under armour challenging nike

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Under Armour— Challenging Nike in Sports Apparel

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Introduction

Under ArmourChallenging Nike in Sports Apparel

Presented ByMd.Kamrul Hasan Shimul 1120322Md. Nazibul Islam 1120628Uchash Bhattacharjee 1121000Fuad Hasan Rifat 1230754Md.Abdullah Nabil 1321011

Introduction Founded in 1996 by Kevin PlankHeadquarters is located in Baltimore, Maryland.KP sport and then Under Armour in 2005Different gear designedBrand mission

Five ForcesCompetition from rival sellers:The rival among established companies is intenseLow switching costLow level of products

2. Competition from potential new entrants:Existing companies in the sports apparel industry could enter the performance apparel market in the future.

3. Competition from producers of substitute products:Technology has tremendously aided to increase the threat of substitute products.

4. Supplier bargaining power:A diverse supplier base limits bargaining power.

Cont.5. Customer bargaining power:No switching cost and customer have several option on which products to choose.

SWOT AnalysisStrengthRespected Brand NameStrong customer LoyaltyFinancially strongHigh net income in year 2009Positive response from customersSimple, straightforward & memorable messageHigh Quality & High performing product

WeaknessesYoung CompanyVery Limited product line in the beginningLimited online presenceHigh pricesLimited product rangeLoss of the military market

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OpportunitiesFocus on consumer lifestyle improvementsInternational expansionSponsorshipsLarger market share in the female marketGetting into soccer8

ThreatsNegative Impact on the "Green" MarketOther companies in same space (Nike, Adidas, etc)Male dominant focusLack of female focusHigh labour costChange in consumer behaviour9

Under Armour's StrategyHigher quality: Advertisement: Outlines strategies: The product line strategy: sports marketing strategy : Retailer marketing Strategy:

Strategic Layout Of Competition

Ratio Analysis

Value Chain Of Under Armour

Problem Statement:We have figured out 4 problems, Under Armour is facing in Challenging Nike. These are really big challenges for Under Armour. Under Armour has to work on these problems to challenge Nike. They are, High Manufacturing CostWeak R&DSmall International PresenceLess Athlete Endorsement in Advertising

Recommendations:I would recommend Kevin Plank, CEO, Under Armour to focus on few things and work on them. They are,Focus on Technology and Innovation to stay competitiveFocus More on OutsourcingBuild a strong Research and Development.Expand its product line.

Recommendations cont.Increase presence in International Market as a part of Global Business.Choose a worldwide popular sport (Soccer) and produce more for it.Not only Men, Women and Youths but also target Children.Endorse more Athletes as a part of popular way of promotion.Continue Marketing Campaigns.