Under Armour Is Exposed At The Golf Equipment Industry Essay

1165 Words Dec 19th, 2016 5 Pages
Under Armour is exposed to numerous risks entering the golf equipment industry. Despite, the organization already having a footprint in the sport as they are in the apparel market, they are still susceptible to the risks that plagued Nike. Under Armour can be exposed to manufacturing, assembling, distribution, and marketing deficiencies that without proper planning could become detrimental to their product launch. “The biggest problem we’ve encountered is lack of preparation: Companies are so focused on designing and manufacturing new products that they postpone the hard work of getting ready to market them until too late in the game” (Schneider & Hall, 2011). It is critical that when Under Armour is read to launch into the golf equipment industry that the equipment is top notch, there is a plan for marketing, and Under Armour is ready to follow through on their claims and delivery of golf equipment.
Potential Risks:
The first exposure is presented to Under Armour is their relationship with the overseas manufacturing partner. Shortages of raw materials, delays, and inefficiencies in the manufacturing process can disrupt the product launch. If Under Armour is going to make claims to deliver top notch equipment in a period of time, they have to rely on overseas communication, manufacturing and delivery to do so. There is a concern that the increases in the manufacturing costs can start reducing profit-margins. As seen over the past election debates, government regulations…

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