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The rivalry among established companies is intense. The sports apparel industry is very competitive and demand conditions are high. There are a large number of firms in the sports apparel industry which increases rivalry. Low switching costs also lead to fierce competition. Under Armour’s key competitors have large levels of capital and have achieved economies of scale. Low levels of product differentiation also increase rivalry. The threat of new potential entrants is moderately high. The global sports and fitness clothing market has witnessed several new trends in its market such as rise in consumer appeal towards healthy lifestyles, emergence of new sports and an increase in sports participation rates (Morkel). Numerous competitors would be compelled to enter into the market. There are low barriers to enter the sports appare了industry largely due to common technology and ease of brand switching. However, the branding and image of the largest firms in the industry raise the ease of entering the market. Key players in the industry include Reebok, Adidas, Puma and Nike. A new entrant would have to spend a lot of money on marketing and advertising to become competitive with Nike and Adidas. Product differentiation 7 can create a barrier to entry because of a high level of advertising and promotion (Hunger, 40). The threat of substitute products ishigh and it can limit the price a company can charge for its products and services. The multi segment global market for sports apparel, athletic footwear, and related accessories was fragmented among at least 25 brand name competitors (Morkel,n.p.). Technology has tremendously aided to increase the threat of substitute products. More consumers are using the web to research prices, find sales and read reviews (Gaille,n.p.). The bargaining power of buyers is high. Highly price sensitive customers have a lot of power. There are

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