Under Armour
Porter’s five forces of competition rivalry, power of buyers, power of sellers, threats of substitution, and threats of new entrants has directly affected Under Armour since the company’s establishment in 1996. Under Armour is most commonly known for its performance apparel, footwear, and accessories sold worldwide. Though fairly new, Under Armour has increased their stock price by more than 20% in the last three months as stated in, “Under Armour Through the Lens of Porter’s Five forces.” After introducing a new footwear collection in 2006, Under Armour’s net sales skyrocketed making them a force to be reckoned with. Despite Under Armour’s early advancements they have dealt with various challenges. The number one concern Under Armour is facing right now is their competitive rivals. Their minor competitors include Jones Group Inc., Fifth and Pacific, and Columbia Sportswear (Bloomberg, 2007). Their major competitors include the popular Nike and Adidas. Although Under Armour finished 2012 with a positive net income of 123.89 million, Nike and Adidas finished with an overpowering $2.2 billion and $526 million, respectively. One edge that Under Armour has over these two leading companies is its consistent increase in profit over the years. This is a great advantage to uphold because future sales tend to reflect company records. Bargaining power of consumers has created some concern for Under Armour. Wholesale users contributed 22% of net revenue in 2012 through Sports Authroity, Dick’s Sporting Goods, Finish Line, and several more. Due to the large amount of carriers for this product, the likelihood of buyers demanding an augmented price is slim. There is a possibility of consumers buying more competitors label resulting in decrease revenue, but since Under Armour is constantly innovating their style this event is also unlikely. The fact that this company displays comparable price rates, a great deal of advertising, and sponsorships with