The Threat Of Substitute Products Essay

The Threat Of Substitute Products Essay

Length: 1267 words (3.6 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

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 ...


...search 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.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Business: Threat of New Entrants

- Threat of New Entrants This has a low threat because firms already in the industry have a cost advantage and these companies already have a strong customer base. Economies of Scale • Bigger producers buy more inputs and therefore may get quantity discounts • Boeing is the world's largest aerospace and defense company • Boeing sells more products in multiple industries so they have the ability to produce each unit at a lower cost than a smaller company would • Delta is the 2nd largest passenger airline in the world by available seat miles Product differentiation • Boeing offers many different types of planes for different needs • By scheduling and operating its aircraft efficiently, JetBlue i...   [tags: customer base, airlines, boeing]

Better Essays
994 words (2.8 pages)

Essay about Threat Of New Entrants Of The Aviation Industry

- Threat of New Entrants The aviation industry is very difficult to enter, and the threat of new entrants is low. The first and major threat to entry is the initial capital requirements. The development period is over 5 years, with very large initial investment costs, parts costs, and wages are necessary even before the company earn revenues and sell aircrafts. The economies of scale, when the airline company has a substantial order, there are reduction in cost because of discounts on large orders....   [tags: Airline, Aircraft, Fixed-wing aircraft]

Better Essays
731 words (2.1 pages)

Porters Five Step Analysis of UMUC Haircuts Essay

- UMUC Haircut’s has been a successful organization for almost two decades, yet more recently there have been threats geared towards to the future and success of the business. I am writing this paper to inform Myra(Owner of UMUC Haircut’s) about the impactful forces aimed towards her business, along with a generic strategy to combat any known threats. Finally, I would like to propose which strategic business area needs improvement at UMUC Haircut’s. I plan to propose immediate action towards increasing brand exposure and customer information using an inbound marketing approach....   [tags: business, threat, customers]

Better Essays
858 words (2.5 pages)

Consumer Analysis : What Products And Services The Company Are Providing?

- CONSUMER ANALYSIS WHO. Who are our existing and potential prospect customers. Who really upload items for listing as well as who purchases our products. Who are always interested browsing the website. Simply, who are our markets. WHAT. What products and services the company are providing. Does the products vary from other e-commerce businesses. Is it worth it. What are they presently buying. WHEN. When will the items be delivered. Does the company monitors exact delivery dates of purchasers. When the right time and right reason items will be sold....   [tags: Electronic commerce, Marketing, Online shopping]

Better Essays
1053 words (3 pages)

Potential Entrants Threats : Threat Of New Entrants Essay

- Potential Entrants Threats: Threat of new entrants is relatively low. Provided that Hooker Furniture was incorporated in 1924 and “ranked among the nations top 10 largest publically traded furniture sources based on 2013 shipments to the U.S”, while it is not impossible, it is highly unlikely that a new entrant would be able to compete with an organization as established and resourceful as Hooker 90 years in the business. Bargaining Power of Buyer Opportunities: Strong customer service and relations....   [tags: Customer service, Customer, Technical support]

Better Essays
1190 words (3.4 pages)

The Threat Of A Negative Image Of Wells Fargo & Co. Essay

- Threats to the organization involve the various competitors in the financial services industry as well as key partners in the supply chain. When discussing competitors, an obvious threat will be loss of market share to other institutions. With the negative media, many customers have switched their banking relationships to another financial services provider. Because the products in the financial services industry are generally the same from firm to firm, it is imperative that the service provided sets the organization apart....   [tags: Bank, Financial services, Citigroup]

Better Essays
1230 words (3.5 pages)

Supply Chain Management Essay

- Wal- Mart has been considered one of the most successful companies in dealing with the challenges of supply chain management. They are known for supplying cheap products to a market of individuals primarily interested in saving money. Though some could argue that Wal-Mart’s presence has been to the detriment of local owned and operated stores, this situation has been observable around the country. Taking a holistic view, one may define a supply chain to include all activities required to bring a product to the market (Modi, S....   [tags: Wal-Mart, cheap products, shipping]

Better Essays
869 words (2.5 pages)

Essay on Explainations of Business Analyses and Segmentation

- Explain SWOT Analysis. SWOT Stands for Strengths, Weaknesses, Opportunities’ and Threats of a organization. SWOT analysis determines what may support the firm in every critical ways in which they can achieve its objectives and what difficulties must be taken down to achieve the objectives. SWOT analysis is a basic factor of an organization that evaluates what an organization is capable of and what it is not capable of. SWOT analysis is a way to receive all kind of the information from the external and internal environmental issues of a particular organization....   [tags: influences, market, products]

Better Essays
957 words (2.7 pages)

Analysis Of Subdo, A Web Based Substitute Teacher Evaluation And Selection Tool

- Introduction This document presents a description of SubDo, a web based substitute teacher evaluation and selection tool. This document will describe the problem that SubDo intends to address, potential use cases and software requirements of a proposed solution. The SubDo project is designed to optimize the processing of finding substitute for absent teachers. This Software will be web based, with a desktop and mobile interface. This application will make it easy for teachers to report their unavailability for a particular day, and will notify suitable substitutes to fill in for the teachers....   [tags: Teacher, Substitute teacher]

Better Essays
1031 words (2.9 pages)

The Threat of a Stereotype Essay

- Stereotype threat is present in our everyday lives and it prevents people from doing things to their fullest abilities. It is the fear of confirming a negative stereotype about you resulting in weaker performance. An example where stereotype threat exists is in the case where African Americans do poorly on tests compared to Caucasian individuals. This occurs because the stereotype is that African Americans are intellectually inferior to Caucasian people. In a setting where the negative stereotype is brought to mind, African Americans will perform poorly on tests when in fact they are able to perform equally as well if not better than Caucasian individuals....   [tags: reducing stereotype threat research]

Better Essays
1376 words (3.9 pages)