The Impact Of Marketing On The Athletic Apparel Market

1233 WordsMar 29, 20165 Pages
ted product. Threat of New Entrants is low since the growth rate is expanding in the athletic apparel market and existing industry members are actively reaching into product segments or geographic areas where they do not have a strong presence. There is an entry barriers for new entrants in building a retail distribution, a large reliable supply chain, and securing contracts for endorsements and promotions. The other companies are established and credible brands that work on global scales. A smaller company would most likely not gain enough traction in this already competitive market to stay relevant even if they selected niche markets since the established companies cater to such a wide demographic of customers. (David 144). Other clothing brands have the ability to start manufacturing athletic apparel to take away market share and diversify their portfolio. Thus, existing apparel companies could enter the performance apparel market if they decide to invest capital for advertising and building product demand. Under Armour has weak patent protection over its product; hence, there is a threat of different unexpected entrants who want to reiterate on their proven formula. Overall, the threat is less imperative to their continued success since other issues are more pertinent and likely. Industry Rivalry is moderate since competitive pressures are fierce Under Armour has considerably smaller resources pools to leverage in gaining market share. Under Armour is facing giant
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