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Under Armour uses logos to become a better company through commercials by expanding their
They process products through third-party distributors located in Canada, New Jersey, Florida, and leases distribution facilities in California and Maryland to channel products through its wholesale and retail networks in North America. Wholesale sales generated through national and regional sporting goods chains, department store chains, institutional athletic departments, and teams and leagues accounted for 68% of revenues in 2013. Under Armour saw a need for diversification of revenue streams and embarked on a mission to change their model. They saw by building a strong retail network to sell directly to its consumers they could do just that. One way they did that was to have factory-house stores in North America, China, Japan, Mexico, Brazil, and other countries where they attach a retail store to their factories.
Brands like Gucci, Louis Vuitton, and Chanel were all unable to reach the sales Nike had reached. I think I can explain why that is the case. Picture this, you are in a Macy's at the mall and you see to black long sleeve shirts. The one to the left is a plain black long-sleeve with no logo and let's say it’s about 14.99. The one on the right is a black long-sleeve with the Nike slogan “Just Do It” for about 39.99.
The road to becoming a legitimate competitor has been tough, specifically because of the competitive nature that exists between firms in the same market. The market structure, determinants of supply and demand, and future outlook of the company can help us see the state and performance of Under Armour. Under Armour’s is an example of a monopolistic competition, meaning they have aspects of a perfect competition market structure, but their products are not the same as its competitors. As mentioned above, Under Armour’s main competition is both Nike and Adidas. Recently, Adidas has
STRENGTH Dominant market position built on a strong brand portfolio NIKE is one of the largest sellers of athletic footwear and apparel in the world. The company's dominant market position is built on its portfolio of strong brands like NIKE, Jordan, Converse, and Hurley. The company's strong brand portfolio and enhanced retail presence enable easier customer recall as well as help it to drive top line growth and to attain a competitive advantage over its peers. Focus on R&D activities The company's continuous focus on R&D activities has been its key driver to maintain a leadership position in the athletic footwear and apparel market.
Under Armour faces a twofold challenge, in the product and market area. Their heritage product category was compression Heat-Gear, and Nike the major competitor, was planning to take control of the new customers generations by creating a whole new line called Nike’s Pro Combat. Besides that, the marketing side was also having struggles. Since Nike created a strategy in which a strong emotional connection with customers was developed. This would have as repercussion the displacement of the Under Armour brand and therefore the slow decline of the company.
One of the big reason Nike is so special is because are constantly exposed to their things whether it’s that new pair of shoes or that nice shirt. We see and buy those things on a regular basis and do not think twice about it. So many people like athletic and sports gear and Nike is well aware of this and they take advantage. To Nike’s advantage, LeBron James is a megastar and we all witness his greatness.
2.0 Competitor Analysis The industry that Under Armour is involved with is extremely competitive, with competing against big names such as Nike or Adidas. Although it’s hard at the beginning, but customers want to have the highest quality apparel therefore they turn to Under Armour. Under Armour stays in the competition by having high quality products, and also by signing endorsements deals with major athletes (Owusu, 2017). By having major athletes represent Under Armour, means the company will be bringing in "big money" because they will bring up the brand’s popularity. The major competitors in this industry are of course inclusive of big names such as Adidas, Nike, Dick’s Sporting Goods and Puma.
It has strong brand recognition among athletes. That being said, Under Armour has to seriously consider expanding internationally to cover more markets. It should also work on products diversification and innovative designs. The following sections of this report will support the recommendations presented because they were based on the results of implementing external and internal
Company Description Nike believes diversity and inclusion drives innovation that lead to a competitive advantage. Nike has a broad base of suppliers that actively and significantly support their business requirements. Nike’s Global Procurement team manages the procurement process, including selecting and contracting with the right suppliers for the right goods and services. They have also begun to reduce Nike 's footprint and lessen their impact.
As each of these companies begin to diversify from their initial product and target market competition intensifies between. For example Nike and Adidas are in direct competition with each other as both provide branded sports gear but each are beginning to move into producing less sport orientated clothing
It will be easily giving the consumer make the decision in short time when buy the Nike’s product without compare with other Nike retail. Weakness 1. High Prices Nike is a strong brand at the global market and it normally sells the product in the market with high price to get higher margins and profit value. However, many competitors cost of the footwear is lower than Nike in the market, particularly in emerging markets, this can give consumers get many choice about the footwear.
Simply put, Nike’s target market is mainly customers who have more concern for the quality and utility of the product than they have for the price at which the product is being sold. This helps to ensure that pricing never has to be adjusted downwards in attempts to woo in a larger number of customers. For any company to achieve success from the marketing strategies that it has put in place, it has to ensure that its strategy is flexible enough to keep up with the changing times and to also accommodate a large variety of customers. So as to do this, it is imperative that the products being produced by the company be innovative enough to exceed what is being provided by competitors in every possible way. Nike chose to take this into deep consideration and this resulted in it making a few changes on its marketing strategy.
Competitors: PUMA, K-Swiss Inc., LaCrosse Footwear, Inc., Dick 's Sporting Goods, Inc., New Balance Athletic Shoe and Adidas – (Adidas have currently branched out into customization of footwear products. To sustain its competitive advantage over competitors, Nike has to take this to consideration). However, a large number of competitors in an industry usually indicates lots of demand for the products or services provided and this will help Nike to succeed in the long run. Suppliers: Nike outsources almost all of its footwear production to independent third party suppliers. As Nike has a minor control over quality of the products.
NIKE The Factors that Led to Success and Failure of Nike in its Venture across International Markets Abishek TR* Abstract- Key words: INTRODUCTION The largest American suppliers of athletic shoes, apparel, and sports equipments .At the same point of time ,this company is known worldwide .The Success of this company is the result of the various strategies used in the international market expansion which helped them to enter into new markets and to strengthen its position in the traditional ones .
