Question

Choose TWO of the value chain activities and discuss their contribution to Under Armour’s competitive advantage. Be sure to note how Under Armour performs that particular activity in a way that contributes to either lower costs to the company or increased value to the customer.

Answer 1

answer-

The main primary activity which lower the cost of Under Armour business is its Inbound Logistics. In this value function Under Armour had built close relationships with its suppliers to maintain its inbound logistics well. It evolved a system to work closely with its suppliers and supply the goods which are demanded by suppliers . this helps Company to procure supplies at low cost even on credit so that manufacturing can be done at right time at lower cost and company can deliver the shoes or other products to customers on right time.

Marketing and sales is second primary function which helps to increase value to customers because this function helps in brand awareness of the firm among public. , Under Armour developed a unique temperature control T-Shirts which are received well by the consumers immediately after their release in the market. With respect to promoting their products, Under Armour mastered several strategies which made it a master marketer. Its effective use of product placements in TV shows, movies, and video games made its products very well sought after by its consumers. Under Armour also believed in the effectiveness of word of mouth advertising in order to spread information about its products to the targeted customers. As 80 percent of users of sports goods are non-athletes, product placements and word of mouth advertising increased the popularity of Under Armour’s products among the young customers quickly. Once the revenues of the company have increased, Under Armour had also started to sponsor sporting teams and youth tournaments which helped greatly in increasing the awareness and brand authenticity at the ground level.