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The multi-segment global market for sports apparel and athletic footwear is currently controlled by roughly twenty-five brand-name companies, fighting over a $75 billion market as of 2012. While the presence of this many established companies in the market will make things very difficult for any new entrants to establish themselves, any portion of the $75 billion market will help pave the way for a new entrant to build a sustainable business strategy over time. As stated above, there are currently more than twenty-five brand-name competitors in the athletic footwear and sports apparel market. Exhibit 4 in the case study divides these companies into six more specialized segments whose products vary in price, performance, and purpose. Due to the large amount of competitors in every segment of the markets, the threat of substitutes to Under Armour’s product lines is substantial. Bargaining power of buyers: Under Armour selected a very strong …show more content…
Much of Under Armour’s initiatives are directed at broadening the company’s product offerings and marketing these new products to both domestic and international markets. The company is also focused on continuing to build its brand and gain market share from its top competitors, Nike and The Adidas Group. So far, the company has developed three types of apparel (HeatGear, ColdGear, and AllSeasonGear), a footwear line, and countless other accessories for athletes and average users alike.
In our team’s opinion, Under Armour’s competitive strategy is similar to the focused differentiation strategy discussed in our class’s book. As discussed numerous times in the article, Under Armour has been focusing on expanding its product selection to cater to more consumers and markets. However, even though it is expanding its product lines, Under Armour is still focused on providing for the clothing needs of athletes.
The multi-segment global market for sports apparel and athletic footwear is currently controlled by roughly twenty-five brand-name companies, fighting over a $75 billion market as of 2012. While the presence of this many established companies in the market will make things very difficult for any new entrants to establish themselves, any portion of the $75 billion market will help pave the way for a new entrant to build a sustainable business strategy over time. As stated above, there are currently more than twenty-five brand-name competitors in the athletic footwear and sports apparel market. Exhibit 4 in the case study divides these companies into six more specialized segments whose products vary in price, performance, and purpose. Due to the large amount of competitors in every segment of the markets, the threat of substitutes to Under Armour’s product lines is substantial. Bargaining power of buyers: Under Armour selected a very strong …show more content…
Much of Under Armour’s initiatives are directed at broadening the company’s product offerings and marketing these new products to both domestic and international markets. The company is also focused on continuing to build its brand and gain market share from its top competitors, Nike and The Adidas Group. So far, the company has developed three types of apparel (HeatGear, ColdGear, and AllSeasonGear), a footwear line, and countless other accessories for athletes and average users alike.
In our team’s opinion, Under Armour’s competitive strategy is similar to the focused differentiation strategy discussed in our class’s book. As discussed numerous times in the article, Under Armour has been focusing on expanding its product selection to cater to more consumers and markets. However, even though it is expanding its product lines, Under Armour is still focused on providing for the clothing needs of athletes.