Homework Question on Under Armour Organization
- You will apply important microeconomics concepts toward the competitive strategies of an organization that operates in an industry of your choice. You will evaluate the differences between market structures and identify a group of competitive strategies consistent with the market structure that best aligns with the market in which the organization competes.
- You will assess how the market structure positively and negatively affects the organization’s ability to earn an economic profit over time and evaluate the effectiveness of the organization’s competitive strategies. Select an industry. Identify an organization in that industry.
- Your selected organization must be submitted for instructor approval. —- I have selected the SPORTS APPAREL INDUSTRY/ The organization that I have chose is UNDER ARMOUR” Describe the level of competition the organization will face if under each of the following market structures:
- Perfect competition
- Monopolistic competition Format consistent with APA guidelines.
Homework Answer on Under Armour Organization
Under Armour (UA) is an organization operating in the sports apparel industry. The company focuses on the development, marketing and distribution of sports wares in different parts of the world. The sports apparel industry is one of the fastest growing industries in the world as people become more aware of the need to keep fit and the importance of sports in the current world. Further, women have also shown interest in the sports world, thus creating more opportunities for the companies within the apparel industry.
UA faces stiff competition from Nike and Adidas, some of the largest companies within the industry. However, the company has managed to maintain a level of competitiveness regardless of the competition from larger companies, thus making it one of the strongest organizations within the industry. The purpose of this paper is to discuss the level of competition that under Armour would face in four different market structures, including monopoly, oligopoly, perfect competition and monopolistic competition.
In a monopolistic structure, UA would enjoy all the benefits of serving the wide range of consumers in the sports apparel industry. A monopolistic structure would see the company cut down marketing and differentiation costs, thus raising the economic potential of the organization. A monopolistic structure gives an organization the opportunity to set standards of operation within the industry, which will be advantageous for UA. One of the major challenges in the sports apparel industry is the threat of new entrants.