Starter Brand had a great concept and opportunity to establish themselves as the key sports licensed apparel company. They set a trend with their jackets and style, they produced a product made of great material and they offered fans the fantasy of being able to dress like their favorite teams and idols. Starter’s model was simple. By purchasing the rights to use league’s and their team’s names, color schemes and logos, Starter was able to make high-grade apparel that was so appealing that professional athletes would even wear them for style while representing the team they played for. They were aware of the loyalty fans wanted to flaunt, Starter gave its customers the opportunity to make a public statement on what teams they root for and …show more content…
With more companies in the mix, Starter has to contend with them in the market. With more options in the industry, fans could choose to purchase product from them. In addition, without being the exclusive partner or making it a part of their contract, the leagues that are providing the rights can sell them to whoever they want. The rights ownership process became a bidding war and if Starter was not willing to pay more, their only other option would be to let the rights go, which is not an option for a company who depends solely on the …show more content…
With labor disputes and lockouts with some professional sports leagues and the unusually warmer weather throughout the year (jackets weren’t being worn as often), the company was experiencing more hardship. The Leadership was not capable of adapting to these conditions as changes were not being made. The solution should have been to find other ways to be successful in the market outside of sports licensed apparel. When a business entity relies on one main product, they are setting their self up for failure because you are just a “one-trick pony”. Kevin Plank, CEO of Under Armour, was aware of this idea. When he started Under Armour, his main product was shirts made of high-performance material. This was an innovative step in active-wear, but Plank knew that he could not limit his company to just that. Today, Under Armour is a staple in the athletic industry. With active-wear, lifestyle products (exercise monitors, mobile applications, etc…) and footwear, Under Armour is embracing the Innovator role which is translating to a tremendous amount of success. (Harrison,