Major Competitors Nike and Under Armour Take On The World
In 2013, Nike and Under Armour were blowing industry competitors out of the water. Nike is a sportswear company that stands alongside many other famous brands as one of the top manufactures of sports related equipment worldwide. It seems that such a giant industry would be hard to compete with but many other industries have made heavy marks on the scene. For example, Under Armour with its fast selling products has made its way high up in the market recently. Do they have what it takes to compete with Nike? The near and distant future looks bright for both companies. While both commercial advertisements differ in many ways they also are similar. Nike focuses more on the mood of the athletes in the commercial. It shows that they are all happy, having fun, and loving life. While in Under Armour, it shows many athletes focusing on their fitness goals and working out. Nike advertises all over the world in the commercial. It shows many different countries with Nike everywhere. Both commercials promote famous
…show more content…
names. In Under Armour they focus on Aristotle and Nike they mention several different athletes. Nike focuses on the mood of the commercial more than anything. They promote more of a lifestyle than just selling their product. They wanted to just get there product out to the world and show that their product is famous worldwide to everyone. Throughout the commercial, they showed many people having fun because they had on Nike. Everyone was happy and looked like they wouldn’t want to be doing anything else. They showed people interacting with each other and talking about the different Nike apparel. Nikes intended audience was for everyone, not just athletes. They mainly showed young people but they weren’t all athletes, people of all ethnicities and sizes were advertised but they wanted to show that everyone can wear Nike and still love it. Nike shows that many of people in the commercial are successful with their lives and enjoy doing what they do. This commercial is mostly in black and white with accents on the Nike apparel. They do this to make it stand out to your eye. In this advertisement they only play music. The music is very calming and cheerful. There are not many words to inspire you they mainly focus on the music to make you feel happy and relaxed. At the end of the advertisement they advertise the logo in bright orange colors. Under Armour focuses on the fitness of athletes in their advertisement and selling their product. They focus on inspiring you with their words. Throughout the whole commercial, they showed athletes working out. The many colors and inspiring words helped you stay focused on the goal to become fit with Under Armour. Throughout this commercial they said “Erase All Doubt” which meant never give up and always stay positive to achieve your goal. They focused on Under Armour helping you get fit. The intended audience for Under Armour was athletes. Every athlete they showed was running and working out with Under Armour on. All the athletes looked the ideal shape someone would want to look. This commercial was meant to make you stay active by promoting their product. Under Armour says that when things get hard you have to push yourself harder and focus on the legacy. They say the Greek philosopher ‘Aristotle’ once said, “You are what you repeatedly do.” Under Armour says that they take it a little deeper and say “You are what you repeatedly do when things get hard.” These two advertisements were different in many ways, but they were also alike. In both commercials they mentioned famous actors/athletes. They try and put these names in your head because they know you want to be like them. When you hear those famous names you will remember them and they will stick in your head. These commercials both demonstrated the act of playing sports and being active. Also in both advertisements they showed places all over the world. Nike and Under Armour both are worldwide brands that are wore worldwide. They want these products to be seen everywhere. Nike and Under Armour have been major competitors for many years.
Under Armour hopes to grab 10% of the sportswear market in their future. While Nike has 26.38$ billion capitalization, Under Armour is at 1.28 billion capitalization. Although they are both very successful companies, they advertise things very differently. While Under Armour focused on the working out part and being fit, Nike just wanted to get the point across that everyone was happy and content while wearing Nike. Nike was very clear that they wanted everyone to be able to wear Nike and feel comfortable while doing it. Under Armour only focused on athletes. While both of these industries had some of the same intentions such as, putting famous names out there and showing countries all over the world with their brand, they had two different intentions in their commercials. Both companies futures look very bright but can Under Armour keep
up?
