Answer the following questions for the Under Armour in details: (Note: Do not at

Question

Answer the following questions for the Under Armour in details:

(Note: Do not attempt to solve if you cannot answer all!!!!!)

1) How attractive is the market or industry and its submarkets? What are the forces reducing profitability in the market, entry and exit barriers, growth projections, cost structures, and profitability prospects?

2) What are the alternative distribution channels and their relative strengths?

3) What industry trends and emerging submarkets are significant to strategy?

4) What are current and future key success factors?

Explanation / Answer

Under armour

1.Under armour a company that manufactures accessories and clothing related to sports wear. Recently the population has become more health conscious and fitness conscious. Hence the demand for products like sports gear, shoes, shirts ,backpack, etc is increasing. The forces that can affect the profitability of Under armour are its competitors who are equally striving to meet the consumer demand with better quality products. There are lot of entry and exit barriers as the manufacturing facilities require factories which is the costly setup and may take time to sell the equipment in case of exit. The growth projection is significantly higher as there is increase in population who are fitness conscious. The cost is associated with retail outlet, manufacturing process, operation, and Logistic facilities. All the above factors make the company profitable deal.

2. Alternative distribution channel is e-commerce and amazon. Its relative strength is that customer convenience to order the product from home and easy payment options.

3. The emerging trend is that the rising population is participating in marathon and other group fitness activities which encourages and motivate the people around to pursue fitness as a goal which in turn generates more demand for fitness apparels.

4. The current and future key success factors are promoting of more fitness activities through cyclothon, Marathon and trilathon. Promoting benefits of fitness related activities, focusing on effective marketing strategies and improving visibility on all sports events. Providing better quality product so that the consumer Returns to purchase under armour products.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.