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Under Armour’s Strategy in 2014. Potent Enough to Win Market Share from Nike and Adidas
Case analysis Under Armour's strategy in 2016
Case analysis Under Armour's strategy in 2016
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Recommended: Under Armour’s Strategy in 2014. Potent Enough to Win Market Share from Nike and Adidas
Understanding the competitive forces in the sport apparel industry is very important to analyze where Under Armour stands and where the brand wants to be in the future. Porter’s Five Forces model provides a frame which helps to determine the situation and attractiveness of the market.
UA and its rivals are in very intense competition to get bigger market share in the sport apparel industry which is projected about 165 billion dollar revenue in 2017. (Total Revenue of the Global Sports Apparel Market 2011-2016). Intensity of this rivalry is due to high demand and low switching costs. Since a large number of companies in the industry offer very similar products, the big brands like Under Armour, Nike and adidas need to find ways of creating differentness from others to sell more products.
5. The mission of Under Armour highlights the key elements of UA’s strategy. “To make all athletes better through passion, design, and the relentless pursuit of innovation” (Under Armour Case Study).
Growth Strategy – Expanding its distribution channels to become a global brand and reach all athletes.
Product Line Strategy – Offering products for athletes’ better performance and comfort in a widening variety of sports.
Marketing and Brand Management Strategy – Showing the passion and pursuit of innovation to create strong global awareness of the brand.
6. Under Armour adopts the broad differentiation strategy to aim large number of customers. The brand clearly sets itself apart from the rivals by using synthetic moisture-wicking fabrication which is different than rival brands’ natural fiber -cotton -fabrications. The brand’s unique ‘moisture-wicking’ feature for performance apparel provides ‘unique’ customer value proposition which gives Under Armour an ability to command higher price for the brand’s
Sarkar, A. N., & Singh, J. (2005). New paradigm in evolving brand management strategy. Journal of Management Research, 5(2), 80-90. Retrieved from http://search.proquest.com/docview/237238894?accountid=28644
Lululemon Athletica, Inc. (Lululemon) is renowned for its technical, high-quality yoga-inspired apparel for women. However, the company is growing beyond this niche market and is therefore altering its competitive strategy. Lululemon utilizes a broad differentiation strategy because its target market is broad and its product line is varied, it stresses product innovation, and its community-based marketing and retail experience sustain its differentiation from competitors.
The reason consumers select Under Armour is because the brand is innovative. They’re constantly creating new products. Under Armour is the originator of performance apparel. That is what attracted their first customers, their present customer, and future customers. Add that with their marketing, and that is what helps make the company what it is today.
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
By putting the warehouses in strategic locations, you provide better access to those customers in more remote locations. By taking advantage of this, Under Armour will not only expose itself to new customers, but will be able to continue to dominate the athletic performance apparel industry.
The first recommendation for Under Armour is that they should build on its relationship with veterans and first responders. In order to do this they should continue to offer the ten percent discount to these groups. Additionally Under Armour will develop a marketing campaign that appeals to veterans and first responders, and builds Under Armour’s reputation as the brand that supports those that support us.
This company has seen major expansions in outlets throughout the world over the years. Adidas on its part has managed to build a powerful brand through its technological innovations and aggressive marketing where they spend up to thirteen per cent of their revenue besides offering high quality services. These scenarios seem to present Under Armour with a massive competitive disadvantage. Through an inside-out perspective, Under Armour has been able to concentrate on the growth mission. Its mission is about building ... ...
The sports apparel and accessories industry has a highly competitive market. Businesses are constantly competing for elite athletes to sponsor, raw materials, and every opportunity to expand. Under Armour is able to not only survive but thrive in this market because of their ability to think outside of the box. They are constantly creating new and exciting products that help athletes everywhere.
There are as many brands as there is ants in the world, but the two brands that pop out are adidas and nike. Those two brands have been going head to head for ages to see who is the better brand. It’s been tested, compared, and debated which brand is better. Whether it’s the quality of the materials or the cost of it, the debate is ongoing. Both brands have been fighting for the top ever since they were both created and I don’t blame them it’d be fantastic to be the best brand in the world. When Nike and adidas are contrasted, it becomes clear that the Adidas brand are better for the overall consumer and enhances sport performance than Nike.
The marketing goals are: Increase customer retention, Increase eCommerce Sales, Increase our Community Involvement. The first goal specifically works towards reaching 60% repeat sales through different promotional strategies like emotional marketing and sponsoring different professional athletes. Customer retention is extremely important to maintain Nike’s market leader position. Increasing eCommerce is a major focus for Nike. Last year we were able to increase our eCommerce sales by a profitable 51%. Our second goal is to continue this trend by increasing online sales by 50% every year for the next four years. It is our belief that doing so will solidify Nike as a leader in the online athletic market. Nike truly believes that sport can change
To recover the ground it lost, adidas-Salomon needs to go back to its core business which is the footwear and apparel, and exploit opportunities in this division; namely the heritage and sports style footwear and apparel lines which expect 40% growth. The company also needs to increase its market share in North America to be able to substantially increase its growth rates and profitability.
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Nevertheless, Nike is an extremely diverse company with outstanding organizational structure, impressive marketing strategy, and innovative products. The organizational structure of the Nike Corporation helped them become a leading innovator for the world with creative apparels and shoes. Their intelligent marketing strategies assist them in advertising their products to motive their customers and sell them. Their innovative product motivates customers with great performance footwear and quality designs to take on any obstacles. The Nike Corporation discovers various ways to improve their organizational structure to inspire the world.
Nike is an American multinational company that designs and manufactures footwear. The company also caters apparel, accessories, and equipment of sports. The objective of the footwear company is to bring innovation and inspiration to every athlete. The company delivers innovative products in order to exceed customers' expectations. Nike creates leaders and inspires athletes to achieve their vision and goals. The firm prefers a culture of the invention at the workplace and encourages employees for achieving something unique and bigger. Nike has a global procurement team that manages the whole process of Nike including selection and making a contract with the right supplier for a long-term basis. The company is ambitious to provide innovative
This project concentrates on the Nike Sports shoe; Nike is one of most significant shoe manufacturing company worldwide. Sportswear manufactured by Nike is known for quality and is most liked brand of athletes. (Daniel, 2011)