- Tags:
- Show more
- Pages:
- 4
- Words:
- 1100
Nike, Adidas and Under Armour Environmental Scan Nike, Adidas and Under Armour Environmental Scan The success of a business venture is heavily reliant on both internal and external factors of the business. Internal environment relates to the factors inside the company that will influence its performance. In most cases, these factors are easily manageable within the firm. These factors are therefore essential for success because of its ease of manipulation. ("Strategic Planning: What are the basics of environmental scanning?", 2012) The external environment encompasses factors outside the jurisdiction of the business whose influence affects the performance of the business. The organization has limited or absolutely no control over these factors. These factors are adequately analyzed using the PESTEL business theory. An important point where internal and external factors intersect allowing a business to influence the external environment is a competitive advantage. According to Porter’s five forces, a firm’s competitive advantage may be affected by bargaining power of suppliers, competitive rivalry, and bargaining power of consumers, the threat of new entrants and threat of substitute products or services. (Arline, 2015) Through proper manipulation of these factors, a company can leverage itself advantageously within a particular market segment. This paper will review three apparel firms; Nike, Under Armour and Adidas to evaluate their internal and external environments and how each manipulates these factors to compete effectively against the other two rivals. Nike, Adidas, and Under Armour represent the largest companies in the sports apparel industry in the US
Leave feedback