Substitute Products: Low – With all the performance apparel companies that are currently in the market, this creates competition, which will in turn provide products that are similar with a cheaper price. Being that more than half of Under Armour’s customers are athletes, there is a need to create high quality products. They have to set their prices high in order to capitalize on them being athletes. The apparel also provides the best comfort. Supplier Bargaining Power: High – By having a great deal of raw material available gives the suppliers a big advantage over their competitors.
Big companies try to capture the whole market, whereas small businesses target a specific niche. More importantly, there are a few dominant players (i.e. Nike, Adidas, Under Armour) that already have a significant grasp of the market. Since the sportswear industry is a mature market, companies try to expand their customer base by spending a large amount of cash flow on product innovation, advertisement, and sponsorship. The companies especially try to attract customers from competitors, making the competition even more intense
You would have to keep buying cheap clothing, and it would end up costing you just as much as the expensive clothing. Everyone knows clothing that lasts longer is worth the price. Expensive stylish clothing accents your body. By doing this it builds your self-esteem and makes you feel great about yourself. Feeling great throughout the day is important.
Everyone wants to have as many gadgets as possible because they believe that gadgets would increase comfort and convenience. They think that it is important to rely upon technology as it represents the ability of equipment skill as well as living status. The society is certain that the more gadgets they have, the more established their life would be. This is because technologies such as mobile phone, treadmill, play station and many more are expensive and can only be used by people who are technology savvy. Despite of this believe, less do people know that too many technologies lead to obesity as people are not physically active.
As this market sector is highly competitive the company follows a prospector strategy, which is the most forceful of the four main aggressive business strategies. This calls for maximizing expansion into new markets and robust promotional activities that generate new opportunities. Consequently, its organizational structure is highly decentralized in order to allow greater autonomy of the various divisions in seeking a greater market share. Other characteristics of this strategy are headhunting new talent, often in an opportunistic manner from the competition, high product failure or rejection by the target market, and price skimming in order to recapture overhead and R & D costs. Motors and More’s center of operations are located in the southern United States in a municipality with a population not exceeding 30,000 and has a low
The company is also very successful in performance and market campaign. Under Armour company has also product performance, brand image, in-house Marketing and brand promotion. The SWOT analysis of the company: Strength: - Their fabrics are designs and styles to fit all the climates -Innovation and technology, which is the primary key of the company success and expansion - Products performance, brand image Core competence in research development Weakness * The product line is designed for mostly males customers so its very limited * Product line expansion Opportunities * By expanding their product line they can increase sales and product portfolio * Expand Globally Threats * Very intense competition with Nike, Adidas and many others *
Adidas has especially been gaining ground on Nike boosted by its strong presence in sponsoring the European soccer tournament where it sponsored eventual winners Spain (Torry 2012). According to Marketing Weekly News (2012), Adidas is also planning on moving into the more fashion-aligned market of teenagers which could see it improve global market share. NEO, a fast fashion adidas sub-brand aimed at teenagers is Adidas’ attempts to enter new apparel segments that will even pit it against the likes of H&M and Zara in an effort to gain market share and squeeze more profits out of mature industries. Another threat of entry is posed by Under Armour Inc. an established company in the athletic sportswear in the USA which in 2009 decided to enter the U.S athletic footwear market creating competition in a market which had been dominated
Porter’s Five forces model This section will analyse Porter’s five forces for the global luxury goods market by looking at the wholesalers/retailers of luxury goods as players. The report will take the end-user or customers as key buyers and manufacturers as key suppliers. Forces Strength Competitive Rivalry The competitiveness in the industry is relatively high due to the number of big and small players in the fashion industry. Particularly, in the high end, there are a good number of designers which compete with similar products within the same customer base. However, it is important to recognise that the competition in luxury fashion is not based on price but rather on image perception and brand value and quality.
Recruiting Like many retailers, Tanglewood has high recruiting needs in entry level positions due to a high rate of turnover. Tanglewood’s current recruiting methods vary from one region to the next. By assessing these various methods and comparing their overall effectiveness, we have a good opportunity to improve the recruiting process, thus optimizing the operations of this organization. We will review the target demographics, and look into the methodology of each region’s present recruitment styles. The desire to create a unified recruiting process will be reviewed and evaluated, with an ultimate goal of devising a functional, efficient and profitable recruiting service for this organization.
Every one always tries to expand its market and strengthen its exiting position over others. Giordano is a retailer of casual cloths in East Asia, South East Asia and the Middle East. Its present situation is very much strong. We have analyzed the case of Giordano titled as “GIORDANO: MAKING A VALUE FOR MONEY: high volume, high quality service strategy work”. The whole case covers company’s management value and style, stringent recruiting process, functional smoothness & simplicity, key competitive strengths, product positioning, competitor’s situation and their growth strategy.