The athletic industry is a demanding market where brands battle for consumer’s attention and try to hold on to them through brand loyalty. To compete with one another, companies have to come out with new trends regularly. Nike is a leading competitor in the market and has been for the last fifty years. However, Under Armour, an up and coming competitor is challenging Nike through new styles and lower prices. These two companies look fairly similar; however, Under Armour’s strategy is different and it should be putting Nike on edge. Nike and Under Armour are both athletic apparel companies. Both companies manufacture sportswear for men, women, and children. These companies produce items such as t-shirts, sweatshirts, shorts, pants, and shoes. Athletic gear has gained popularity and now is not worn just for work outs. The reason for the popularity is due to the comfort athletic gear provides. Even everyday retail stores have picked up on the trend and are beginning to sell activewear. …show more content…
Other competitors include Reebok, Asics, Puma, Adidas, and FILA. Under Armour’s biggest competitor, Nike, whose gross revenues of $25.3 billion vastly overshadow Under Armour’s $1.8 billion. One positive trend for Under Armour from a competitive standpoint is the fact that their competitors may have reached their maximum potential. Nike’s 12-Month Revenue Growth was 4.9% , while Under Armour had a rate of 24.6% (Colbert, 2013). Nike is booming in production but Under Armour is on the rise and will eventually take over the athletic
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
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
At some point in one’s life, he or she gets introduced to sports which have become a staple in society around the world. For example, most countries have a national team for different sports such as soccer, volleyball, and baseball. There are many companies like Addis, Reebok, and Asics that produce sportswear for every sport imaginable. Two of the biggest sportswear companies are Nike and Under Armour. Athletes and non-athletes all over the world use Nike and Under Armour products every day.
Overall, Nike’s inventory turnover is greater than Under Armor by .86%. This leads us to believe Nike is selling more inventory than Under Armor and making a greater profit. Nike’s annual sale’s are 8.4 times greater than Under Armour’s, which leads them to have an extra advantage because they have more money to spend on marketing, and advertising (Sparks). Not only that, the current ratio of Nike is 2.52% and Under Armour is 3.67%. Even though Under Armour has a higher ratio, Nike is also competently larger in size than Under Armour so has more current liabilities, but Nike, for its size is still has a comparable current ratio.
Nike, Adidas and Under Armour are the largest brands in the athletic/sportswear monopolistic market. As of 2015, Nike’s revenue was $30.1 billion, the revenue of Adidas was $4.57 billion, while Under Armour’s revenue was $3.96 billion. Though all of the companies are large, Nike has a little more than 60% of the brand share dollars as compared to Adidas’ 11% and Under Armour’s 7% (Figure 1). Nike has some major strategies that
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
In the meantime Under Armour has been the pioneer in the latest technology in athletics gear; the second step would be how to transfer the technology into fashionable designs that could satisfy female’s needs and taste. By centering on direct market segment, UA can be the leader and innovator of the female’s market with most fashionable and technologically athletics gear products.
While Under Armour performs well in quality, product performance, brand image, and innovation, they perform below their rivals in most of the other areas. Under Armour has a net competitive disadvantage in its competition with Nike and Adidas. Recommendations: The issues that Kevin Plank and Under Armour management need to address are global expansion, supply chain management, and marketing.
The competitors of Under Armour include Nike, Adidas, Sport Hill and Columbia Sportswear. These companies will use many strategic to attract customer in order to purchase their products. For example, companies can spend out more money in advertising and quality of products to increase their competition advantages in the sportswear market. Therefore, Under Armour need spend more cost to hire the skilled workers and purchase more machines in the production in order to compete with other competitors. The effect of high intensity of rivalry among competitors lead to Under Armour cannot maximizing their optimal profit and increase the burden of
Under Armour’s Revenues for 2016 reached $4,825.30 million, up 21.7% YOY, which came in above Nike’s 6.1% YOY revenue growth to $34,450.00 million.
Under Armour is a company that always strives to do better. They are currently trying to expand globally. While Under Armour has higher quality than most of its competitors, the cost of their merchandise is still a lot less than competitors. There are many threats to a highly-competitive sports clothing company such as Under Armor. Like many companies in the retail industry they are faced with the increasing costs of their materials and shipping expenses. Under Armour is trying to connect to the middle class more, by trying to make their merchandise as affordable as possible. Fortunately, for Under Armour, customers are focusing more on the quality of the merchandise, not the price. This company has many
Under Armour is one of the top athletic wear companies in the world next to Nike. The company was created by a University of Maryland football
The sports apparel industry has been very competitive and the demand for their products are high. When Under Armour started selling heat gear and cold gear, they were the only company doing that. However once the bigger companies such as Nike and The Adidas Group realized how much money it was too be made with this product they too began to produce a similar product. With these two larger companies infringing on the profits of UA they decided to branch out further into the sports apparel world by selling shoes and different accessories. Once UA crossed over with these products the competition amongst
From its creation, Nike has been consistent towards striving to be the best sports brand in the world. From its sports technology innovations and quality materials, to its exclusivity and customer loyalty, Nike has ruled over its competitors. Nike holds to its mission statement and considers anyone that is able to move to be an athlete, and it strives to provide the best equipment and apparel for its athletes. It is through this determination to be the best that Nike maintains its advantage over other industry companies such as Puma, New Balance, Asics, and Reebok. Nike’s strongest competitor is Adidas, who also has a determination to provide the best athletic apparel
Under Armour is a very popular and well-known brand throughout the world, there are many reasons why this is the case and why they are very successful as a company. Under Armour creates value for their customers in many ways, one of these ways is with their basketball shoes. Customers wouldn't want to buy shoes if they didn't think it would be durable and a good shoe. Customers can trust Under Armour’s basketball shoe because it is a shoe that somebody in the NBA wears. This shows that someone is willing to trust their million-dollar contract with their shoes to help them get their well-earned money, and that shows to confidence in Under Armour. Under Armour also gives many different options that the customer can choose from. They offer different technologies, materials, and articles of clothing. There are many different technologies they have, but I will only list a few. One of these technologies is cool switch, this helps athletes perform longer because the clothing will keep them cool and save them from sweating as much which helps save energy. Also, they offer many different materials in case a customer is allergic to a certain type of material there is always another so that they don't lose a customer. They also offer all different types of clothing so that whatever you need they'll have. Based on this research it proves that Under Armour has done so much to get where they are and be as successful as they are.