The Threat Of Substitute Products Essay

The Threat Of Substitute Products Essay

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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 Armour uses to out-compete its competitors includes: Innovative performance based apparels and gears, the goal is to have a brand that lives up to its promises. The company was designed to have a brand that has a quality product that has multiple benefits for sports players and to keep athletes dry, cool and light during the game. Having a product that does not have any stipulations or hidden requirements behind it, like when a shirt is purchased it does not need anything to bring out the qualities that are being promoted achieves this. Good marketing and promotion are where Under Armour took every opportunity they could to show off their brand. The company has an in-house marketing team that designs and produces advertising and marketing campaigns along with promoting growth and increasing sales. They have invested a lot in research and development, the center point of its operations. This investment will develop new and superior products that will attract more customers.
This analysi...

... middle of paper ... and development, which is the most important factor for continued growth, expand their products into international markets, get patents on their products, focus on differentiation strategies, develop new product line to appeal to more consumer and diversify product to cater none athletes. To stay competitive in the long run, UA should become a present force in the international market. UA depends on North America for 90% of its sales, so going global will generate significant revenue to help them compete with their rivals. UA needs to offer more street clothing, more individual customization and more products targeted towards the female market. Based upon all of this analysis, I know that the implementation of these recommendations will have a positive impact for UA to maintain a competitive advantage that will provide growth and success for the company.

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