It is said that the internet has reduced barriers, making market entry much easier for new industries to enter but with UA entering the market in 1996, this obviously didn’t play a factor in their immediate success going against an enormous, well recognized company such as Nike. A substantial amount of capital resources is also mandatory for creating a new brand with large investments needed for marketing and obtaining real estate for factories. With the worldwide demand for performance sports gear expected to continue and grow, it is presumed that the threat of substitute products will have little or no effect on UA. However, the issue of improved quality counterfeit products being produced is an area to watch as it has the potential to weaken company’s sales. Under Armour is said to have various suppliers in over 14 countries, produced by 27 manufacturers, which certainly limits the bargaining power of the …show more content…
Promotion is the most direct connection among a company and its customers, making it vital to precisely represent a product’s benefits, guarantees, value, obtainability and disadvantages. One example is a toy that was made in China called “Aqua Dots”, it contained a chemical that once metabolized, converted into the toxic “date rape” drug GHB (gamma hydroxy butyrate). This caused many young children to become violently ill after accidentally ingesting them resulting in vomiting, seizures, apnea, and in some cases a coma. Ironically, this product was heavily advertised and was named “Toy of the Year” in Australia before evidence of this problem surfaced. The extreme negligence this company displayed by allowing Aqua Dots to hit the shelves is inexcusable and is a sure sign that ethical responsibilities are often overlooked. Companies must be ethically and socially responsible when advertising food to children. Adults are presumably able to make liable decisions regarding what they purchase, consume, or give to their children. In this case, a child sees an advertisement for fast food combined with a free toy and automatically wants to eat at that restaurant because of the free toy. This type of promotion encourages unhealthy eating habits for a child who clearly isn’t aware of the negative effects this type of food can have on one’s body, future, or