Under Armour Essay Example | Topics and Well Written Essays - 500 words

Under Armour - Essay Example The fact that Under Armour has fewer retail stores it means that it has fewer powerful buyers who can often dictate terms. In terms of competitive rivalry, the two companies do not pose a serious threat since Under Armour itself offers unique products. However, all the competitors have allocated a sizeable budget on research, meaning that they are likely to offer undifferentiated products and services that may reduce attractiveness of Under Armour. Under Armour doesn’t pose the threat of new entry since the other two corporations have the advantage of the economies of scale, and considering their budgetary allocations on marketing, Under Armour is less likely to capitalize on the threat of substitution. Under Armour has a major strength of manufacturing the most unique brand in the market. However, the weakness of fewer retail stores and the threat posed by other corporations like Nike and Adidas Group gives it a lesser advantage in the market. Broadening the company’s product offering to all athletes and increasing its sale, designing kits that can be worn under different weather conditions, marketing and product promotion (Thomson, 2012). All the three companies are engaged in sponsorships and endorsements for product promotion and marketing. They have also allocated sizeable amounts of resources on research and development of new products. On one hand, Under Armour has the advantage of its unique products in the market, and on the other hand, it has a disadvantage of unfavorable competition in terms of capital against the other two. He needs to address the issue of the growing number of individual items produced, uncertainties surrounding consumer demand that affects accurate projections of items to order (Thomson, 2012), and how to acquire the lion’s share of the market. Carrying out proper survey in