Nike Under Armour

Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.

Competitors in the industry can wreak havoc on the bottom line for a company. With rivals, a price competition usually ensues, which benefits the customers but hurts the competing businesses that share a common strategy. In reviewing rival sellers, many competitors exist within the sports apparel and footwear industry, but most of them are unable to compete with the industry giants, Nike and Adidas. They are well seated in the industry and their sales reveal this ultimate strength, however, Under Armour is putting pressure on these mammoths. In 2015, global sales of sports clothing and footwear equated to $250 billion, of which Nike grabbed $30.6 billion, Adidas held in its grasp $18.8 billion and Under Armour had a much smaller piece of the pie, at $3.9 billion globally. In reviewing these numbers, it looks like Under Armour is really subpar to the industry giants, but this is not exactly the case. Under Armour in the past couple of

Nike; one of the most well known companies across the globe today is most known for being the world’s #1 shoemaker. They design and sell shoes for a variety of sports including baseball, golf, tennis and football. Nike also sells dress and casual shoes as well as athletic apparel and equipment for almost every sport imaginable. In addition Nike also operates NIKETOWN shoe and sportswear stores, factory outlets along with Nike women shops. One of Nike’s biggest competitors on the rise is Under Armour, Inc. Under Armour; the primary maker of performance athletic underwear and apparel has risen to the top with main competitor Nike. The company has also begun to become a factor in the footwear market as

Today Nike Inc is the largest manufacturer of sports footwear, apparel and equipment with worldwide revenue in excess of $25 billion in 2012 under various labels including Nike, Nike Golf, Converse and Hurley. Seventy percent of the company’s value is derived from footwear and apparel sold under the main brand Nike with Nike footwear commanding a market share

The Rivalry among competing sellers of sporting goods such as Under Armour, Nike, and Adidas-Reebok is strong and likely to intensify. The rivalry among sporting good sellers of energy will keep growing and will become stronger in coming years. Under Armour. Nike, and Adidas-Reebok have similar or competing product offerings and that is why competition among them is so high. If these companies want to stay in business they need to come up with different strategies that will set them apart from the opposition. Competition is intense and revolves around performance,

Other major companies in direct competition (filling the same need, with the same products) include brands which have a focus on athletic apparel such as Athletica (a subsidiary of GAP with a focus on sports apparel), Under Armour (a supplier of sportswear and casual apparel), Nike (a retailing giant focused on footwear, apparel, equipment, accessories

NIKE, Inc. designs, develops, markets and sells footwear, apparel, and equipment, accessories and services. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. It focuses on NIKE Brand and Brand Jordan product offerings in seven key categories: running, basketball, football, men's training, women's training, NIKE sportswear, and action sports. It also markets product designed for kids, as well as for other athletic and recreational uses such as baseball, cricket, golf, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling.

The biggest competitors for Adidas is Nike. Nike is the worlds-leading brand in athletic footwear and holds 16% of the market share in the industry (Hitesh, 2016). Nike’s scope of operations spans through America, Europe, the Middle East, Africa, and Asia Pacific. They have wide product lines with strong marketing and strong innovation. Nike has in the past come under scrutiny about how their products are made in other countries. They have had acquisitions of using sweatshops to produce their products, which has slightly affected their brand image (Bells et al, and UK

The second threat is the threat of rivalry, which is the intensity of competition among a firm’s direct competitors, is high for this industry. The main factor of the competitiveness of the industry is due to the fact that industry rivals compete aggressively against one another for vital market share. The athletic shoe industry is very old and companies must focus on market share rather than concentrating on market growth. The athletic footwear market is expected to grow at a continual annual growth rate of 1.8% from 2011 to 2018 to reach 84.4 billion by 2018 (PRWeb). Non-athletic footwear is the largest market segment and is expected to grow faster than the athletic footwear sector. Various fashion trends in the market, such as demand for innovative designs and styles and celebrity endorsement, is driving the non-athletic footwear market (PRWeb). This new trend in the footwear industry makes the way companies compete vary vastly from company to company. Innovative companies such as Nike strive for product differentiation as well as massive marketing strategies, but other brands such as Sketchers attempt to capture the low budget appeal. 70% of the market share is made up of the top five players which include Nike, Adidas, Reebok, Puma and New Balance (PRWeb). Other key companies are

In 2005, Adidas the renowned footwear company from Germany was in a raging war with it’s U.S competitor Nike over market share in the field of football footwear and accessories. In the war over market share Adidas acquired Reebok the prominent company in basketball footwear to further gain a share in the U.S. Nike has also gained a lot of grounds in the field of football footwear by it’s aggressive marketing and sponsoring strategy that included the Brazilian national team and other prominent football clubs like Manchester United among many others. Nike strategy paid off and in 2003 Nike edged over Adidas for the first time ever in the European football market with a 34 percent market share against a 30 percent for Adidas.

Adidas AG sells sports shoes, apparel, and equipment in 170 different countries. There focus lies in football, soccer, basketball, running, training gear, golf, and apparel. This is a two billion dollar industry and with Adidas being a main cog. They also specialize in lifestyle goods including SLVR and Y-3 fashion brands. They have trademarked their three-striped logo that has become a global symbol of sporting excellence. They are the #2 sporting goods manufacturer behind only NIKE. Adidas’ main market is the footwear manufacturing industry. Research and development is what gives Adidas a competitive advantage. They focus many

As shown in Figure 2 of the Appendix, a Porter Five Force Analysis makes it clear that the overall rivalry within the athletic apparel industry is medium to high. Because Nike and Adidas already have a substantial amount of capital resources and other assets, Under Armour struggles against them to gain market share. 8Also, private labels of retailers and newer sports apparel companies could potentially pose a threat to Under Armour, but mostly due to the fact that Under Armour does not hold any fabric or process patents. This makes it extremely easy for any competitor to duplicate a product or process with no consequence. However, the threat of new entrants is not too troublesome within the industry because of the great capital cost required for branding, advertising, and meeting product demand. Furthermore, the sports apparel industry is in the maturity phase of the industry life cycle. This means that each company included in the oligopoly must

From the early day, Nike has learnt the consumers’ need by listening to the need of athletes, sharing their true passion for running. In doing so, Nike has created a reputation as a provider of high quality running shoes designed especially for athlete. Also, high-tech image has always been associated with Nike products

providing
a
variety
of
high
quality
products
to
consumers
interested
in
sports.
It
is
 currently
the
number
two
brand
in
the
sporting
goods
industry,
trailing
its
main
 competitor
Nike.
Adidas
has
a
strong
focus
on
both
performance
and
style,
as
opposed
to
 Nike’s
more
pure
performance
emphasis.
Adidas
is
currently
surviving
in
its
market
but
 has
many
barriers
holding
it
back
from
becoming
a
more
dominant
and
thriving
company.
 
 Right
now,
adidas
is
facing
an
array
of
opportunities
that
it
can
choose
to
capitalize

Nike, Inc. is a major publicly traded sportswear and equipment supplier in the United States. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of US$18.6 billion in its fiscal year 2008. (Iouboutin, n.d.) Nike has 31% of the total athletic footwear market share globally according to the Athletic Footwear – Global Market Shares figure (appendix 2). Nike has wide range of products and each product aims to different segmentation of the market. For example, the Jordan Series of Nike is mainly designed for men who have higher income level and interested in basketball.