Executive Summary
Under Amour is a company started by the former University of Maryland football player Kevin Plank who came up with a design which enable the sweat to "wicked away" during high level physical activity. This company has a original name called KP sports and changed in 2005 when under amour went public. Under amour 's product designed to keep athletes cool dry and light throughout the high intensity game, practice or workout. The founder has really successful developing new and innovative gears to help stay ahead of its competitors.
Core Strategy
The company's strategy of Under Armour is an active game plan in order to gain sales and market shares by provide more performance features, higher quality products wider product selections …show more content…
Five Forces Model:
Competitive rivalry within industry(High):The rivalry among established companies is intense. The sports apparel industry is very competitive and the demand is high. The switch cost is really low ,therefore it lead to the intense competition. Under armour has two large rivals which are Nike and Adidas,these two dominated a large portion of sports market. So the competitive rivalry within industry is high.
Threat of new entrants(High):Numerous competitors would be compelled to enter into the global market because the low barriers for entering the industry caused by the common product technology and ease of brand switching .For the new entrants, they may need to spend tons of money on marketing and advertising to become enough competitive with the key players of the market such as Reebok ,Nike, Puma and …show more content…
High quality suppliers have more leverage.
Internal Analysis:
SWOT analysis
Strength
Innvation:The company's goal for the innovative performance and training based apparels and gears was designed to keep athletics dry, cool and light during the games.Also,the high quality of the products made the company to experience a significant growth in the industry.
Good marketing and promotion: They took every opportunity to show off their brand on TV, internet and social medias. They like to sponsor every athletes from individual to the entire team. From young age school sports program to the nationally sport competitiion.This helped them to get more customer awareness and the brand visibility is increasing.
Financial Stability: Positive revenues growth in past 5 years with annual growth rate 19.3% and the net revenue of 2011 is almost 3 times higher than 2006.
Weakness
Under amour considered themselves as a male target brand so they have a limited product line.Also,their sales rely heavily on wholesale distribution like Dicks and Sports Authority and the global brand awareness is low because 90% of their total sales is in U.S.
Threats and
Under Amour is a company started by the former University of Maryland football player Kevin Plank who came up with a design which enable the sweat to "wicked away" during high level physical activity. This company has a original name called KP sports and changed in 2005 when under amour went public. Under amour 's product designed to keep athletes cool dry and light throughout the high intensity game, practice or workout. The founder has really successful developing new and innovative gears to help stay ahead of its competitors.
Core Strategy
The company's strategy of Under Armour is an active game plan in order to gain sales and market shares by provide more performance features, higher quality products wider product selections …show more content…
Five Forces Model:
Competitive rivalry within industry(High):The rivalry among established companies is intense. The sports apparel industry is very competitive and the demand is high. The switch cost is really low ,therefore it lead to the intense competition. Under armour has two large rivals which are Nike and Adidas,these two dominated a large portion of sports market. So the competitive rivalry within industry is high.
Threat of new entrants(High):Numerous competitors would be compelled to enter into the global market because the low barriers for entering the industry caused by the common product technology and ease of brand switching .For the new entrants, they may need to spend tons of money on marketing and advertising to become enough competitive with the key players of the market such as Reebok ,Nike, Puma and …show more content…
High quality suppliers have more leverage.
Internal Analysis:
SWOT analysis
Strength
Innvation:The company's goal for the innovative performance and training based apparels and gears was designed to keep athletics dry, cool and light during the games.Also,the high quality of the products made the company to experience a significant growth in the industry.
Good marketing and promotion: They took every opportunity to show off their brand on TV, internet and social medias. They like to sponsor every athletes from individual to the entire team. From young age school sports program to the nationally sport competitiion.This helped them to get more customer awareness and the brand visibility is increasing.
Financial Stability: Positive revenues growth in past 5 years with annual growth rate 19.3% and the net revenue of 2011 is almost 3 times higher than 2006.
Weakness
Under amour considered themselves as a male target brand so they have a limited product line.Also,their sales rely heavily on wholesale distribution like Dicks and Sports Authority and the global brand awareness is low because 90% of their total sales is in U.S.
Threats and