Under Armour Case Study

Under Amour experienced   stiff domestic competition from Adidas and Nike Corporation.  The competitive domestic rivalry was the major issue of Under Amour when the case was written.  The competition was mainly subjected by two major and large rivals in the industry namely Nike and Adidas (Subramanian, Ram, and Gopalakrishna, 4). The two rivals owned   large market share portions thus resulting in high competition in the market.  Nike   subjected the corporation to more rivalry because it held a market segment of more than 7% followed by Adidas which holds a portion of 5.4% of the general share in the market (Griffin, 274).  Under Armour  lacked  shirts cooling patent  which  provided the corporation with  much pressure  based  on the easiness’  of  the capability  to recreate  products that assisted in developing the name of the competitors by the competitors.  In addition, when the company was able to establish  a stable market  for shirts  other corporations began  to  invest in the market  too through taking advantage of the created chances  of gaining more consumers who had not  yet been  attained  by Under Amour. This issues affected the company’s performance as its ability to gain consumers was reduced thus resulting in lowered sales (Griffin, 275). If the issue of domestic competition is not addressed with the use of strategic approaches the company may lose financial ability to sustain its operations.

This is because the competitors and the corporation hold many similarities in that they are all involved in the production of, equipment, apparel, sports footwear as well as   sporting accessories. This means that the corporation may be thrown out of the market as   consumers are more likely to be loyalty to   established companies.  With the changing trends, the issue of domestic competition can best be solved suing effective marketing approaches. Consumer segment and value is a major determining factor in a corporation’s success and thus losing consumer relation for the corporation may result in a loss of its domestic market segment (Griffin, 278).

 

Work Cited

Griffin, Ricky W. Management. Boston: Cengage Learning, 2017. Print.

Subramanian, Ram and Gopalakrishna, pradeep. Under amour. Society for case research and authors, 2012. Pdf.