Competitive rivalry is very high.
As there are many sports brands that a customer can choose from. Substitution for
similar product increases threat for competition. There are a lot of factors
that tend to cause competition are price, product, brand, materials and also
the different markets they are selling their products in.

Competitive rivalry.

Customers play a major role in the
business. There is a wide range of choices that a customer can buy from in the
clothing, shoes and their favorite accessories. Customers also have the ability
to shop for the lowest prices products or for a similar product. It becomes
critical for under amour to create unique products and products that customers
are willing to buy and pay for the price. Customers also tend to shop through
brand recognitions and associations. So sponsoring athletes to wear their
product and advertise can gain customer to buy their product.

Bargaining power of Customer

Suppliers usually tend to sell
its material and products to various companies which are involved in the same business
and are manufacturing the same products. The buyers tend to buy larger quantity
at cheaper price from supplies then smaller companies. Under amour for some
products have a higher price products then Nike, because under amour tend to
use innovative ideas in creating different material fabrics for its clothing. This
helps in creating product differentiation for more competition.

Bargaining power of Suppliers

The threat of Substitutes is
high, because the as interest in sport is growing worldwide and the demand for
athletic clothing continue to rise and is also expected to grow. For every
industry is always a threat of a more innovative products entering as a substitute.
“However, in under amour industry, it is difficult for a company to successfully
create many such substitute products across various sports.”

Threat of Substitutes

As there are countless number of companies
of athletic apparel companies that are competition with Under Amour. Only few companies
could establish a distribution channels to compete with Under Amour products
lines. The major competitors are Nike and Adidas. Even though through the tough
competitor Under Amour has achieved high sales and a higher growth rate in the
recent years. “In general, the barriers to entry for a diversified athletics apparels
company are very high.” It’s highly possible for new companies to entry smaller
niches of the industry.

Threat of new Entrants

https://www.businessnewsdaily.com/5446-porters-five-forces.html

https://www.investopedia.com/articles/markets/020316/analyzing-porters-five-forces-under-armour-ua.asp

B. Porter’s Five Forces          

Political factors are a lot important to the business as
there are many law and regulations that a company or an organization has to follow
to run the business on a large scale. There are various political laws and
regulation the company has to follow from the manufacturing process to the
final sale of the of the product. Several aspects of government policy ca
affect business. All firms must follow the law. Managers, must find how
upcoming legislations can affect their activities.  For example increase in tax is one of the political
element affecting the business.

Political Factors Affecting Business

Political

The economic environment can impact a business in a negative
or in a positive way. There are four major factors that affect the economic and
that impacts the business directly. The factors that directly affect the consumer
are employment, Interest Rate, inflation and consumer confidence. Employment
plays a very major role on the side of the consumer market. When unemployment
is low, consumer spending tends to be high because most people is high,
consumer spending tends to be low because unemployed people don’t have excess
income to spend.

https://yourbusiness.azcentral.com/economic-factors-affecting-businesses-4557.html

Economic

Environment is a major concern which companies need to consider
a d follow the environmental law for every new manufacture product or selling a
particular product in the market. Under amour had worst ethical consumer rating
for toxic chemical rating. In June 2016 ethical consumer viewed under amour our
had no policy listed on its website for toxic policy for clothing or any plans
to eliminate toxic chemical used in the supply chain management. According to
Greenpeace’s detox Campaign a toxic policy is necessary for all garment
companies to ensure no hazardous substances have a  negative impact on the environment while
producing manmade fibers or dying of fabrics. All these environmental issue
would cause a major problems to the companies.

http://www.ethicalconsumer.org/companystories.aspx?CompanyId=1355119&CategoryId=288190

Environmental

Technology is a very integral part of many organization, as
most of the work at an organization involves working with technology and big
data. As technology provides with many advantage to the sports brands, advertising,
health tracking apps and other devices to track ones fitness. It also has some
drawbacks to as everyone today tend to use smartphones which gives them an
access to a dozen fitness tracking apps which are cheap or free of cost. Some
would not buy a fitness band or devices from Under amour to do the same task.
They could pioneer technology for apparels and their designing and marketing.

Technology

Sociocultural

http://www.baltimoresun.com/business/under-armour-blog/bal-facing-backlash-after-trump-praise-under-armour-says-we-engage-in-policy-not-politics-20170208-story.html

Sociocultural is very important for a brand or a company as
most of the social issues are at the core of the community that the brands
represent. Having an agenda or motto helps brands to messaging and advertising
products to the cultural insight they have chosen to affect.  For example under amour had to cut ties with
a sponsored hunter for posting a video of himself spearing a baited bear ,
because while animal advocates deplored the hunt. The hunting community took
issues with under amour’s decision to stop sponsoring the hunter.

