What Is Under Armour Competitive Forces

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The combined athletic-wear and sneaker industry is a highly competitive market. Currently, there is a low threat from new entrants due to the high number of entry barriers created by the traditionally dominant companies such as Nike and Adidas, Under Armours main rivals. Under Armour’s entry in 1996 is the most recent American brand to gain significant market share yet regardless, they still remain significantly behind their competitors in the global market (Strider).
Buyer Power In the athletic apparel and sneaker industry, there are several available substitutes creating a middle-tired buying power. In addition, with the recent surge in online shopping; supplying affordable products that can be purchased online has become an emphasis. Although the industry has several players, Under Armours ability to supply premium differentiating products helps maintain its competitiveness against lower-tier brands. Studies have shown that many customers purchase brands due to brand recognition and association (Strider); this in turn has lead companies such as Nike, Adidas and Under Armour to invest heavily in athletic sponsorships and endorsements. Stephen Curry and Tom Brady are among athletes whom Under Armour has signed to a multi-million dollar endorsements (Under Armour Roster).
Threat of Substitution There is a high threat of substitute products. Over the past years, the demand for athletic apparel has significantly risen (Strider). Under Armour has positioned themselves in an

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