The Multi Segment Global Market For Sports Apparel And Athletic Footwear

1019 Words Nov 15th, 2016 5 Pages
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 marketing strategy centered around the goal of having their target market see the product being worn on the field by athletes. The company accomplished this by sponsoring large events and sports teams, athlete endorsements, and being the official outfitter of over 100 Division I men’s and women’s athletic teams. By building up their company’s image, Under Armour fought to differentiate themselves from the steep competition of established rivals such as Nike or Adidas. However, the large number of industry rivals still allows…

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