Business Strategy (Management) Free Sample

Question: Below is an outline of the types of issues you will want to address in your Industry Analysis. Be sure to go beyond just describing the industry; that is, discuss the implications of your findings for firms competing in your industry. Please note that not all issues contained within each section will apply to every industry. Please choose the most pertinent issues and discuss them according to the applicability to your assigned industry. However, there are certain basic sections that should be in all presentations, so please make sure to include them in your assignment. Answer: Introduction The article represents various aspects of Athlete Apparel industry. The athlete apparel industry is one of the booming sectors of consumer market. The industry has few market leaders and posses high entry and exit barriers. In this context, the article discusses the strategies of three market leaders namely Nike, Adidas and Under Armour. Key success factors for competitive success The three key success factor The key success factors of Athlete Apparel industry are as mentioned below: The economy of US: The booming US and global economy are one of the major success factors of this industry. The main target market of this industry is young adults. According to The Teen Transition (2016), the global population of people between age group from 18 to 24 is expanding faster and they have increasing purchasing power. This act as one of the key success factors for the athlete apparel Marketing and Distribution: The increased competition and demand in the industry has made it mandatory for the companies to utilize efficient supply chain. Today the companies have opportunities to distribute their products through ecommerce sites, internet, retail stores and various branded storefronts. It helped the companies to reach out to consumer sectors of any part of the world. These multi-channel distribution services help the companies to get the competitive advantages. Sustainability and Innovation: With the availability of various innovative technologies, the industry is constantly improving their products and supply chain. The ecommerce businesses helped this industry accessible to any parts of the world. Apart from that, innovative products like boltwear from Puma, various uniforms by Nike get the attention of the world which in turn makes this industry popular and successful. The variability of key success factors over market segments The few KSFs vary by segments. Though the economy of the world is booming, the main consumers of athlete apparel are the US and the UK. The market share of US in this industry is 41%, market share of UK is 38%, whereas Asias market share is only 16% (Merk, 2014). Apart from that, the effectiveness of distribution channel varies according to the market segments. The unavailability of access to the internet, poor transportation, government taxes and policies of countries affects the distribution and marketing efforts of the company(Shank Lyberger, 2014). The variability of key success factors over time The athlete apparels are high prices products and companies thus position themselves as premium brands. So, the changing global economy determines the fate of the industry as it determines the purchasing power of the people. As the retail sectors are growing and the ecommerce sites are becoming more popular to the consumers, the marketing and distribution factors will strengthen the profitability of this industry (Shank Lyberger, 2014). Apart from that, the invention of various technologies helped the companies to produce better products cost effectively. Implication of the evaluation So, it the key success factors like economy, marketing and distribution, sustainability and innovation vary over times and market segments. This is the reason for which UK and US are the largest consumers of the brands despite the fact that the brands have presence all over the world. The above discussion shows that these factors also changes over time. So, the companies should constantly research on the changing customer demand and potential market. Companies in the Strongest or Weakest position The three different firms are chosen for the comparative discussions are Nike, Under Armour and Adidas. The positioning of Nike, Under Armour and Adidas: Nike positioned confidence and sportiness by its tagline "Just do it" and the symbol of a wing. It also positioned itself as a premium brand. Whereas Adidas positioned itself as a strong brand which is widely available. On the other hand the tagline of Under Armour "I Will" captures intensity, passion and drive.(Kozlowski et al., 2015). The strategies of Nike under the light of Porter's Generic Strategies: Nike followed the low cost production strategy by selecting production facilities and suppliers across Asia (Kozlowski et al., 2015). It focused on broad differentiation by focusing on men, women and children and for each category it offered various accessories and appeals. It focuses on market segmentation by sponsoring various athletes, college teams etc. The strategies of Adidas under the light of Porter's Generic Strategies: Adidas focuses on broad differentiation. It concentrates on innovation. Adidas has various ranges of products and broad product lines. It concentrates on its supply chain. They made the product available through ecommerce to anywhere in the World. Their focus is not in cost leaderships but on differentiation (Davies Burakowski, 2015). The strategies of Under Armour under the light of Porter's Generic Strategies: The Under Armour focuses on cost leadership (Keefe et al., 2013).The low cost products and proportioning through upcoming athlete created a strong value in the market. It distributed its products through ecommerce sites and other retail chains. The company is new in the market, through its cost leadership and unique marketing created its position in the industry. Among the three firms, the Nike is the market leader and the strategies followed by Nike are attractive to others. That is why the new entrant Under Armour follows Nike's strategy to some extent (Ratten, 2016). Apart from that, the differentiation strategy of Porter is appropriate to do the comparative analysis of a brand and its competitors and market. Conclusion The article discussed the various key success factors of the industry. The success factors are variable in the context of changing economic and technological scenario. Apart from that, the article also represents the competitive strategies of Nike, Adidas and Under Armour in the Athlete Apparel industry under the light of Porters Generic theory. So, the article concludes that, though there is high entry barrier in the industry, there is various potential for new entrants. References: Davies, M. J., Burakowski, K. A. (2015). A Qualitative Analysis of Athletic Apparel and Equipment Sponsorship Related to Student-Athlete Recruitment.The Qualitative Report,20(3), 271. Keefe, M., Peak, K., Simpson, S. (2013, March). Impact of Athletic Apparel Company Funding on Grass Roots Basketball. InRESEARCH QUARTERLY FOR EXERCISE AND SPORT(Vol. 84, pp. A95-A95). 4 PARK SQUARE, MILTON PARK, ABINGDON OX14 4RN, OXFORDSHIRE, ENGLAND: ROUTLEDGE JOURNALS, TAYLOR FRANCIS LTD. Kozlowski, A., Searcy, C., Bardecki, M. (2015). Corporate sustainability reporting in the apparel industry: an analysis of indicators disclosed.International Journal of Productivity and Performance Management,64(3), 377-397. Merk, J. (2014). The rise of tier 1 firms in the global garment industry: Challenges for labour rights advocates.Oxford Development Studies,42(2), 259-277. Ratten, V., 2016. Guest editorial The dynamics of sport marketing: suggestions for marketing intelligence and planning.Marketing Intelligence Planning,34(2). Shank, M. D., Lyberger, M. R. (2014).Sports marketing: A strategic perspective. Routledge. The Teen Transition: (2016).The Teen Transition: Adolescents of Today, Adults of Tomorrow.Nielsen.com. Retrieved 20 March 2016, from https://www.nielsen.com/in/en/insights/news/2013/the-teen-transition--adolescents-of-today--adults-of-tomorrow.html