Question: This freshly revised case should generate considerable student interest and provoke a lively, interesting class discussion of the apparent interruption in the company s rapid
This freshly revised case should generate considerable student interest and provoke a lively, interesting class discussion of the apparent interruption in the companys rapid climb to prominence in the intensely competitive sports and fitness apparel industry. How much further can the company grow now? Is the push toward broader product lines to appeal to different segments for sports and fitness apparel sustainable, or will the declining growth in demand for the companys core products in North America continue to be a drag on earnings and stock price appreciation? What moves must CEO Kevin Plank make to get the company back on track? What, if any, further changes in strategy are needed at Under Armour?Before beginning this exercise, you will need to read the Under Armour case.What factors are acting to intensifyweaken the bargaining power and leverage of suppliers in the athletic apparel industry?Select yes for those statements below that are accurate and choose no for those that are not.a Switching costs are too high for Under Armour, Nike, and Adidas to find suppliers who offer the same quality performance fabrics.Click to selectb The two types of suppliers that really matter are the suppliersmakers of performancebased fabrics and the contract manufacturers that actually produce the apparel items.Click to selectc Fabric suppliers having nondifferentiated or commoditylike performance fabrics have significant bargaining power to the extent that comparable fabrics are readily available from other fabric suppliers at competitive prices.Click to selectd Fabric suppliers having proprietary fabrics with superior performance features andor superior quality andor especially stylish designs have significant bargaining power to influence prices and other terms and conditions.Click to selecte Product differentiation if it is truly significant almost certainly enables suppliers to command a price premium intensifying their bargaining power.Click to selectf Competitive pressures from the bargaining power and leverage of suppliers are weak in the case of contract manufacturers.Click to selectg Competitive pressures from the bargaining power and leverage of suppliers is very strong when certain fabric suppliers have developed performance fabrics that have better quality andor features andor more stylishappealing fabric designspatterns than those of rival fabric suppliers.Click to select
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