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Nintendo Business Analysis

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Submitted By 2rock2
Words 1191
Pages 5
Nitendo

Situation:

Under Armour is an innovative company that makes performance athletic gear, ranging from underwear to camouflage hunting wear. The majority of Under Armour apparel is made of the company’s moisture-wicking and heat dispersing fabrics, which help keep moisture away from the athlete during athletic training, exercise, and performance. Under Armour products are available through internet sales, catalog sales, and retail stores both nationwide and internationally.
Under Armour is the leading “compression”sports apparel brand.

Under Armour is currently trying to increase their competitive advantage through innovation and introducing new products that will keep faithful customers coming back to their brand and attract new ones as well. Newproduct lines include
“Charged Cotton” (Barrie,2011) and “Cold Black” (Walter, 2011)

Complication:

Currently, the primary challenge for Under Armour is the ability to maintain a focused-differentiated marketing strategy in a saturated market with huge competitors such as Nike and Adidas. Bothof these competitors have the resources and capital to counter Under Armour with comparable products at lower consumer prices. Under Armour’s lack of intellectual property(patents) are a weakness for the company. Currently, Under Armour does not own any patents on their products.
This has opened up the market to larger competitors, such as Nike and Adidas.
The company also relies heavily on third-party suppliers and manufacturers which are small in number. This could adversely affect the long-term sustainability of the firm (Hitt, Ireland,Hoskinsson, 2011), as well as their bargaining power.
This could result in a lack of control in pricing.

Another challenge for Under Armour is the seasonality of their sales. Under
Armour’s performance apparel is more applicable to sports

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