Under Armour: A Competitive Market

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In today’s market spectrum, Under Armour is considered part of a competitive market. A competitive market is a market with many sellers, selling similar products with free entry and exit. There are natural barriers that can make entry and exit for a company difficult, such as problems in raising capital and situations called economies of scale (Mateer 2016). These natural barriers can cause problems for companies trying to compete against the larger and more experienced companies such as Under Armour, Nike, and Adidas. Competition is what is driving Under Armour in the market. Its two biggest competitors are Nike, and Adidas. Nike was founded in 1964 (O’Reilly 2014), and has a net worth of 15.9 billion, and Adidas was founded in 1949 and has …show more content…

Under Armour has recently increased its number of ads, and sport stars. Sport stars such as Michael Phelps, Stephen Curry, and Misty Copeland have been huge advertisers for the company, which has helped in competing against Nike. In the collegiate world, Nike is the main sponsorship, but Under Armour has six division one schools, and twelve other colleges that it is currently sponsoring (Under Armour). This number is most likely to grow each year as the company is still in the earlier stages of developing. According to Fox Buisness reporter, Thomas Barrabi (Barrabi 2016), Under Armour recently partnered with UCLA and Cal Berkley by offering to pay $280 million in cash over 15 years. These contracts will help Under Armour’s market along the West Coast. USA today compares the companies, Nike and Under Armour in order to aid investors looking into the stock market. Under Armour has a higher growth rate than Nike, most likely because it is a newer company that is still expanding and taking advantage of new opportunities that are presented. Nike has a higher value when compared to Under Armour, simply due to the fact that Nike has been around for over fifty

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