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How strong are the competitive forces confronting Under Armour, Nike, and The Adidas Group? Do a Five- forces analysis to support your answer. The five forces analysis according to Gamble et al., (2014) include;Competition from rival groups The rivalry between Adidas Group and Nike is so vigorous. The three competitors are striving to improve their market share and sales. The rivalry is mainly based on two factors which include brand reputation and image, and performance features and product quality. The competitive pressures between Under Armour, Nike, and Adidas has intensified due to the aggressive effort of every company to strengthen the appeal of their brand name. This has been possible due to celebrity endorsements, advertising, and sponsoring of sports events. The differentiation that exists between the brands weakens the rivalry. Such differentiations include design, brand image, style, and product selection. The differentiations intensify customer’s preference for certain products thus giving rise to purchaser allegiance to their favorite brand as well as hindering brand switching. Rivalry from potential new entrants This rivalry can be viewed as moderate. The increased rate of advancement in the consumers’ demand for performance athletic attire has intensified the threat of new entry. New entrants face barriers in building distribution networks and attracting potential customers. This may not offer intense competition to Under Armour, Adidas, and Nike but with time if strong marketing is done they will be able to compete for the market share. Rivalry from manufacturers of substitute goods This competition is moderate. Technology has aided in
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