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Essay on nike vs adidas
The current state of competition in the Nike industry
Introduction of Nike and adidas
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In order to beat its competitors, Under Armour Company can engage in market sensitive fresh product invention. New products are more likely to draw curiosity amongst the populations especially if they commensurate well with the prevailing trends (Hill & Jones 2009, p. 308).
UA concentrated on the outside-in (market responsive) approach to carry out its strategies. It is reported that it sourced unique synthetic materials and employed on field product development. This enabled it to create the performance apparel segment in the athletic apparel market.
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.
Through an inside-out perspective, Under Armour has been able to concentrate on the growth mission. Its mission is about building ...
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...d it to establish a brand image characterized by authenticity and quality. Moreover, they came up with a more enduring concept of ‘comfortable, sweet-wicking gear’ which help the perception of the Americans on athletic clothing. UA also managed to convince former team mates like Eddie George to wear its shirts. This strategy worked well, for it enabled the shirts to gain further and wide exposures.
Works Cited
Carpenter, MA & Sanders, WG 2007, Strategic management: concepts: a dynamic perspective, Prentice Hall, New Jersy.
Furrer, O 2010, Corporate level strategy: theory and applications, Taylor & Francis, New York, NY.
Hill, C & Jones, G 2009, Strategic management theory: an integrated approach, Cengage Learning, New York, NY.
Wit, BD & Meyer, R 2010, Strategy: process, content, context : an international perspective, Cengage Learning EMEA, London.
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 provides innovatively designed performance products that incorporated a variety of technologically advanced fabrics and specialized manufacturing techniques, all in attempt to make the wearer feel “drier, lighter, and more comfortable.” This is Under Armour’s core competitive strength.
Under Armor is viewed as a designer company for athletic wear. The company makes higher quality merchandise, which comes with a higher price tag. Under Armor’s line appeals to a wide variety of people, from upper class to lower class consumers. While it is easier for consumers in upper class society to purchase this high-end workout gear, it may not be reasonable to consumers in the lower class or even middle class markets. Companies such as Wal-Mart and Target can make a very similar product for almost half the price. To prevent losing these customers, Under Armor should consider a mor...
In an increasingly competitive market with strong rivals such as Reebok, Adidas, Nike’s latest strategy is offering consumers the shoes they desire. This is done by providing customers with the option of designing their own shoes. At Nikeid.c...
Strengths. Through the innovation of high tech undergarments for athletes who compete in various climates, Under Armour is the leader in the industry. The innovation has created a high quality apparel with brand loyalty. The fabric is moisture-wicking geared to high demand of a target market. The ability of
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.
Under Armour is a leading athletic clothing line directed towards the overall athlete who is looking for the most comfort during extracurricular activities. The mission of the company is, "to provide the world with technically advanced products engineered with exclusive fabric construction, supreme moisture management, and proven innovation. In short, every Under Armour product is doing something for you; it's making you better."
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.
The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's: place, promotion, product and price. UA’s four P’s match their target market perfectly. UA uses an ease of reach approach in placing its products. You can purchase items in stores or online, prices being somewhat cheaper than the competition but surely providing a deal for its consumers for the quality and performance given for their dollar. UA has also expanded into brand stores which provide another offering to consumers. The company uses a targeted market approach to save expenses related to extensive research. Its well defined target markets include the Hispanic market which has exceeds all ethnicities for its interest in fitness wear. Its international expansion is helping place its products within easy reach of buyers throughout the world.
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.
2. Thompson and Strickland (2002), Strategic Management: Concepts and Cases, 13th Edition, Chicago Irwin Publications.
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,
(ua.com) The mission statement is to make better and passionate about athletes is different from other competitor’s sports apparel companies like Nike and Adidas. The founder of Under Armour, and former football player Kevin Plank, change and improve the sports apparel industry by creating apparel that used synthetic materials that handled body temperature and regulate it. This enhancement in apparel to regulate temperature is powerful to athletes because not only will they be stronger but last longer in stress situations. As an outdoors person and a long distance runner I have experience the advantage of this apparel and notice when it is worn that the shirt does not become drenched in sweat which creates less weight. This has created the apparel of choice under armour historical milestone, product offered and designed, among under armours competitors who are they and where there with respect
One day I was at school, and I noticed most of the class was wearing Under Armour. One girl had an Under Armour headband on, another had a T-shirt. I saw others wearing Under Armour shoes, shorts, sweatshirts, and socks. This got me thinking about how Under Armour got started. Under Armour has a captivating startup and success story. Today they’re widely known across the world for their athletic clothing for all sizes, genders, and ages.