The Bargaining Power of Suppliers for Under Armour

For the popular sportswear brand Under Armour, its top ten suppliers manufacture less than half of all its product offerings. To Under Armour, the bargaining power of suppliers is likely to be low.

Explanation:

The bargaining power of suppliers refers to their ability to influence the terms and conditions of a business relationship. In the case of Under Armour, its top ten suppliers manufacture less than half of all its product offerings. This indicates that Under Armour has a diverse supplier base, which reduces the bargaining power of individual suppliers.

Having a diverse supplier base is advantageous for Under Armour as it provides the brand with more options and flexibility. If one supplier raises prices or fails to meet quality standards, Under Armour can easily switch to alternative suppliers without significant disruptions to its operations.

Furthermore, a diverse supplier base gives Under Armour more leverage in negotiations. With multiple suppliers competing for Under Armour's business, the brand can negotiate more favorable terms, such as lower prices or better payment terms.

Overall, the fact that Under Armour's top ten suppliers manufacture less than half of its product offerings suggests that the bargaining power of suppliers is likely to be low for the brand.

What does it mean when Under Armour's top ten suppliers manufacture less than half of its product offerings?

When Under Armour's top ten suppliers manufacture less than half of its product offerings, it indicates that the brand has a diverse supplier base. This diversity reduces the individual suppliers' bargaining power and provides Under Armour with more flexibility and options.