Strategic Analysis Of Under Armour's Value Chain

The threat of substitute products is high, which can limit the price charged for the product. Technology has aided to increase the threat of substitute products because more consumers are using the Internet to research prices, find sales and read reviews. If Under Armour can obtain a patent on all of its products, this will stop Nike and Adidas from completely copying their products. The bargaining power of buyers is high mainly because customers that focus on price have a lot of power. Buyers can force prices to go down or demand higher quality services or products, which may increase operating costs. There are no switching costs, which means customers have several options on which products to choose.

Some of the key factors that Under

The value chain shows the various steps Under Armour takes to do business and proceed in the environment. The value chain design looks at the raw material network that consists of Natural fibers (cotton, wool, silk, etc.) and Synthetic fibers (oil, natural gas). The marketing stage focuses on production networks that talk about apparel manufacturers. Securing clients, concentrate more on the export networks, which is all about retail outlets from brand named apparel companies to overseas buying offices to trading firms. Distributing turn to look at the marketing networks which pays more attention to retail outlets such as department stores, specialty stores, discount chains, strong Corporate Environment Code of Conduct. Value chain statement of Under Armour: Respect the Universal Guarantee of Performance (UGOP). Every product we build must be tested, and every product must make athletes better, that’s our guarantee. The role of the value chain of Under Armour goes hand in hand with its user experience, background support and relevant distinction, familiarity and visibility of the company. Under Armour’s mission statement includes the following: To make all athletes better, through passion, design and relentless pursuit of innovation. Under Armour is designed for both athletes and the general consumer, their loyalty base is not large enough to compete with substitute products. The biggest issue facing the company is the lack of patent on their designs, meaning that any of their rivals could develop a similar product without fear of retaliation. Although UA has a recognizable design, it does not compare to Adidas and Nike, who have been in business longer and have more experience of how to market to customers, and have a much higher market share than UA as well as years of financial