveness of the industry. * Amour has a high threat of substitute, high competative rivalry and a they need to be differentiate their product. * If they can differntiate their product that time they can gain more profit, else competitor will take the advantage. * Moreover, they can cover more population as the demand of sports wear and apperal industry demand is increasing day by day.
The distribution networks of the new companies are high and tends to affect the operations of JCP. Therefore, the company should build a strong distribution network so as to counter significantly the operations of the new companies that produce similar products. The “mom and pop” stores have been reported to resort in selling products online, otherwise they become obsolete. J. C. Penny’s SWOT analysis The strengths of the company are: * The existence of more than 1100 locations worldwide * Their quality products such as clothing, jewellery, beauty products and even footwear and furniture * The company also offers shipment of their goods for customers, which gives their customers the best experience in the end, hence attracts more customers. * The company also offers free haircuts for the children The weaknesses of JCP Since its competitors give similar products, the company is faced with limited market share 2. International business operations have also challenged the services of JCP due to the current emerging economies worldwide.
Under Amour case Porter’s five forces competitive Supplier Power: High Huge amount of raw material are available on the market. The company always ensure best supply source not only in quantity but also quality. Nowadays, with the use of modern technology which make the products differentiation become higher so the suppliers also increased very strong. Buyer Power: HIGH With a huge numbers of apparel companies available on the market which created variable products options for customer, whole seller and retailer. Each brand have variable of style and product design so they sometimes have to make decision on the offers from different brands with same quality, and price.