CS for Under Armour

Better Essays
Question 1
I’m going to identify why so difficult for new firm to enter the sportswear industry based on evaluating the following barriers. Those barriers are capital requirements, economies of scale, product differentiation, access to channels of supply & distribution, legal and regulatory barriers, expected retaliation.

First of all, I’m going to analyze legal and regulatory barrier. Sportswear industry is a free market, investor are free to enter the market. The international community is not particularly regulatory to enter the market, therefore the legal and regulatory barriers is low.

Secondly, the industries are freely access, this makes the industries have many new competitors, and therefore existed companies are
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Support activities included firm infrastructure, human resource management, technology development and procurement. And the following are their competencies and identify the core competence.

Under Armour did well in their distribution since they have great an effective and efficiency system and well international expansion plan. Under Armour have a SAP system to manage a more diverse inventory and to ship directly to distributor, this make the distribution work efficiently and effectively, it save cost of distribution. Under Armour make a good distribution network, they sell product over 13 countries, through in-house distribution, partnership, third-party distributor and online store. This is because of a well international expansion plan, Good distribution network make more consumers can come into contact with their product and more convenient to buy their product, it directly increases their sales. Armour oversea business are done through partnership and third-party distributor, therefore Under Armour need not to open its’ store, this act can save cost of open new store. Therefore, Under Armour performance has been improved.

Also, Marketing help Under Armour generate revenue. Under Armour has a great marketing team, they hired retried baseball player to be their official uniform representative since he was partnered with Nike, this act seems like demonstrations to Nike, and they capture much of youth sports industry by sponsoring
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