The Ethics Of Sports Apparel

1798 WordsMay 9, 20158 Pages
Founded in 1996 by Kevin Plank, a former University of Maryland football player, Under Armour is an innovative company in the sports apparel industry. Under Armour’s founder Kevin Plank came up with a ground-breaking idea that changed the way that sports apparel is looked at today. Plank wanted to originate an apparel that would help athletes like him keep cool and dry when they engaged in vigorous activities during high temperature condition, so he created sports apparel using synthetic materials as an alternative to natural fibers such as cotton. Being a former athlete allowed Plank to understand the discomfort of wearing a sweat cotton fiber shirt during sport practice, or work-out, and he worked relentlessly to develop a shirt that…show more content…
Provide a five-forces analysis to support your answer. I believe that bargaining power of customers and threat of new entrants are the three main key forces that have the potential to impact negatively Under Armour’s growth stability. Under Armour relies mainly on Dick’s Sporting Goods and The Sports Authority for more than 20% of its revenues and problems at these retailers could affect its growth pace. While Under Armour faces rigid competition from Adidas and Nike, they could also see the competition go up from other companies as it does not hold process or fabric patents. Furthermore, Under Armour’s hard core competitors, Nike and Adidas Group, are continuously coming up with new ideas in order to fight for that number one spot and to earn the customers’ loyalty to their brand. Five Porter Analysis Competitive Rivalry within the Industry- Nike and Adidas pose threat and Under Armour does not hold patents. Bargaining power of suppliers- Diverse supplier base limits their bargaining power. Bargaining Power of Customers- Wholesale customers such as Dick’s Sporting Goods and The Sports Authority hold leverage. Threat Of New Entrants – Existing sports apparel companies could enter the performance apparel market. Threat of substitute products- Demand for Under Armour’s products is expected to continue. 2) Does Under Armour have any core competencies and, if so, what are they? Under Armour core competencies are to keep their
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