Technology

Technology is a very integral part of many organization, as
most of the work at an organization involves working with technology and big
data. As technology provides with many advantage to the sports brands, advertising,
health tracking apps and other devices to track ones fitness. It also has some
drawbacks to as everyone today tend to use smartphones which gives them an
access to a dozen fitness tracking apps which are cheap or free of cost. Some
would not buy a fitness band or devices from Under amour to do the same task.
They could pioneer technology for apparels and their designing and marketing.

Environmental

http://www.ethicalconsumer.org/companystories.aspx?CompanyId=1355119=288190

Environment is a major concern which companies need to consider
a d follow the environmental law for every new manufacture product or selling a
particular product in the market. Under amour had worst ethical consumer rating
for toxic chemical rating. In June 2016 ethical consumer viewed under amour our
had no policy listed on its website for toxic policy for clothing or any plans
to eliminate toxic chemical used in the supply chain management. According to
Greenpeace’s detox Campaign a toxic policy is necessary for all garment
companies to ensure no hazardous substances have a  negative impact on the environment while
producing manmade fibers or dying of fabrics. All these environmental issue
would cause a major problems to the companies.

Economic

https://yourbusiness.azcentral.com/economic-factors-affecting-businesses-4557.html

The economic environment can impact a business in a negative
or in a positive way. There are four major factors that affect the economic and
that impacts the business directly. The factors that directly affect the consumer
are employment, Interest Rate, inflation and consumer confidence. Employment
plays a very major role on the side of the consumer market. When unemployment
is low, consumer spending tends to be high because most people is high,
consumer spending tends to be low because unemployed people don’t have excess
income to spend.

Political

Political Factors Affecting Business

Political factors are a lot important to the business as
there are many law and regulations that a company or an organization has to follow
to run the business on a large scale. There are various political laws and
regulation the company has to follow from the manufacturing process to the
final sale of the of the product. Several aspects of government policy ca
affect business. All firms must follow the law. Managers, must find how
upcoming legislations can affect their activities.  For example increase in tax is one of the political
element affecting the business.

B. Porter’s Five Forces          

https://www.investopedia.com/articles/markets/020316/analyzing-porters-five-forces-under-armour-ua.asp

https://www.businessnewsdaily.com/5446-porters-five-forces.html

Threat of new Entrants

As there are countless number of companies
of athletic apparel companies that are competition with Under Amour. Only few companies
could establish a distribution channels to compete with Under Amour products
lines. The major competitors are Nike and Adidas. Even though through the tough
competitor Under Amour has achieved high sales and a higher growth rate in the
recent years. “In general, the barriers to entry for a diversified athletics apparels
company are very high.” It’s highly possible for new companies to entry smaller
niches of the industry.

Threat of Substitutes

The threat of Substitutes is
high, because the as interest in sport is growing worldwide and the demand for
athletic clothing continue to rise and is also expected to grow. For every
industry is always a threat of a more innovative products entering as a substitute.
“However, in under amour industry, it is difficult for a company to successfully
create many such substitute products across various sports.”

Bargaining power of Suppliers

Suppliers usually tend to sell
its material and products to various companies which are involved in the same business
and are manufacturing the same products. The buyers tend to buy larger quantity
at cheaper price from supplies then smaller companies. Under amour for some
products have a higher price products then Nike, because under amour tend to
use innovative ideas in creating different material fabrics for its clothing. This
helps in creating product differentiation for more competition.

Bargaining power of Customer

Customers play a major role in the
business. There is a wide range of choices that a customer can buy from in the
clothing, shoes and their favorite accessories. Customers also have the ability
to shop for the lowest prices products or for a similar product. It becomes
critical for under amour to create unique products and products that customers
are willing to buy and pay for the price. Customers also tend to shop through
brand recognitions and associations. So sponsoring athletes to wear their
product and advertise can gain customer to buy their product.

Competitive rivalry.

Competitive rivalry is very high.
As there are many sports brands that a customer can choose from. Substitution for
similar product increases threat for competition. There are a lot of factors
that tend to cause competition are price, product, brand, materials and also
the different markets they are selling their products in.

Sociocultural is very important for a brand or a company as
most of the social issues are at the core of the community that the brands
represent. Having an agenda or motto helps brands to messaging and advertising
products to the cultural insight they have chosen to affect.  For example under amour had to cut ties with
a sponsored hunter for posting a video of himself spearing a baited bear ,
because while animal advocates deplored the hunt. The hunting community took
issues with under amour’s decision to stop sponsoring the hunter.

http://www.baltimoresun.com/business/under-armour-blog/bal-facing-backlash-after-trump-praise-under-armour-says-we-engage-in-policy-not-politics-20170208-story.html

Sociocultural