Sponsorship Unlike athletes Under Armour has the opportunity to sponsor events

Sponsorship unlike athletes under armour has the

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Sponsorship. Unlike athletes, Under Armour has the opportunity to sponsor events simply by creating them. Athlete’s require the company to find them, events are not so complicated and have a far different impact. Sponsoring races such as a marathon or a 5K allows Under Armour a wide array of advertising as these events will have merchandise and memorabilia in the form of t- 10
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shirts and finisher medals. As the sponsor of these events, Under Armour is able to associate itself with the sport of running, and put its logo on all of the official race gear. Runners love medal, and like any other runner, they will take their medal home with them and hang it up somewhere. Under Armour now has permanent advertising in that participants home, and remember that over 60 million people partake in a running event each year. That’s a lot of free advertising. Market demand. Number of people who participate in a running event in the United States alone is a staggering number, when you add the rest of the world to that it will be an insurmountable amount of people to provide running shoes for. Simple supply and demand dictate why certain running shoes cost so much. There is not enough supply to meet demand and when this happens a shortage occurs. A shortage gives companies the opportunity to raise their prices. This would allow Under Armour to sell the HOVR Infinite 2.0 at a considerably higher price than its predecessor. Threats Political effects. Kevin Plank, the leader that Under Armour needs, only ever made one mistake. He committed the cardinal sin of business which is to not mix business with politics. While praising current President Trump, he also made a serious miscalculation in how this could backfire (Green, 2017). Whenever politics enters the business environment, there is the chance of alienating half of the consumer base, and losing them as customers. Losing customers, for reasons that have nothing to do with the products or service Under Armour provides is reckless beyond belief. As with any business, the company has a mission to make money, regardless of 11
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the official mission statement. This single action jeopardized that mission by giving the company a negative reputation, with at least half of the consumer base. Competitor’s actions. Under Armour made one technological breakthrough that resulted in the company exploding into the market. This is an ever-present threat of the running shoe industry. All it takes is one company coming up with a new process or a new formula and Under Armour’s entire line of running shoes, to include the HOVR Infinite 2.0, would be rendered obsolete. Having obsolete technology is not a good thing when the number one influencing factor for consumers is the technical aspects of the shoe (Runister). Seeing how most companies protect their future product designs like they are nuclear missile codes, this particular threat can due drastic damage given the suddenness of it. When Under Armour first appeared with its compression shirt, all other
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