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Nike and adidas comparison essay
Nike and adidas comparison essay
Athletic apparel swot analysis
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1.How strong are the competitive forces confronting Under Armour, Nike, and The Adidas Group? Do a five-forces analysis to support your answer.
The Under Armour brand has seen a huge surge in popularity and recognition in recent years. This is a company that has been on a fast track: founded in 1996, it went public in 2005 and has been growing at 20% per year since. At just under $1 billion in revenues, it is still a much smaller company than its rivals Nike ($19 billion in revenues) and Adidas ($13 billion in revenues), but when you consider that Nike and Adidas revenues are from worldwide sales and include sub brands such as Umbro and Converse (in the case of Nike) and Reebok and Rockport (in the case of Adidas) the level of direct competition
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They make sportswear for all levels from youth to professional and sell footwear, apparel, and accessories to men, women, and kids in all sizes. They have also expanded their business all over the world to sell to many different countries. Under Armour has a unique dry-fit clothing line that keeps them separated from some of their main competitors.
3. Does Under Armour have any resource strengths or competitive capabilities that qualify as a distinctive competence?
Under Armour believe the distinctive trademarks they use in connection with their products are important in building their brand image and distinguishing their products from those of others. These trademarks are among their most valuable assets. In addition to Under Armour distinctive trademarks, they also place significant value on their trade dress, which is the overall image and appearance of their products, and they believe their trade dress helps to distinguish their products in the marketplace.
4. What does a SWOT analysis reveal about the overall attractiveness of Under Armour’s situation?
Strengths-1. Under Armour major strength is its products and strong brand
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
It is important to evaluate the ins and outs of a company to provide valuable information on the standings and future standings of the company. It also provides insight to develop strategies for long-term growth and shows potential threats that may hinder the bottom line. Strengths The strength portion of the SWOT analysis shows the internal environment, which are the controllable components of the firm that give a competitive advantage. This allows them to purchase high volume items for a lower cost.
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
And finally Nike and Under Armour are both very good companies and many people go to both stores. Nike and Under armour are both good sports clothing stores but I prefer nike. I like Nike more out of the two because I think nike is better becuase Nike sponsors more NBA basketball players`I think Nike is a cooler company and that's why I like Nike
Under Armour’s target market is consumers that are involved in physical activities. The demographic age groups that they cater to varies from youth to adults. Their products can with stand any weather condition from cold weather to warm weather, which means their product can be used in any geographic location. These consumers can be either light user like walkers or heavy users like football players.
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."
The second recommendation for Under Armour is that they should develop a shoe line and marketing campaign for women, based on the idea of everyday athlete. Focusing on the fact that women want to compete and have the same performance benefits that everyone wants, but also have a shoe that is stylish enough that she can wear straight
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.
The low profit margin that Under Armor is showing is due to many reasons. Under Armor spends more money on advertising and endorsements for its products. Also, Under Armor is expanding its product line into shoes and new technology for its clothing. Nike is already a large company with great brand recognition so it is making a much larger profit. It is no secret that Under Armor has been making money with margins that are low.
Since its inception in 1949, adidas have been a leader in innovation; which is also their main competitive advantage in the market place. Along with innovation, the company differentiates itself in the market place with its strong brand equity, supported by a strong global marketing and advertising program.
Under Armour had several plans for this movement. They wanted to rebrand their clothings name in a way that influenced female athletes according to “Time.com”. The company launched its largest campaign in history. It began with an uplifting video of Misty Copeland, an American ballet dancer (UNDER ARMOUR). This was their most expensive and driven campaign ever launched.
It offers a search option for easy finding of a particular product. It also offers a variety of sub options such as men, women, boys, girls, sports and customize. When viewing Nike’s products, the consumer is given the option to narrow things down even more. You can narrow your search by what type, price range, size and even color. Under Armour’s navigation is very similar but it doesn’t go into as much detail.
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).
Nike was doing so well that Adidas didn’t even began to catch up, they still remained well known but they still were not as popular as Nike at the time. This failure of Adidas happened because of their original positioning strategies, the quality was bad and they missed out on good opportunities, one of those being “passing up a sponsorship with Michael Jordan, he ended up signing with “Nike”. One thing that Nicholas mentions in this article, is about how they wanted to use ideas from the original maker of Adidas, “Adi Dassler’s” they needed to use his ideas and passion to help the company. His ideas were to keep the athletes happy by giving the them what they wanted. This is how they began their success that is still used as a strategy today. Adidas focuses more on the quality of the shoe rather than the color and look. Adidas designed their very first successful brand “Originals” which today is a 2.8 billion business, and the shoes still remain popular today, there has been 60 million pairs sold (Nicholas). With that being said Adidas still did not have good tactics, they started to drop sales and they needed something to help them rise back up to the charts. Adidas stayed pretty well off but never out beat Nike, they were always rivals, you could see some teams wearing Adidas and some wearing Nike. Adidas