Overall, Under Armor did an outstanding job targeting young, aspiring athletes to do what they want to do with their life. They used logic to show how hard the athletes work along with emotion to show how serious they take their training. Finally, Under Armor used the credibility of the athletes to sell their new training shoe. This commercial will make anyone want to purchase a pair of shoes and workout themselves. Since the commercial is on such a serious level, viewers emotionally connect with it which makes Under Armor seem like the best brand
Under Armour’s product is swim gear. They sell their product by doing what Adidas did, used motivation, emotion, and a message to connect with the audience. But, Under Armour used a famous celebrity named Michael Phelps. The audience starts to pay attention to the ad and either feels connected or wants to be a better athlete like Phelps. Under Armour finally manipulated their audience into buying their
Under Armour is not only focus on football product; it expanded segments to baseball, hunting, fishing, running, mountain sports, skiing, hockey, and golf.
As Nike is an international company that has their product selling worldwide, they have countless of competitors, including many domestic local firm. However, not all of these companies have the power to compete with Nike, only a few international companies are Nike¡¦s major competitors, for instance, Adidas and Reebok.
They could overtake Adidas if they continue with their innovative strategy because they’re only $3.5 billion away. Since now-a-days consumers are all about technology and new innovative products, if Under Armour continues with their innovative strategy they will continue to see an increase of financial growth, become a major competitor for Adidas, and a closer competitor to Nike.
But what makes people buy the name brand Nike? They have great advertisement. I love to watch Nike commercials; they appeal to me as an athlete. The commercials show the inner fight in people, breaking records, becoming a stronger person, being the best you, and being the best athlete; you can be overcoming anything. I find their advertisement to be very inspiring and motivational. The Nike slogan ‘Just Do It’ plastered on so many products inspire others to get out and ‘Just Do It,' no hesitation. Nike tries to appeal to you to buy their products by placing their apparel on professional athletic. Everyone knows Lebron James he has many young athletes that look up to him and want to be just like him. What do they see Lebron James wearing? Nike apparel, for the kids that want to be just like him, they want what he has. So they want the Nike look. For me personally, I see Nike products and logos at just about all sporting events, which is a great strategy for the business.
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
Under Armour has always set aggressive targets for themselves and they should not change that now. The leadership team believes that “a 3% share of the (athletic footwear) market would nearly double UA’s total revenue” (Wheelen, Hunger, Hoffman, & Bamford, 2015, 2012, 2010), and this should be another one of the metrics that Under Armour monitors and grows.
Under Amour Company ventured into a market segment that was overcrowded, it had thousands of companies that competed against each other. Out of the many companies involved in the trade, the two most formidable threats seemed to be orchestrated by Nike and Adidas. These are two giant sports apparel and footwear, which pride themselves as having been long term veterans in the industry. Nike in particular was christened as the ultimate shoe and athletic apparel company with revenues of $18.6 billion, net income of $1.9 billion and more than thirty two thousand employees globally in the year 2008. This makes it the largest athletic shoe and apparel seller in the world. 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.
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.
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
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.
When comparing prices, consumers can find the exact same style Nike boot in Adidas and pay a lower price. Essentially what the consumer is paying extra for is the Nike brand. Looking back at my journal you can see I wore the Adidas boots one time, then went out and bought Nike boots. “Brand loyalty is based on an emotional connection toward the brand and a conscious commitment to find this brand each time the consumer purchases from this category.” 112 Brand Promotion I could have worn the Adidas boots for free but I spent the time and money to go purchase the Nike brand. “brand loyalty and advertising work together to create another important economic effect related to pricing flexibility and profits. When consumers are brand loyal, they are generally less sensitive to price increases for the brand.” 45 Advertising and Integrated Brand Promotion Being able to raise prices but still keep the consumer market is very valuable. This is one of the main reasons brands strive to have brand loyal
...fected by print advertising even if they don’t realize it. Nike uses all different forms of advertising to appeal to all audiences.
Nike American Sportswear generated revenue of 7495 million US dollars in 2014, which was almost double of 2009 revenue of Nike Sportswear (Statista, 2015).The sales of (Athletic) Sportswear of Nike 90 million US dollars, however, the sale of Adidas Sportswear (Competitor of Nike) was 25 million US dollars, which was not even one third of Nike Sportswear sales (Statista, 2015).Nonetheless, the return on assets and equity are 13.41% and 26.43% respectively (Yahoo Finanace, 2015).